02-22-00 agendaCITY OF RICHFIELD
TUESDAY, FEBRUARY 22, 2000
REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
RICHFIELD CITY HALL
COUNCIL CHAMBERS
7 P.M.
AGENDA
CALL TO ORDER
APPROVAL OF MINUTES OF REGULAR HRA MEETING OF JANUARY 18, 2000
1. -OATH OF OFFICE TO HRA COMMISSIONER DAN LINNIHAN
2. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON THE
AGENDA
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 COMMISSIONERS 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 RESOLUTION AUTHORIZING ISSUANCE
OF CERTIFICATES OF COMPLETION FOR NEWLY CONSTRUCTED
RESIDENTIAL PROPERTY AT 6805 IRVING, 6824 PARK, 7133 LYNDALE, 6228
PLEASANTAND 7520 COLFAX AVENUES S.R. NO. 16
B. CONSIDERATION OF APPROVAL OF RESOLUTION MODIFYING RICHFIELD
REDEVELOPMENT PROJECT AREA PLAN AND INTERSTATE-LYNDALE-
NICOLLET TAX INCREMENT FINANCING PLAN S.R. NO. 17
1~ J
PUBLIC HEARINGS
5. PUBLIC HEARING AND CONSIDERATION OF HRA'S REVISED
ADMINISTRATIVE PLAN FOR RICHFIELD'S SECTION 8 HOUSING
ASSISTANCE PROGRAM
STAFF REPORT NO. 18
6. PUBLIC HEARING AND CONSIDERATION OF HRA'S FIVE YEAR AND ANNUAL
PUBLIC_HOUSING A.UTHO.RITY_PLAN.,FOR_RJCHFIELD'_.S SE.CT.ION 8 HOUSING
ASSISTANCE PROGRAM -
STAFF REPORT NO. 19
7. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING
SALE OF SPLINTER PARCEL TO DAVID J. FOREST, 7033 OAKLAND AVENUE,
FOR $2,000
STAFF REPORT NO. 20
8. EXECUTIVE .DIRECTOR REPORT
9. CLAIMS AND PAYROLL
ADJOURNMENT
Auxiliary aids for individuals with disabilities are available upon request.
Requests must be made at least 96 hours in advance to the Administrative
Services Director at 612-861-9702.
n
LJ
AGENDA SECTION: public Hearing
AGENDA ITEM # 7
REPORT # 2 Q
•
STAFF REPORT
~ HRA MEETING DATE:
FEBRUARY 22, 2000
REPORT PREPARED BY: ANDREW G. GILLETT, COMMUNITY
- - - -- -= DEVELOPiVIENT TECHNICIAN
NAME, TITLE
REPORT PRESENTER: BRUCE PALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY EXECUTIVE
DIRECTOR: ~.
.ITEM FOR HRA CONSIDERATION:
Public hearing and authorization to sell a splinter parcel at 70th Street and Oakland Avenue to
David J. Forest, the adjacent property owner.
~~ L RECOMMENDED ACTION: I~
Conduct and close the public hearing and by motion: Adopt the
attached resolution authorizing the sale of the splinter parcel to David
J. Forest, property owner at 7033 Oakland Avenue for $2,000.
III. BACKGROUND
The Housing and Redevelopment Authority (HRA) acquired 7037 Oakland .Avenue
under the ,Richfield Rediscovered Program. Part of the redevelopment strategy was, to
subdivide the north ten feet of this wide lot and combine it with the narrow lot to the
north. The remaining 72 x 133 foot lot was sold to a builder/buyer team and has since
been completed with a new home. Following a public hearing, the HRA can sell the ten
foot splinter property to David J. Forest to be consolidated with his existing 55 x 133 foot
property located at 7033 Oakland Avenue.
III. BASIS OF RECOMMENDATION
0222-70330akland
A. POLICY
• The HRA must authorize the sale of, real property.
B. CRITICAL ISSUES
• The City subdivided 7037 Oakland Avenue for the purpose of conveying ten foot
strip of land to the owner of 7033 Oakland Avenue following a public hearing by the
H RA.
• The property owner at 7033 Oakland Avenue has indicated an interest in purchasing
the property.
- • The ten foot splinter property-as of ubstandacd size and cannot be redeveloped.
• Increasing the lot size of 7033 Oakland Avenue eliminates a driveway encroachment
problem and increases the lot width to a more standard size for the neighborhood.
• Notice of public hearing on sale of the property was published on February 9, 2000
in the Sun-Current.
• BCL Appraisals placed a $2,000 value on the splinter parcel.
C. FINANCIAL
• Proceeds from the sale of the splinter property will be added to Richfield
Rediscovered funds.
D. LEGAL
• No significant legal issue.
IV. ALTERNATIVE RECOIVIlVIENDATION(S~
• Do not proceed with the sale.
