092115CompleteAgenda CITY OF�RICHFIELD, MINNESOTA
MONDAY, SEPTEMBER 21, 2015
� RICHFIELD MUNICIPAL CENTER
6700 PORTLAND AVENUE
REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
COUNCIL CHAMBERS
7:00 P.M. �
AGENDA
Call to order
1. Approval of the minutes of the (1) Special Concurrent City Council, HRA and Planning
Commission Worksession of August 11, 2015 and (2) Regular HRA Meeting of August
17, 2015
2. HRA approval of the 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 on these items
is necessary. However, any HRA Commissioner may request that ar� item be removed
from the Consent Calendar and placed on the regular agenda for HRA discussion and
action. All items listed on the Consent Calendar are recommended for approval.
A. Consideration of the approval of a resolution accepting contributions for the 2015
Richfield in Bloom Award S.R. No. 26
B. Consideration of the approval of a proposed adjustment of payment standard for the
Section 8 Rent Assistance Program S.R. No. 27
4. Public hearing and consideration of a resolution authorizing the sale of 7309-10tn
Avenue to Key Land Homes and a Contract for Private Development with Key Land
Homes for the construction of a single family home under the Richfield Rediscovered
Program
Staff Report No. 28
5. Consideration of the Richfield HRA Tax Increment District status update
Staff Report No. 29
6. Consideration of a Preliminary Development Agreement and a Right-of-Entry
Agreement between Mesaba Capital Development, LLC and the Richfield HRA relating
to the proposed development of the former City public works site
Staff Report No. 30
7. Consideration of a proposal by JLG Architects to produce a Cedar Corridor Master
Plan Update
Staff Report No. 31
8. Consideration of a Transformation Home Loan application submitted by Commissioner
Debbie Goettel of 6525 James Avenue
Staff Report No. 32
9. HRA discussion items
10.Executive Director report
11.Claims and payroll
Adjournment �
Auxiliary aids for individuals with disabilities are availabte upon request. Requests must
be made at least 96 hours in advance to the City Clerk at 612-861-9738.
CITY COUNCIL MINUTES
Richfield, Minnesota
�'— � Special Concurrent
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'.�"--�� Housin and Redevelopment Authority,
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9
� City Council and
Planning Commission Worksession
August 11 , 2015
CALL TO ORDER
The concurrent worksession was called to order by Mayor Goettel at 6:15 p.m. in the
Bartholomew Room.
HRA Members Mary Supple, Chair; David Gepner; Pat Elliott; and Debbie Goettel.
Present:
HRA Member poris Rubenstein.
Absent:
Council Members Debbie Goettel, Mayor; Edwina Garcia; Pat Elliott; Michael Howard; and
Present: Tom Fitzhenry.
Planning Commission Rick Jabs, Chair; Sean Hayford Oleary; Erin Vrieze Daniels; Susan
Members Present: Rosenberg; Daniel Kitzberger; and Gordon Vizecky.
Planning Commission Charles Standfuss.
Member Absent:
Staff Present: Steven L. Devich, City Manager/Executive Director; Karen Barton, Acting
Community Development Director; Melissa Poehlman, City Planner; and
Cheryl Krumholz, Executive Coordinator.
Item #1 FOR SENIOR HOUSING'DEVELOPMENT (COUNCIL ME O' NO. 74/HRA M MO
NO. 28)
Mark Nelson, United Properties, presented the preliminary site plan options for a multi-family
senior housing project on the St. Richard's Catholic Church property, 7540 Penn Avenue.
There was discussion regarding the location of the project on the property to minimize the
impacts on single family homes to the west and the need for senior housing.
City Planner Poehlman explained rezoning will be necessary to allow multi-family use on this
site.
The consensus was to move forward with the proposed project.
Della Kolpin, Mesaba Capital, presented the preliminary site plans for a multi-family senior
housing project on the former City public works site, 7644 Pillsbury Avenue/211 West 76th Street.
Special Worksession Minutes -2- August 11, 2015
There was discussion regarding the use of the site for senior housing and addressing
neighborhood concerns.
City Planner Poehlman discussed the Comprehensive Plan and rezoning
Ms. Kolpin stated this is a TIF District and they will be working with staff on financing.
The consensus was to move forward with the proposed project.
The concurrent worksession was adjourned by unanimous consent at 6:57 p.m.
Date Approved: September 21, 2015.
Mary B. Supple
HRA Chair
Cheryl Krumholz Steven L. Devich
Executive Coordinator Executive Director
�_ HOUSING AND REDEVELOPMENT
� '� � � �, � l AUTHORITY MEETING MINUTES
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� Regular Meeting
August 17, 2015
CALL TO ORDER
The meeting was called to order by Chair Supple at 7:00 p.m.
ATTENDANCE
HRA Members Mary Supple, Chair; David Gepner(arrived at 7:05 p.m.); Debbie Goettel;
Present: and Pat Elliott.