V. ATTACPIMENTS
• Resolution.
• Site plan (Attachment A).
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• City Staff
•
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING THE .SALE OF REAL PROPERTY LOCATED ADJACENT TO
7033 OAKLAND AVENUE TO DAVID J. FOREST
WHEREAS, the Richfield Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (HRA) desires to convey certain real property pursuant to and in
furtherance of the Richfield Rediscovered Program adopted by the HRA, said real property
being described as follows:
Address: Legal Description:
7.033 Oakland Avenue --The.S-10 ft of the,.N 65 ft of the W'/ of the
south splinter parcel SE'/4 of -the NW'/4 of the NW of
the NW'/4 of Section 35, Township 28, Range 24
except the W 30 ft, according to the United States
Government Survey thereof and situate in
Hennepin County, Minnesota.
WHEREAS, the HRA is authorized to sell real property within its area of operation after
a public hearing; and
WHEREAS, the purchaser of the described property has been identified and a purchase
agreement negotiated as follows:
Address Sale Price Purchaser
7033 Oakland Avenue $2,000 David J. Forest
south splinter parcel
WHEREAS, a public hearing has been held after proper public notice.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority
in and for the City of Richfield:
A public hearing has been held and the property adjacent to 7033 Oakland
Avenue is authorized to be sold for $2,000 to David J. Forest.
2. The Chairperson and Executive Director are authorized to execute a purchase
agreement and other documents necessary to effectuate the sale.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 22nd day of February, 2000.
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
0222-70330akland
ATTACHMENT A
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EXISTING PROPERTY LINE
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~ PROPOSED PROPERTY LINE
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AGENDA SECTION: public Hearings
AGENDA ITEM #
REPORT # 19
D
STAFF REPORT
HRA MEETING DATE:
FEBRUARY 22, 2000
REPORT PREPARED BY: LYNNETTE CHAMBERS
LEASED HOUSING SPECIALIST
NAME, TITLE
REPORT PRESENTER: BRUCE NORDQUIST,
~-IOUSING & F~EDEVELOPMENT MANAGER
Nance TITLE
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY EXECUTIVE
DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Conduct. a public hearing and approval of the Richfield Housing and Redevelopment
Authority's five year and annual Public Housing Authority Plan.
~~ I. RECOMMENDED ACTION: ~~
Conduct and close the public hearing and by motion: Approve the
Housing and Redevelopment Authority's (HRA) five year and annual
Public Housing Authority (PHA) Plan for the Richfield's Section 8
Housing Assistance Program and authorize the Chair and Executive
Director to execute. program documents.
IL BACKGROUND
The Quality. Housing and Work Responsibility Act of 1998 (QHWRA) created by Congress the
requirement to provide Public Housing Agency (PHA) Plans -- a five-year plan and an annual
plan. The five-year plan describes the mission of the Agency and the Agency's long range
goals and objectives for achieving its mission over the subsequent five years. The annual plan
provides details about the Agency's immediate operations, program participants, and programs
and services, and the Agency's strategy for addressing the needs of the community in the
upcoming fiscal year. Staff has developed a plan in proper form and content.
0222phahra
In addition, QHWRA requires the Richfield HRA to create a "Resident Advisory Board" to make
comments on the Plan. Every Section 8 household (350) in Richfield was invited to join the
Advisory Board. Three volunteered to participate. The Advisory Board then met after each
• member had an opportunity to review the Plan: The Resident Advisory Board made no
additional comments to the plan other than to ask for points of clarification.
III. BASIS OF RECOMMENDATION
A. POLICY
• The HRA Board of Commissioners must formally adopt the PHA Plan following a
public-hearing. HUD requires-thE HRA°Chair and Executive~Director to execute
documents.
B. CRITICAL ISSUES
• Failure to approve the PHA Plan will result in receiving anon-compliance status
with the Department of Housing and Urban Development (HUD). "Non-
compliance" violates the contracts the HRA has with HUD and results in a loss of
administrative and assistance funds.
C. FINANCIAL
• Richfield HRA has four contracts for administrative and rent assistance funds
with HUD. Annually, the Richfield HRA receives $1,124,436.00 for rental
assistance payments and $160,664.00 for administrative payments. A current
PHA Plan is a requirement of these contracts.
D. LEGAL
The HAP contracts that we have with HUD have been previously reviewed and
approved by legal counsel. Proper notice was published on December 22, 1999
in the Sun Current of the availability to review the Plan and of the public hearing
to be held concerning plan approval. The publication schedule is in compliance
with HUD regulations.
IV. ALTERNATIVE RECOMMENDATION(S~
• Do not approve the PHA Plan at this time and the Richfield HRA would not be in
compliance with HUD.