HRA Members Doris Rubenstein
Absent:
Staff Present: Steven L. Devich, Executive Director; John Stark, Community Development
Director; Chris Regis, Finance Manager; and Myrt Link, Community
Development Accountant.
Item #1 APROVAL OF THE MINUTES OF THE (1) REGULAR HRA MEETING OF JULY 20,
2015
M/Goettel, S/Elliott to approve the minutes.
Motion carried 3-0.
Item #2 HRA APPROVAL OF AGENDA
M/Elliott, S/Goettel to approve the aqenda.
Motion carried 3-0.
Item #3 CONSIDERATION OF THE RESOLUTIONS APPROVING THE 2016 PROPOSED
HRA BUDGET AND TAX LEVY AND THE 2015 REVISED HRA BUDGET
S.R. NO. 25
Executive Director Devich reviewed Staff Report No. 25.
Community Development Director Stark reviewed a PowerPoint presentation highlighting
the most significant aspects of the 2015 revised and 2016 proposed HRA budgets and the
proposed 2016 tax levy.
Commissioner Goettel asked that goals be tied to the HRA budget.
HRA Meeting -2- August 17,2015
Chair Supple asked how the Housing Visioning Committee was funded.
Community Development Director Stark responded that it was covered in existing salaries.
Commissioner Gepner asked about the basis for the tax levy.
Finance Manager Regis explained the base.
M/Goettel, S/Elliott that the followinq resolutions be approved:
HRA RESOLUTION NO. 1207
RESOLUTION APPROVING PROPOSED 2016 HOUSING AND REDEVELOPMENT AUTHORITY
BUDGET AND CERTIFYING THE 2016 TAX LEVY
This resolution appears as HRA Resolution No. 1207.
HRA RESOLUTION NO. 1208
RESOLUTION AUTHORIZING REVISION OF THE 2015 BUDGET OF THE
HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD
This resolution appears as HRA Resolution No. 1208.
Motion carried 4-0.
Item #4 HRA DISCUSSION ITEMS
Chair Supple announced that she attended the Cedar Point neighborhood meeting
conducted by the Boisclair Company. She stated that it was very well attended.
Item #5 EXECUTIVE DIRECTOR REPORT
None.
Item #6 CLAIMS AND PAYROLL
M/Goettel, S/Gepner that the followinq claims and pavrolls be approved:
U.S. BANK 08/17/15
Section 8 Checks: 126940-127023 157,534.21
HRA Checks: 32373-32402 $ 31,232.34
TOTAL $ 188,766.55
Commissioner Gepner asked if the rebates were for energy efficiency.
Community Development Director Stark responded that they were.
Motion carried 4-0.
ADJOURNMENT
HRA Meeting -3- August 17,2015
The meeting was adjourned by unanimous consent at 7:28 p.m.
Date Approved: September 21, 2015
Mary B. Supple
HRA Chair
Steven L. Devich Steven L. Devich
Acting City Clerk Executive Director
AGENDA ITEM#: 3A
REPORT#: 26
STAFF REPORT
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AUTHORITY MEETING
SEPTEMBER 21, 2015
REPORT PREPARED BY: JULIE URBAN/KATE AITCHISON, HOUSING
SPECIALIST
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REPORT PRESENTER: KAREN BARTON, ASSISTANT COMMUNITY
DEVELOPMENT D�IZECTOR
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DEPARTMENT DIRECTOR REVIEW: �
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ITEM FOR HRA CONSIDERATION:
Consideration of a resolution accepting contributions for the 2015 Richfield in Bloom Award.
I. RECOMMENDED ACTION:
By Motion: Approve a resolution allowing the acceptance of
monetary support solicited for the 2015 Richfield in Bloom Award.
II. EXECUTIVE SUMMARY •
The Community Development Department solicited donations to be used as prizes
for the 2015 Richfield in Bloom Award. Two businesses provided funds and gift
certificates for the 2015 awards. Richfield/Bloomington Credit Union donated
$150.00 f.or gift cards. Wagner's Garden Center donated $75 in three $25.00 gift
cards. State law requires the Housing & Redevelopment Authority (HRA) to receive
the funds by resolution.
III. BASIS OF RECOMMENDATION
A. BACKGROUND
• For 16 years, the Community Development Department has offered awards
� to homeowners who beautify their neighborhood with exceptional gardens
and landscaping.
092115 Acceptance off RIB Donations.docx
• Every year, the Department solicits donations from local businesses to offer
as prizes to the winners.
B. PoLICY
• The Administrative Services Department issued a memo on
November 9, 2004 requiring that all grants and restricted donations to
departments be received by resolution and passed in accordance with
Minnesota Statute 465.03.
C. CRITICaL Tnv��rrG IssuEs
• Donations have been received and used for the program as indicated
by the donors.