V. ATTACHMENTS
• Summary of HRA Five Year and Annual Plan (Attachment A)
• VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• NA
Attachment A
~' Summary
Richfield HRA Five Year 2000-2004
And Annual Plan, Year 2000
February 22, 2000
The five-year plan is a five-page document and the annual PHA plan is a 46-page document.
Known as .HUD-Form #50075;.-these plans provide a standard way for all Public Housing
Authorities (PHA) and the Richfield Housing and Redevelopment Authority (HRA) to report in
checklist form that the PHA complies with all federal regulations.
To summarize:
^ The mission of the Richfield HRA is the same as HUD's: to promote adequate and
affordable housing, economic opportunity and a suitable living environment free from
discrimination.
^ The Richfield HRA goals are to:
- Secure more rental vouchers when available
- Acquire and/or build affordable housing
- Improve program administration (Richfield is already a high performer.)
- Increase program participation by landlords
- Promote client self sufficiency
- Ensure equal opportunity and fair housing standards are achieved.
The plan document then provides a checklist that over several pages, reports to HUD
Richfield's:
- Housing needs;
- Financial resources;
- Policies on program eligibility, selection, and admission.;
- Rent determination policies;
- Operation and management policies;
- Grievance procedures; and
any other topics that have relevance to the administration of a Section 8 voucher program only.
(PHA's that own and manage public housing have additional parts of the checklist to
complete.)
The plan document ends with drug-free certification form and a three page certification form.
that the Richfield HRA does and will comply with all applicable federal regulations as listed on
the certification and signed by the HRA Chair.
The five-year and annual plan in its entirety is always available to the HRA Board and the
public, and the plan is available in the Community Development Department.
AGENDA SECTION: public Hearings
AGENDA ITEM # 5
REPORT # 18
STAFF REPORT
HRA MEETING DATE:
FEBRUARY 22, 2000
REPORT PREPARED BY:
NaME; TITLE
~~.J
REPORT PRESENTER:
LYNNETTE CHAMBERS
-LEASED HOUSING-=SPECIALIST
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY EXECUTIVE
DIRECTOR:
BRUCE NORDQUIST,
ITEM FOR HRA CONSIDERATION:
Conduct a public hearing and approve the Richfield Housing and Redevelopment Authority's
(HRA) Administrative. Plan for the Section 8 Program.
~~ I. RECOMMENDED ACTION: ~~
Conduct and close the public hearing and by motion: Approve the
Housing and Redevelopment Authority's revised administrative plan
.for Richfield's Section 8 Housing Assistance Program.
II. BACKGROUND
The Richfield HRA administers the Section 8 program in accordance with an administrative
plan that establishes local policies and procedures based on Department of Housing and
Urban Development (HUD) requirements. This 141-page plan states the Richfield HRA's
policy on matters for which the HRA has the discretion to establish local policies.
Recently, however, HUD implemented several changes in their administrative plan, requiring
Richfield's plan be revised in accordance with the new regulations. Attached is a Summary
highlighting the major points of the revised Administrative Plan (Attachment A). A copy of the
complete plan is available upon request.
0222adminhra
HOUSING: & REDEVELOPMENT MANAGER
NAME, TITLE
The Richfield Housing Assistance Program (HAP) must administer their Section 8 program in
accordance with the Administrative Plan.
III. BASIS OF RECOMMENDATION
A. POLICY
• The HRA Board of Commissioners must formally adopt the Administrative Plan
and any revisions of the plan following a public hearing.
B. CRITICALISSUES
• The Plan incorporates new changes in regulations mandated by HUD.
• Failure to approve the Administrative Plan will result in staff administering the
program with an Administrative Plan that does not reflect recent regulatory
changes.
C. FINANCIAL
• The Richfield HRA has four contracts with HUD for administrative and rent
assistance funds. Annually, the Richfield HRA receives $1,124,436.00 for rental
assistance payments and $160,664.00 for administering the program. HUD
funding covers the cost of program administration.
• A current and accurate Administrative Plan incorporating HUD regulations is a
requirement of these contracts.
D. LEGAL
The HAP contracts that the HRA have with HUD have been previously reviewed
and approved by legal counsel.
Proper notice was published on December 22, 1999 in the Sun Current of the
availability of the Plan to review and of the public hearing to be held concerning
the approval of the Plan. The notice of public hearing was published according to
HUD regulations.
IV. ALTERNATIVE RECOMMENDATION~S~
• Do not approve the Administrative Plan at this time.
V. ATTACFIMENTS
Proposed policy changes (Attachment A).
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
NA
ATTACFIMENT A,
~ HRA Policy Changes in
Response to Changes in HUD Regulation
February 22, 2000
Richfield HRA has made local policy changes in the revised. plan to comply with regulatory
changes required by HUD. The most notable changes include:
^ The waiting list is organized in a-lottery style-fashion, wi#h two local-preferences.