D. FINANCIAL
• The financial donations have been deposited in the Fund supporting
the designated program.
• RBCU donated $150.00, which staff used to purchase gift cards from
Menard's:
• Wagner's Garden Center donated three $25 gift cards ($75 total).
E. LEGAL
• Minnesota Statute 465.03 requires that every acceptance of a grant or
devise of real or personal property on terms prescribed by the donor
be made by resolution.
IV. ALTERNATNE RECOMMENDATION(S�
• Return the donations to the donors.
V. ATTACHNIENTS
• Resolution approving the acceptance of donations.
• List of donations and specified areas for the donation to be applied.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
RESOLUTION NO.
RESOLUTION AUTHORIZING RICHFIELD COMMUNITY DEVELOPMENT
DEPARTMENT TO ACCEPT DONATIONS FROM THE LISTED BUSINESSES FOR
DESIGNATED USES
WHEREAS, the Community Development Department, received checks and gift
cards from the following for the 2015 Richfield in Bloom Award;
Richfield Bloomington Credit Union
Wagner's Greenhouses
and,
WHEREAS, Minnesota Statute requires every acceptance of a grant or devise of
real or personal property on terms prescribed by the donor be made by resolution; and,
WHEREAS, the donated funds will be used towards the designated events
sponsored by Richfield Community Development Department.
NOW, THEREFORE, BE IT RESOLVED that the Director of Community
Development will accept and distribute the donations as specified.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 21st day of September, 2015. �
Mary B. Supple, Chairperson
ATTEST: �
Doris Rubenstein, Secretary
Checks or Gift Cards Received
2015
Business Name Amount of Donation Desi nation
Richfield/Bloomington �150.00 Richfield in Bloom
Credit Union (RBCU) (used for gift cards) Award
Wagner's Greenhouses �75.00 Richfield in Bloorr�
(three $25 gift cards) Award
Total: $225.00
AGENDA ITEM#: 3B
REPORT#: 27
STAFF REPORT
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SEPTEMBER 21, 2015
REPORT PREPARED BY: LYNNETTE CHAMBERS, MULTIFAMILY
HOUSING COORDINATOR
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REPORT PRESENTER: ��N BARTON, ASSISTANT COMMUNITY
DEVELOPMENT DIlZECTOR
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ITEM FOR HRA CONSIDERATION:
Consideration of a proposed adjustment of payment standard for the Section 8 Rent
Assistance pro ram.
I. RECOMMENDED ACTION:
By Motion: Approve the adjustr�nent of Payment Standard for the
Section 8 Rent Assistance ro ram.
II. BACKGROUND
The Section 8 program is administered in accordance with the Housing and
Redevelopment Authority's (HRA) Administrative Plan (Plan). According to the Plan
and the Department of Housing and Urban Redevelopment (HUD) regulations, the
voucher program provides financial assistance based on unit bedroom size. Clients
pay a minimum of 30 percent of their income towards rent. On an annual basis
HUD establishes a Fair Market Rent (FMR). The allowable FMR is expressed as a
specific percentile point within the rent distribution of standard-quality rental housing
units.
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Individual HRA's are allowed to select a payment standard within 90% to 110% of
HUD's FMR. The selection of the payment standard should assure that a sufficient
supply of rental housing is available to program participants. The Richfie4d HRA
conducts a rental survey on an annual basis to help in determining an appropriate
Payment Standard. Currently, the survey results indicate that the Richfield HRA
should adopt a payment standard that is 102% - 106% of the FMR established by
HUD.
The new Payment Standards would be effective December 1, 2015. The attached
table clarifies the changes being proposed. The last adjustment made by the HRA
was June 1, 2014.
III. BASIS OF RECOMMENDATION
A. PoLICY
• The HRA must approve increases in the Payment Standard for the
Section 8 program.
• Section 8 participants will be able to choose from a larger selection of
affordable housing units and may receive some immediate rent relief
on a case by case basis.
• HUD provides sufficient federal assistance to cover these adjustments
in the Payment Standards and has approved the increase.
• Without an increase in the Payment Standard, many Section 8
participants will be unable to find housing and keep up with changing
rents.
• Potential changes in Federal law impact the financial resources
available to the program if the HRA does not remain current with the
FMR.
B. CRITICAL TIMING ISSUES
• N/A
C. FINANCIAL
• An increase in the Payment Standard will decrease the rent burden for
Section 8 participants.
• HUD provides sufficient funding to cover the increase.
D. LEGAL
• The contract between the HRA and HUD provides for FMR
adjustments in accordance with federal regulations.
IV. ALTERNATNE RECOMMENDATION(S�
• Do not change the Payment Standard at this time.