Previously, a date of application and time of receipt was used. It is proposed that:
1) Families who live or work in the city of Richfield have a preference; and
2) Families who are involuntarily displaced as a result of federal, state or local government
action related to code enforcement, public improvement or development have a
preference.
^ .The waiting list will be purged on an annual basis to ensure the waiting list is current and
accurate.
^ The minimum amount of rent a family is responsible for is $00.00 under the new plan
versus $25.00 previously. There are very few families who ever meet this minimum rent
requirement. Generally, this provision is useful when there is a change of employment.
^ An income check will be completed with Minnesota Department of Economic Security to
verify when families indicate -they have zero income for more than two months.
^ Interim re-examinations will be completed on families who have increases in income of
$200.00 or more per month. Previously, the standard was any increase in income. The
change reduces per client interactive costs while still responsibly managing the housing
subsidies.
^ A procedure has been added to test and to determine that the rents charged by owners of
Section 8 units are reasonable and consistent with rents charged to families living in
unassisted units.
^ Families who owe money to the Richfield HRA will be required to enter into a payment
agreement with Richfield HRA. Undeclared income changes are an example of when a
family may owe the HRA for excess benefits received. The family will be required to pay a
reasonable amount of money ($25.00) monthly for reimbursement. The length of time
required for the family to satisfy the payment agreement will be determined by the total
amount of money owed to the Richfield HRA.
•
AGENDA SECTION:
AGENDA ITEM #
REPORT #
STAFF REPORT
HRA MEETING:
•
FEBRUARY 22, 2000
Consent
4B
17
REPORT PREPARED BY: fV-~TIA MEDVETSKI,
REDEVELOPMENT-SPECIALIST
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 a resolution regarding proposed approval of a modification to the Richfield
Redevelopment Project Area Plan and Interstate-Lyndale-Nicollet (I-L-N) Tax Increment
Financing Plan.
I. RECOMMENDED ACTION:
By .Motion: Approve the resolution modifying the Richfield
Redevelopment Project Area Plan and Interstate-Lyndale-Nicollet Tax
Increment Financing Plan.
II. BACKGROUND
The proposed modification to the Richfield Redevelopment Project Area Plan
(Redevelopment Plan) and the Interstate-Lyndale-Nicollet (I-L-N) Tax Increment
Financing Plan (TIF Plan) contemplates a budget modification to authorize the
issuance of bonds whose funds will be used for activities related to the Lyndale
Gateway Project (Project). Specifically, funds will be used for land acquisition, site
clearance, and relocation activities.
The overall Project consists of approximately 45,000 square feet of commercial
property, 35,000 square feet of office space, 40 units of owner-occupied townhomes
and 161 units of senior apartments. However, bond funds will be used only for
02221LNTif.doc
activities related to the 45,000 square feet of commercial space and 40 units of
.owner-occupied townhomes.
III. BASIS OF RECOMMENDATION
A. POLICY
The HRA and Lyndale .Gateway redevelopers have contractually agreed to the
amount of financial assistance to be provided to make the elements of this project
feasible. This proposed plan amendment will effectuate these contractual
commitments.
B. CRITICAL ISSUES
• Approval of this modification is necessary to implement the contractual
agreements made. between the HRA and the developers for the
commercial and townhouse elements of the project.
C. FINANCIAL
• The TIF Plan identifies a bond issue in an amount not to exceed
$2 million.
• The Sources and Uses Budget on page 4 of the TIF Plan indicates a
total amount of $4,750,000. All sources of revenue, increment and
bond proceeds must be shown in the budget. However, the uses of
revenue also-show payment of bond principal and interest and other
costs. Therefore, sources and uses balance.
• Increment from the Candlewood Hotel project located within`the ILN
TIF District will be used to pay debt service on the bonds:
D. LEGAL
• The Redevelopment Plan and TIF Plan requires HRA approval .prior to
review by the Planning Commission and also prior to the public
hearing and City Council's review and proposed approval on the
plans.
• The Minnesota Tax Increment Financing Act (TIF Act) requires that
prior to the adoption of a modification to a tax increment financing plan
for a redevelopment tax increment financing district, the City must
notify the County Board member representing the affected. area at
least 30 days prior to the publishing the notice of public hearing. On
behalf of the City, staff notified County Commissioner Randy Johnson
by letter on January 25, 2000 of the proposed modification to the
Redevelopment Plan and TIF Plan.
• The TIF Act also requires that prior to the holding of a public hearing
on the modification of a tax increment financing plan, the City must
provide an opportunity to the members of the affected county board to
review the fiscal and economic implications of the proposed modified
or new tax increment financing plan 30 days from the transmittal of the
fiscal implications or until the County Board has presented written
comment on the proposal, whichever is less. On behalf of the City, the
HRA's development consultant, Ehlers & Associates, Inc. notified
Chairperson Johnson, the County Board Members, Superintendent
Barbara Devlin and School Board Members of Independent School
.District No. 280 by letter on February 10, 2000 of the proposed
modification to the Redevelopment Plan and TIF Plan and the fiscal
and economic implications of the plans.