V. ATTACHMENTS
• Proposed modifications to voucher program.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
Pronosed Modi�cations to Voucher Program
Current Payment Standard
O BDR 1 BDR 2 BDR BDR 4 BDR 5 BD
608 760 975 1340 1550 1720
Payment Standard Proposed- Effective December 1, 2015
O BDR 1 BDR 2 BDR 3 BDR 4 BDR BD
660 850 1070 1470 1725 1860
AGENDA ITEM#: 4
REPORT#: 28
STAFF REPORT
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AUTHORITY MEETING
SEPTEMBER 21, 2015
REPORT PREPARED BY: JULIE URBAN/KATE AITCHISON,HOUSING
SPECIALISTS
Nan�G TITLc
REPORT PRESENTER: ��N BARTON, ASSISTANT COMMUNITY
DEVELOPMENT DIIZECTOR
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DEPARTMENT DIRECTOR REVIEW: ;�
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ITEM FOR�IlZA CONSIDERATION:
Public hearing and consideration of a resolution authorizing the sale of 7309 10th Avenue to
Key Land Homes and a Contract for Private Development with Key Land Homes for the
construction of a single famil home under the Richfield Rediscovered Program.
I. RECOMMENDED ACTION:
Conduct and close the public hearing and by motion:
1. Approve a resolution authorizing the sale of 7309 10th Avenue to
Key Land Homes, and;
2. Authori�e execution of a Contract for Private Development
between the Housing and Redevelopment Authority and Key Land
Homes for the redevelopment of 7309 10th Avenue.
II. EXECUTIVE SUMMARY
Key Land Homes (the Builder) is applying to purchase the Housing and
Redevelopment Authority (HRA) owned lot at 7309 10th Avenue to construct a new
single family home. The new home would be a two-story home with three
bedrooms, two-and-a-half bathrooms and an attached three-car garage. The new
home will be approximately 2,895 square feet with an end-value of $390,000. Upon
completion, the home wifl be sold to Travis and Autumn Ryan, current residents of
092115 RR Lot Sale 7309 10th Avenue.docx
Richfield. This is the first time Key Land Homes has participated in the Richfield
Rediscovered program.
III. BASIS OF RECOMMENDATION
A. BACKGROUND
• The HRA purchased 7309 10th Avenue in 2015 for $94,000, and the
existing home was recently abated and demolished.
B. PoLICY
• The proposed project meets the objectives of the Richfield
Rediscovered Program:
o Removes substandard, functionally obsolete housing and
eliminates its blighting influence.
o Provides new, higher valued housing.
o Alleviates shortage of housing choice for families.
• The project meets the Housing Design and Site Development Criteria,
as defined in the Richfield Rediscovered Guidelines. Several features
are incorporated to address the design criteria:
o The appearance of the three-car garage is minimized by
use of a narrower garage door and driveway and a wider
porch.
o The height is minimized through varying roof heights and
use of a hip-style roof (consistent with the roof style of
neighboring properties).
o The impact of the height on neighboring properties is
minimized through larger setbacks: 35-foot front setback,
10 and 17-foot side setbacks.
C. CRITICAL TIMING ISSUES
• The Contract requires the Builder to close on the property by
November 1, 2015 and to complete construction by June 1, 2016.
• A provision has been added to all Richfield Rediscovered contracts
authorizing staff the ability to grant an extension to these deadlines for
a period up to six months.
D. FINANCIAL
• The HRA acquired the 75-foot wide property and structure in 2015 for
$94,000.
• The appraised value of the property as a vacant lot is $58,000.
• Under the terms of the Contract, the $58,000 will be due at closing.
• Under the terms of the Contract, the minimum market value of the
house will be $390,000.
• Under the terms of the Contract, the Builder must submit a $10,000
cash escrow to be held until construction is completed as provided in
the Contract.
E. LEGAL
• The HRA Attorney has reviewed the terms of the Contract for Private
Redevelopment.
• Notice of the public hearing was published in the Sun Current on
September 10, 2015.
• Mailed notification is not required on this item; however, a courtesy
notice was mailed to residents within 350 feet of the property.
IV. ALTERNATNE RECOMMENDATION�S�
• Do not execute the Contract for Private Development.
• Amend the Contract for Private Development removing the requirement for a
driveway easement.
V. ATTACHMENTS
• Resolution
• Contract for Private Development
• Elevations and floor plans of proposed home
• Site plan of proposed home
• Landscape plan
• Photo of 7309 10th Avenue
VI. PRINCII'AL PARTIES EXPECTED AT MEETING
• Travis Ryan, homeowner
• Amy Meissner, Key Land Homes
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT
7309 10TH AVENUE TO KEY LAND HOMES
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (HRA) desires to develop certain real property pursuant to and in
furtherance of the Richfield Rediscovered Program adopted by the HRA, said real property
being described as:
Address: 7309 10th Avenue South
Legal: Lot 15, Block 4, "Fallden's Third Addition"
WHEREAS, the HRA is authorized to sell real property within its area of operation
after a public hearing; and
WHEREAS, the purchaser of the described property has been identified as Endres
Custom Homes, Inc., and
WHEREAS, a Contract for Private Development has been prepared, and the sale
price of 7309 10th Avenue is $58,000 with performance security in the amount of$10,000;
and
WHEREAS, a public hearing has been held after proper public notice.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota:
1. A public hearing has been held and 7309 10th Avenue is authorized to be sold
for $58,000.00 to Key Land Homes; and
2. The Chairperson and Executive Director are authorized to execute a Contract for
Private Development and other agreements as required to effectuate the sale to
the Builder.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 21 st day of September, 2015.