• The Planning Commission will be required to review the modified
Redevelopment Plan and TIF Plan for conformance to the City's
-comprehensive plan. This meeting is-scheduled for February 22,
2000.
• A legal notice for public hearing to be held by the City Council on the
modified .Redevelopment Plan and TIF Plan, is required to be
.published in the local newspaper, at least ten days and not more than
30 days prior to the public hearing. The public hearing is scheduled
for March 13, 2000. Following the public hearing, the City Council will
.act on the request to approve a resolution adopting the modified
Redevelopment Plan and TIF Plan.
• Following approval by the City Council, the modified Redevelopment
Plan and TIF Plan will be filed with the County Auditor and State
Revenue Department.
IV. ALTERNATIVE RECOMMENDATION~S~
• Delay action, with consequence to the Lyndale Gateway Project, on the
proposed modification to the Redevelopment Plan and TIF Plan.
• Do not take action, with consequence to the Lyndale Gateway Project, on the
proposed modification to the Redevelopment Plan and TIF Plan.
V. ATTACHMENTS
• HRA Resolution
Modification to the Redevelopment Plan for the Richfield Redevelopment
Project Area and Tax Increment Financing Plan for the ILN TIF District
(Attachment A).
VI. PRINCIPAL PARTIES EXPECTED AT
MEETING
• .Mark Ruff, Ehlers & Associates, Inc.
HRA RESOLUTION NO.
RESOLUTION MODIFYING THE REDEVELOPMENT PLAN
FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA AND THE
INTERSTATE-LYNDALE-NICOLLET (ILN)
TAX INCREMENT FINANCING PLAN FOR THE
ILN TAX INCREMENT FINANCING DISTRICT
WHEREAS, it has been proposed that the Housing and Redevelopment
.Authority in and for the City of Richfield (the "HRA") modify the Redevelopment Plan for
the Richfield Redevelopment Project Area and modify the Tax Increment Financing Plan
(collectively, the "Modifications") for the Interstate-Lyndale-Nicollet (ILN) Tax Increment
Financing District, to modify the budget for the issuance of bonds for land acquisite, site
clearance and relocation activities related to the Lyndale Gateway Project, all pursuant
to and in conformity with existing law, including Minnesota Statutes, Sections 469.001
through 469.047, and Sections 469.174 to 469.179, inclusive, as amended, all as
reflected in the Modifications and presented for the HRA's consideration; and
WHEREAS, the HRA has investigated the facts relating to the Modifications and
has caused the Modifications to be prepared; and
WHEREAS, the proposed activity as described in the Modifications, in the
opinion of the HRA, would not reasonably be expected to occur solely through private
investment within the reasonable foreseeable future and, therefore, the use of tax
increment financing is deemed necessary; and
WHEREAS, the HRA has. performed or will perform all actions- required by law to
be performed prior to the adoption of the Modifications, but not limited to, notification of
Hennepin County and School District No. 280 having taxing jurisdiction over the
property included in the Districts, a request for review of and written comment on the
Modifications by the City Planning Commission, and a request that the City Council
schedule a public hearing on the Modifications upon published. notice as required by
law.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota as follows:
1. The HRA is not modifying the boundaries of the ILN Tax Increment
Financing District.
2. The HRA reaffirms the findings previously made with respect to the ILN
Tax Increment Financing District.
3. Conditioned upon the approval thereof by the City Council following its
public hearing thereon, the Modifications, as presented to the HRA on this date, are
hereby approved and adopted and shall be placed on file in the Community
,Development Department at the City.
HRA Resolution No. -2-
4. Upon approval of the Modifications by the City Council and the Planning
Commission, the staff, the HRA's advisors and legal counsel are authorized and
directed to proceed with the implementation of the Modifications and for this purpose to
negotiate, draft, prepare and present to the HRA for its consideration all further plans,
resolutions, documents and contracts necessary for this .purpose.
5. Upon approval of the Modifications by the City Council, the. Executive
Director of the HRA is authorized to forward a-copy of the Modifications to the Hennepin
County Auditor and the Minnesota Department of Revenue pursuant to Minnesota
Statutes 469.175, subdivision 2.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota, this 22nd day of February, 2000.
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
•
EXHIBIT A
MODIFICATION TO THE REDEVELOPMENT PLAN
FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA
AND
INTERSTATE-LYNDATE-NICOLLET (ILN) TAX INCREMENT FINANCING PLAN
. FOR THE ILN TAX INCREMENT FINANCING DISTRICT
•
•
..MODIFICATION TO_THE
TAX INCREMENT FINANCING PLAN
FOR THE
ILN TAX INCREMENT FINANCING DISTRICT
Housing and Redevelopment Authority in and for the City of Richfield
City of Richfield, Minnesota
Hennepin County, Minnesota
J
Public Hearing: March 13, 2000
Adoption:
Prepared by:
EHLERS AND ASSOCIATES, INC.
3060 Centre Pointe Drive
Roseville; MN 55113
Phone: (651) 697-8500
Fax: (651) 697-8555
• TABLE OF CONTENTS
(provided for references purposes only)
MODIFICATION TO THE REDEVELOPMENT PLAN FOR
THE RICHFIELD REDEVELOPMENT PROJECT AREA ............................... l
Introduction ..................................:..........:....... ......... 1
Statement of Public Purpose ....................... .................... ...... 1
Statutory.Authority .............................. ..:........... ....... ... 1
Statement of Goals and Objectives ....................:..:.................. , . '.... l
Estimated Public Costs ..................... ..........:....................... 1
Boundary of the Richfield Project Area, Parcels in Acquisition, and Legal Description ...... 1
MODIFICATION N0.7 TO TAX INCREMENT FINANCING PLAN
FOR ILN TAX INCREMENT FINANCING DISTINCT ................ ......... .. 2
Introduction.......... ............. .....:...................... ..:..... 2
Boundary of the ILN Tax Increment Financing District ...... ...........:........ 2
Parcels Identified for Acquisition ............................................:.... 3
Estimated Project Costs .... ...................:.......:........... .......... 4
Bonded Indebtedness ......................................:... ...:.......... 4
• BOUNDARY MAP OF RICHFIELD REDEVELOPMENT PROJECT AREA AND
THE ILN TAX INCREMENT FINANCING DISTINCT ................................ A-1
•
Modification to the Redevelopment Plan for
the Richfield Redevelopment Project Area
March 13, 2000
Introduction
The following text represents a modification to the Redevelopment Plan for the Richfield Redevelopment Project
Area. The Modified Redevelopment Plan represents a continuation of the goals and objectives set forth in the
original Plan. Generally, the substantive changes to the current Modification include the authority to spend tax
increments generated from the-ILN Tax Increment Financing District in the Richfield•Redevelopment Project
Area. For further information, a review of the Redevelopment Plan for Richfield. Redevelopment Project Area
dated June 14,1993 or the most recent Modification to the. Redevelopment Plan for the Richfield Redevelopment
Project Area dated November 22, 1999 is recommended...
Statement of Public Puruose
See also. the Statement of Public Purpose. found in Section B of the Redevelopment Plan for Richfield
Redevelopment Project Area, dated June 14, 1993.
Statutory Authority
See also the Statutory Authority found in Section C of the Redevelopment Plan for the Richfield Redevelopment
• Project Area, dated June 14, 1993.
Statement of Goals and Objectives
Additional goals and objectives can be found in Section D of the Redevelopment Plan for Richfield
Redevelopment Project Area, dated June 14, 1993.
Estimated Public Costs
This modification authorizes the HRA to expend tax increment from the ILN Tax Increment Financing District
for qualified activities identified in the budget of the Modification to the ILN Tax Increment Financing Plan.
Boundary of the Richfield Project Area Parcels in Acquisition and Legal Description
The boundary for Richfield Redevelopment Project Area is not being modified from the November 22, 1999
Modification.
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City of Richfield Modification to the Plan for the ILN Tax Increment Financing District 1
Modification No: 7 to Tax Increment Financing Plan
for ILN Tax Increment Financing District
March 13, 2000
Introduction
The following text represents a modification to the Tax Increment Financing Plan for the ILN Tax Increment
Financing District. The Modifications to the ILN Tax Increment Financing Plan represent a continuation of the
goals and objectives set forth in the original Tax Increment Financing Plan. Generally, the substantive changes
_. _ _,
to the current Modification include the identification of additional parcels for acquisition, the authority to spend
tax increment generated from the ILN Tax Increment Financing District in the Richfield Redevelopment Project
Area, and the authority to issue bonds.
For further information, a review of the Tax Increment Financing Plan for the ILN Tax Increment Financing
District adopted October 21,1985, and modified November 25,1985;.January 12,1987;September 18,1989; May
17, 1993; March 24, 1994; October 21, 1996; and November 9, 1998 is recommended.
Boundaries of the ILN Taxlncrement Financing District
The boundaries of the ILN Tax Increment Financing District are not being modified with this. Modification.
However, the map of the ILN Tax Increment Financing District has been adjusted to reflect the parcels that have
been previously decertified by Hennepin County on July 13, 1999. A map of the Modified ILN Tax Increment.
Financing District is included in Appendix A.