Mary B. Supple, Chair
ATTEST:
Doris Rubenstein, Secretary
CONTRACT FOR PRIVATE DEVELOPMENT
Between
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD
and
Key Land Homes
for property located at
730910th Avenue South
This Instrument Drafted by:
The Housing and Redevelopment Authority
in and for the City of Richfield
6700 Portland Avenue South
Rich�eld, Minnesota 55423
Telephone: (612) 861-9760
401253v8 CBR RC125-65
CONTRACT FOR PRIVATE DEVELOPMENT
THIS AGREEMENT, made and entered into as of this day of ,
2015, by and between the Housing and Redevelopment Authority in and for the City of Richfield,
a public body corporate and politic under the laws of the State of Minnesota, having its principal
office at 6700 Portland Avenue, Richfield, Minnesota(HRA) and Key Land Homes (Builder).
WITNESSETH:
WHEREAS, the City of Richfield (City) and the HRA have previously created and
established a Redevelopment Project (Project) pursuant to the authority granted in Minnesota
Statutes, Sections 469.001 through 469.047 (collectively,the Act); and
WHEREAS, pursuant to the Act, the City and the HRA have previously adopted a
redevelopment plan for the Project(Redevelopment Plan); and
WHEREAS, in order to achieve the objectives of the Redevelopment Plan and
particularly to make specified land in the Project available for development by private enterprise
for and in accordance with the Redevelopment Plan, the HRA has determined to provide
substantial aid and assistance to finance development costs in the Project; and
WHEREAS, the Builder has proposed a development as hereinafter defined within the
Project which the HRA has determined will promote and carry out the objectives for which the
Project has been undertaken, will assist in carrying out the obligations of the Redevelopment
Plan, will be in the vital best interests of the City and the health, safety and welfare of its
residents and is in accord with the public purposes and provisions of the applicable state and
local laws and requirements under which development in the Project has been undertaken and is
being assisted.
NOW, THEREFORE, in consideration of the mutual covenants and obligation of the
HRA and the Builder, each party does hereby represent, covenant and agree with the other as
follows:
ARTICLE I.
DEFINITIONS. EXHIBITS, RULES OF INTERPRETATION
Section 1.1. Definitions. In this Agreement, the following terms have the meaning
given below unless the context clearly requires otherwise:
Buildin� Plans. Detailed plans for the Improvements to be constructed on the Property,
as required by the local building official for issuance of a building permit.
401253v8 CBR RC125-65
1
Construction Plans. The construction plans approved by the HRA pursuant to Section
4.1 of this Agreement. The Construction Plans include a schedule for construction of the
Improvements, preliminary plans and schematics of the Improvements to be constructed, and a
landscaping plan.
Development. The Property and the Improvements to be constructed thereon according
to the Construction Plans approved by the HRA.
Event of Default. Event of Default has the meaning given such term in Section 8.1.
Guidelines. The Richfield Rediscovered Program Guidelines Lot Sale Program, revised
February 18, 2014, and attached as Exhibit B to this Agreement.
Homeowner. The individuals purchasing the Property from Builder and who will be
living in the home following purchase.
Imnrovements. Each and all of the structures and site improvements constructed on the
Property by the Builder, as specified in the Construction Plans to be approved by the HRA.
Minimum Market Value. $390,000, which is the minimurn market value for the land
and Improvements as confirmed by the Hennepin County Assessor.
Mort�a�e. A mortgage obtained by the Builder from a third party lender in accordance
with Section 7.2 of this Agreement.
Pro er . The real property legally described as:
Lot 15, Block 14,Fallden's Third Addition,Hennepin County, MN
Located on land having a street address o£
730910th Avenue South
Unavoidable Delavs. Delays which are the direct result of strikes, labor troubles, fire or
other casualty to the Improvements, litigation commenced by third parties which results in delays
or acts of any federal, state or local government, except those contemplated by this Agreement,
which are beyond the control of the Builder.
Section 1.2. Exhibits. The following Exhibits are attached to and by reference made a
part of this Agreement:
A. Form of Certificate of Completion
B. Program Guidelines—Lot Sale Program
C. Form of Quit Claim Deed
D. Well Disclosure
401253v8 CBR RC125-65
2
Section 1.3. Rules of Interpretation.
(a) This Agreement shall be interpreted in accordance with and governed by the laws
of the State of Minnesota.
(b) The words "herein" and "hereof' and words of similar import, without reference
to any particular section or subdivision refer to this Agreement as a whole rather than any
particular section or subdivision hereof.
(c) References herein to any particular section or subdivision hereof are to the section
or subdivision of this Agreement as originally executed.
(d) Any titles of the several parts, articles and sections of this Agreement are inserted
for convenience and reference only and shall be disregarded in construing or interpreting any of
its provisions.
ARTICLE II.
REPRESENTATIONS AND UNDERTAKINGS
Section 2.1. By the Builder. The Builder makes the following representations and
undertakings:
(a) The Builder has the legal authority and power to enter into this Agreement and has
duly authorized the execution, delivery and performance of this Agreement;
(b) The Builder has the necessary equity capital or has obtained commitments for
financing necessary for construction of the Improvements;
(c) The Builder will construct the Improvements in accordance with the terms of this
Agreement and all local, state and federal laws and regulations;
(d) The Builder will obtain, in a timely manner, all required permits, licenses and
approvals, and will meet, in a timely manner, the requirements of all local, state and federal laws
and regulations which must be obtained or met before the Improvements may be constructed;
(e) The plans for the Improvements have been prepared by a qualified draftsperson or
architect; and
(� The Builder has read and understands the Guidelines and agrees to be bound by
them.
Section 2.2. Bv the HRA. The HRA makes the following representations as the basis
for the undertaking on its part herein contained:
401253v8 CBR RC125-65
3
(a) The HRA is authorized by law to enter into this Agreement and to carry out its
obligations hereunder; and
(b) The HRA �vill, in a timely manner, subject to all notification requirements, review
and act upon all submittals and applications of the Builder and will cooperate with the efforts of
the Builder to secure the granting of any permit, license, or ather approval required to allow the
construction of the Improvements.
ARTICLE III.
ACQUISITION OF PROPERTY; CONVEYANCE TO BUILDER
Section 3.1. Purchase of Pronertv bv Builder. The HRA agrees to sell the Property to
Builder and the Builder agrees to purchase the Property from the HRA in an "as-is" condition.
The sale of the Property is contingent upon the Builder providing the HRA with evidence
satisfactory to the HRA that Builder has entered into a binding legal commitment, in the form of
a Purchase Agreement for the resale of the Property to a Homeowner following completion of the
Improvements. The HRA agrees to convey the Property to the Builder by Quit Claim Deed in the
general form of Exhibit C. The HRA's deed to the Builder will contain the right of reverter
. required in Section 8.3. The purchase price for the Property, payable at Closing, will be $60,000
("Purchase Price"). '
Section 3.2. Title and Examination. As soon as reasonably possible after execution of
this Contract for Private Development by both parties,
(a) HRA shall surrender any abstract of title and a copy of any owner's title insurance
policy for the property, if in HRA's possession or control, to Builder or to Builder's designated
title service provider; and
(b) Builder shall obtain the title evidence determined necessary or desirable by
Builder or Builder's lender, including but not limited to title searches, title examinations,
abstracting, a title insurance commitment or an attorney's title opinion, at Builder's selection and
cost, and provide a copy to the HRA.
The Builder shall have 20 days from the date it receives such title evidence to raise any
objections to title it may have. Objections not made within such time will be deemed waived.
The HRA shall have 90 days from the date of such objection to effect a cure; provided, however,
that the HRA shall have no obligation to cure any objections, and may inform Builder of such.
The Builder may then elect to close notwithstanding the uncured objections or declare this
Agreement null and void, and the parties will thereby be released from any further obligation
hereunder.
Section 3.3. Taxes and Special Assessments. Real estate taxes and installments of
special assessments will be prorated between the HRA and Builder as of the date of closing.
401253v8 CBR RC125-65
4
Section 3.4. Soil Conditions and Hazardous Wastes. The Builder acknowledges that
the HRA makes no representations or warranties as to the conditions of the soils on the Property,
its fitness for the construction of improvements or any other purpose for which the Builder may
use the Property, or regarding the presence of hazardous wastes on the Property. The HRA will
allow reasonable access to the Property for the Builder to conduct such tests regarding soils
conditions and hazardous wastes as the Buyer may desire. Permission to enter the Property to
conduct such tests must be given in writing under reasonable terms and conditions established by
the HRA.
Section 3.5. Site Clearance. The HRA will be responsible for clearance of all buildings
as required to prepare the Property for development. All other site preparation is the
responsibility of Builder. Builder will comply with all of the provisions of the Guidelines
relating to tree protection,preservation and replacement.