City of Richfield Modification to the Plan for the ILN Tax Increment Financing District 2
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Parcels Identified for Acquisition
The following parcels in the Lyndale Gateway Tax Increment Financing District and adjacent rights-of--way are
being identified for acquisition with increment funds from the ILN Tax Increment Financing District.
Lyndale Gateway
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Address
7600 Lyndale
7608 Lyndale
7614-16-18 Lyndale
7620-26 Lyndale
7628 Lyndale
7630 Lyndale
7632 Lyndale
7634-36 Lyndale
7638-40 Lyndale
7642-42a Lyndale
7644-44-1/2 Lyndale
760.1 Aldrich
-7609 Aldrich
7615 Aldrich
7621 Aldrich
7627 Aldrich
7633 Aldrich
7639 Aldrich
7601 Lyndale
7609-11 Lyndale
7.613-27 Lyndale.
7629-33 Lyndale
7645 Lyndale
7600 Garfield
7608 Garfield
7614 Garfield
7620 Garfield
7626 Garfield
7632 Garfield
7638 Garfield
7639 Garfield
7633 Garfield
7627 Garfield
7621 Garfield
7615 Ga~eld
7609 Garfield
7601 Garfield
City of Richfield Modification to the Plan for the ILN Tax Increment Financing District
PID
33-028-24-44-0036
33-028-24-44-0037
33-028-24-44-0038
33-028-24-44-0039.
33-028-24-44-0041
33-028-24-44-0042
33-028-24-44-0040
33-028-24-44-0043
33-028-24-44-0044
33-028-24-44-0045
33-028-24-44-0046
33-028-24-44-0056
33-028-24-44-0055
33-028-24-44-0054
33-028-24-44-0053
33-028-24-44-0052.
33-028-24-44-0051
33-028-24-44-0050
34-028-24-33-0078
34-028-24-33-0077
34-028-24-33-0084
34-028-24-33-0074
34-028-24-33-0073
34-028-24-33-0065
34-028-24-33-0066
34-028-24-33-0067
34-028-24-33-0068
34-028-24-33-0069
34-028-24-33-0070
34-028-24-33-0071
34-028-24-33-0058
34-028-24-33-0059
34-028-24-33-0060
34-028-24-33-0061
34-028-24-33-0062
34-028-24-33-0063
34-028-24-33-0064
3
Estimated Project Costs
The City is proposing a modified budget for ILN TIF District which will include funds for land acquisition, site
clearance,and relocation activities for the Lyndale Gateway Project. The project consists of approximately 45,000
square feet of commercial property and 40 units of owner occupied town homes.
This modification authorizes the HRA to expend tax increment from the ILN Tax Increment Financing District
for qualified activities identified in the budget of any of the Tax Increment Financing Districts and-the Richfield.
Redevelopment Project Area.
Totals as Modified Additional for Totals as Modified
Sources of Funds November 9,1998 Lyndale Gateway March 13, 2000
Tax increment revenue $1,382,000 $2,750,000 $4,132,000
Bond proceeds $1,000,000 $2,000,000 $3,000,000
Total Sources of Funds $2,382,009 $4,75Q,000 $7,132,009
Uses of Funds
Land/building acquisition $42,105,000 .$1,400,000 $43,505,000
Site imp./prep. costs $65,000 $0 $65,000
Streets and sidewalks $900,000.. $0 $900,000
Loan/note int. payments $32,800,000 $0 $32,800,000
Bond Principal Payments $0 $2,000,000 $2,000,000
. Bond Interest $0 $1,300,000 $1,300,000
Administrative costs $8,430,000. $50,000 $8,480,000
Bond deposit $0 $0 $0
Total Uses of funds $84,300,000 $4;750,000 $89;050,000'
Bonded Indebtedness _.
Public improvement costs, acquisition, public utilities and site improvement costs, interest costs and other costs
outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments: The City
or HRA reserves the right to use other sources of revenue legally applicable to the Modification to the
Redevelopment Plan and the Plan, including, but not limited to, special assessments, general property taxes, state
aid for road maintenance and construction, proceeds from the sale of land, other contributions from the developer
and. investment income, to pay for the estimated public costs.
The City or HRA intends to issue general obligation bonds with a principal amount not to exceed $2,000,000.
The total principal amount of bonded indebtedness or other indebtedness related to the use of tax increment
financing will not exceed without a modification to the Plan pursuant to applicable statutory requirements.
This provision does not obligate the City or HRA to incur debt. The City or HRA will issue bonds or incur other
debt only upon the determination that such action is in the best interest of the City. The City or HRA may also
finance the activities to be undertaken pursuant to the Plan through loans from funds of the City or HRA or to
reimburse the developer on a "pay-as=you-go" basis for eligible activities paid for by the developer.