Section 3.6. Other Preconditions to Closing. Closing may not take place until the
HRA is satisfied that the Project is in all respects in full compliance with the provisions of the
Guidelines contained in Exhibit B. It is anticipated that the Builder will involve the Homeowner
in the various activities required under the Guidelines so that the Homeowner will have an
opportunity to contribute suggestions concerning development of the Property.
Section 3.7. Closin�. Closing must take place on or before November 1, 2015,
("Closing Date") or such other date as may be agreed to by the Builder and HRA in writing. At
Closing, the Builder will provide the HRA with a cash deposit for the escrow account established
pursuant to Section 5.1, in addition to the Purchase Price.
Section 3.8. Closin� Costs. The Builder will pay: (a)the closing fees charged by its title
insurance company or other closing agent, if any, utilized to close the transaction for
Builder; (b)title services chosen by Builder pursuant to Section 3.2 above,including the premium for
title insurance policy, if any,and(c)the recording fees for the Contract for Private Development and
the deed transferring title to the Builder. HRA will pay all other fees normally paid by sellers,
including (a) any transfer taxes, and (b) fees and charges related to the filing of any instrument
required to make title marketable. Each party shall pay its own attorney fees.
Section 3.9. Sewer and Water. HRA warrants that city water is available at the lot line
and city sewer is available at the curb.
Section 3.10. ISTS Disclosure. HRA is not aware of any individual sewage treatment
system on the property. Buyer is responsible for all costs of removing any individual sewage
treatment system that may be discovered on the Property.
Section 3.11. Well Disclosure. HRA's knowledge of wells on the Property is disclosed
in Exhibit D.
ARTICLE IV.
401253v8 CBR RC125-65
5
CONSTRUCTION OF IMPROVEMENTS
Section 4.1. Construction of Imnrovements. The Builder shall construct the
Improvements on the Property in accordance with the Guidelines and the Construction Plans,
shall cause the Improvements to meet or exceed the Minimum Market Value specified in Section
1.1, and shall maintain, preserve and keep the Improvements in good repair and condition. The
Builder shall provide his or her proposed construction plans to the HRA for review; if the
proposed construction plans are in conformity with this Agreement and the Guidelines, the HRA
will approve the Construction Plans following review and comment by the Homeowner.
Section 4.2. Construction Plans. No building permit will be issued by the City unless
the Building Plans are in conformity with the Guidelines, the Construction Plans, the Builder's
Minimum Market Value, other requirements contained in this Agreement, and all local, state and
federal regulations. The Builder shall provide the HRA with a set of Building Plans to be used in
connection with any application for a building permit. The HRA shall, within 25 days of receipt
of the Building Plans review the same to determine whether the foregoing requirements have
been met. If the HRA determines such Building Plans to be deficient, it shall notify the Builder
in writing stating the deficiencies and the steps necessary for correction. Issuance of the building
permit by the City shall be a conclusive determination that the Building Plans have been
approved and shall satisfy the provisions of this Section 4.2.
Section 4.3. Schedule of Construction. Subject to Unavoidable Delays, construction of
the Improvements shall be completed prior to June 1, 2016 ("Construction Completion Date").
All construction shall be in conformity with the approved Construction Plans and the
Guidelines. Periodically during construction the Builder shall make reports in such detail as may
reasonably be requested by the HRA concerning the actual progress of construction. If at any
time prior to completion of construction the HRA has cause to believe that the Builder will be
unable to complete construction of the Improvements in the time permitted by this Section 4.3, it
may notify the Builder and demand assurances from the Builder regarding the Builder's
construction schedule. If such assurances are not forthcoming or are deemed by the HRA at its
sole discretion to be inadequate, the HRA may declare an Event of Default and may avail itself of
any of the remedies specified in Section 8.2 of this Agreement.
Section 4.4. Certi�cate of Comnletion. After notification by the Builder of completion
of construction of the Improvements, the HRA shall inspect the construction to determine
whether the Improvements have been completed in accordance with the Construction Plans and
the terms of this Agreement, including the date of the completion thereof. In the event that the
HRA is satisfied with the construction, and upon closing on the sale of the Property to the
Homeowner, the HRA shall furnish the Builder with a Certificate of Completion in the form
attached hereto as Exhibit A. Such certification by the HRA shall be a conclusive determination
of satisfaction and termination of the agreements and covenants in this Agreement. Issuance of
the Certificate of Completion shall also serve as a satisfaction of any obligation of Builder
secured by the escrow account established under Section 5.1, and the cash in the escrow account
will be released to the Builder. At the time a Certificate of Completion is issued, the HRA will
401253v8 CBR RC125-65
6
also provide Builder. with a $5,000 cash rebate if Builder has obtained Green Community
Concepts certification through LEED for Homes, Minnesota GreenStar, Minnesota Green
Communities or Minnesota Green Path.
If the HRA shall refuse or fail to provide certification in accordance with the provisions
of this Section 4.4, the HRA shall within 15 days of such notification provide the Builder with a
written statement, indicating in adequate detail in what respects the Builder has failed to
complete the Improvements in accordance with the provisions of this Agreement necessary, in
the opinion of the HRA, for the Builder to take or perform in order to obtain such certification.
Section 4.5. Faiture to Construct. In the event that construction of the Improvements is
not completed as provided in Section 4.3 of this Agreement, an Event of Default shall be deemed
to have occurred, and the HRA may proceed with its remedies under Section 8.2.
ARTICLE V.
REDEVELOPMENT ASSISTANCE
, Section 5.1. Establishment of Cash Escrow. Builder acknowledges that although it is
purchasing the Property at its fair market value as raw land,the HRA has incurred significant
costs in acquiring and preparing the Property for development by Builder. At Closing, Builder
will deliver to the HRA$10,000 to be placed in a non-interest bearing escrow account pursuant
to the Escrow Agreement, dated as of the date hereof, between Builder and HRA. The obligation
to pay the $10,000 to the HRA will be forgiven, and the cash in the escrow account will be
returned to Builder if: (i)the Builder receives a Certificate of Completion; and(ii)the Builder is
not otherwise in default of any of its obligations hereunder. If such have not occurred, an Event
of Default shall be deemed to have occurred and the HRA may exercise its remedies under
Section 8.2. In certain circumstances, after construction is complete, the Builder or Buyer may be
required to deposit another cash escrow with the planning department of the City for incomplete
improvements. In these cases, following the HRA's release of the cash escrow, the cash escrow
will be transferred to the City's planning department for such purpose. The terms of the escrow
will be set forth in an Escrow Agreement between the HRA and the Builder or Buyer.
ARTICLE VI.
FINANCING
Section 6.1. Financin�. HRA acknowledges that Builder has submitted evidence of
financing for the Improvements in compliance with the provisions of Section 2.1(b) of this
Agreement. Builder must notify HRA immediately of any changes to or withdrawal of the
approved financing, HRA shall have 10 days to approve or disapprove changes in financing. If
the HRA rejects a change in the approved financing or if the approved financing is withdrawn,
the Builder shall have 30 days or such additional period of time as the Builder may reasonably
require from the date of the HRA's notification to submit evidence of financing satisfactory to
the HRA. If the Builder fails to submit such evidence or fails to use due diligence in pursuing
401253v8 CBR RC125-65
7
financing, the HRA may terminate this Agreement and both parties shall be released from any
further obligation or liability hereunder. Closing shall not take place uritil Builder has provided
HRA with acceptable evidence of financing for construction of the Improvements.
Section 6.2. COpv of Notice of Default to Lender. Whenever the HRA shall deliver
any notice or demand to the Builder with respect to any Event of Default by the Builder in its
obligations or covenants under this Agreement, the HRA shall at the same time forward a copy of
such notice or demand to each holder of any Mortgage authorized by the Agreement at the last
address of such holder shown in the records of the HRA.
Section 6.3. Subordination. In order to facilitate obtaining financing for the
construction of the Improvements by the Builder, the HRA may, in its sole and exclusive
discretion, agree to modify this Agreement in the manner and to the extent the HRA deems
reasonable, upon request by the financial institution and the Builder.
ARTICLE VIL
PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER
Section 7.1. ReUresentation as to Redevelopment. The Builder represents and agrees
that its undertakings pursuant to the Agreement, are for the purpose of development of the
Property and not for speculation in land holding. The Builder further recognizes that, in view of
the importance of the Development to the general welfare of Richfield and the substantial
financing and other public aids that have been made available by the HRA for the purpose of
making the Development possible, the qualification and identity of the Builder are of particular
concern to the HRA. The Builder further recognizes that it is because of such qualifications and
identity that the HRA is entering into this Agreement, and, in so doing, is further willing to rely
on the representations and undertakings of the Builder for the faithful performance of all
undertakings and covenants agreed by the Builder to be performed.
Section 7.2. Prohibition A�ainst Transfer of Propertv and Assi�nment of
A�reement. For the reasons set out in Section 7.1 of this Agreement, the Builder represents and
agrees as follows:
(a) Except as specifically allowed by this section, Builder has not made or created,
and, prior to the issuance of the Certificate of Completion, Builder will not make or create, or
suffer to be made or created, any total or partial sale, assignment, conveyance, or any trust in
respect to this Agreement or the Property or any part thereof or any interest therein, or any
contract or agreement to do any of the same,without the prior written approval of the HRA.
(b) This provision shall not be deemed as preventing the Builder from entering into a
Purchase Agreement for the sale of the Property to a Homeowner.
(c) This provision does not prohibit conveyances that are only by way of security for,
and only for the purpose of obtaining financing necessary to enable the Builder or any successor
401253v8 CBR RC125-65
g