City of Richfield Modification to the Plan for the ILN Tax Increment Financing District 4
. APPENDIX A
BOUNDARY MAP OF RICHFIELD REDEVELOPMENT PROJECT AREA AND
THE ILN TAX INCREMENT FINANCING DISTRICT
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City of Richfield Modification to the Plan for the ILN Tax Increment Financing District A-I
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AGENDA SECTION:
AGENDA ITEM #
REPORT #
STAFF REPORT
~ ~ HRA MEETING DATE:
FEBRUARY 22, 2000
Consent
4A
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REPORT PREPARED BY:
REPORT PRESENTER:
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY EXECUTIVE
DIRECTOR:
d
ANDREW G. GILLETT,
COMMUNITY DEVELOPMENT TECHNICIAN
NaNrE TITLE
BRUCE PALMBORG,
- - __
ITEM FOR HRA CONSIDERATION:
Authorization to issue Certificates of Completion to The Windwood Company, Inc. for 6805
Irving. and 6824 Park Avenues, Gerold Bros. Construction, Inc. for 7133 Lyndale Avenue,
Thomas Allen, Inc. for 6228 Pleasant Avenue, and Steven Marlin Grant Homes, Inc. for 7520
Colfax Avenue.
I. RECOMMENDED ACTION:
By Motion: Authorize the Chair and Executive Director to execute the
Completion Certificates in accordance with the attached resolution.
II. BACKGROUND
The HRA authorized development of the above referenced properties. The
development agreements provide for the issuance of a Certificate of Completion when
construction is completed. (A sample certificate is attached.) The homes have been
completed. -The builders have requested the Completion Certificates upon completion
and closing. Staff is anticipating these requests and wants to respond in a timely
manner upon verification of completion.
III. BASIS OF RECOMMENDATION
0222certofcompletion
COMMUNITY DEVELOPMENT DIRECTOR
NAA~', TITLE
A. POLICY
• The HRA must authorize the issuance of Certificates of Completion.
E
j. CRITICAL ISSU S
• Construction has been completed and the Inspections Division is prepared to
issue the Certificates of Occupancy. Temporary Certificates of Occupancy
will be issued in cases where weather conditions limit exterior completion.
• The builders have performed in accordance with construction agreements
and will seek the issuance of Certificates of Completion.
• ...Release of Letters.of.Credit_is contingent upon.xeceip# of~escrows from
contractors to cover completion of landscaping and any unfinished concrete
work.
C. FINANCIAL
• No significant financial issue.
D. LEGAL
• No significant legal issue.
IV. ALTERNATIVE RECOMMENDATION~S~
• Do not issue Certificates of Completion at this time.
V. ATTACHMENTS
• HRA Resolution
• Sample Certificate of Completion (Attachment A)
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• City Staff
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HRA RESOLUTION NO.
RESOLUTION AUTHORIZING ISSUANCE OF CERTIFICATES OF COMPLETION FOR
NEWLY CONSTRUCTED RESIDENTIAL PROPERTY AT 6805 IRVING, 6824 PARK, 7133
LYNDALE, 6228 PLEASANT AND 7520 COLFAX AVENUES
WHEREAS, the Richfield Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (HRA) entered into contracts with The Windwood Company, Inc., Gerold
Bros. Construction, Inc., Thomas Allen Inc. and Steven Marlin Grant Homes, Inc.; and
WHEREAS, the new homes located at 6805 Irving, 6824 Park, 7133 Lyndale, 6228
Pleasant-and 7520 Colfax Avenues are-completed:
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority
in and for the City of Richfield,
1. The Certificates of Completion for 6805 Irving, 6824 Park, 7133 Lyndale, 6228
Pleasant and 7520 Colfax Avenues can be issued.
2. Any performance securities can be released when the Completion
Certificates are issued.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 22nd day of February, 2000.
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
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Attachment A
By
By
CERTIFICATE OF COMPLETION
The undersigned hereby certifies that (Builder) has fully and
completely complied with its obligations under Article IV of that document entitled "Contract for
Private Development", between the Housing and Redevelopment Authority in and for the City
of Richfield, Minnesota and (Builder) dated (Date) filed
(Date) as Document No. (Number) with respect to construction
of the Improvements at (Address) ,legally described as (Legal
Description) in accordance with the approved construction plans and is
released and forever discharged from its obligations to construct under such above-referenced
Article.
Dated:
STATE OF MINNESOTA )
SS
COUNTY OF HENNEPIN )
Its Chairperson
Its Executive Director
The foregoing instrument was acknowledged before me this day of
19 , by
and the Chairperson and Executive Director of
the Housing and Redevelopment Authority in and for the City of Richfield, a public body
corporate and politic under the laws of the State of Minnesota on behalf of the public body
corporate and politic.
Notary Public
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This instrument was drafted by:
The Housing and Redevelopment Authority
in and for the City of Richfield
6700 Portland Avenue South
Richfield, MN 55423
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD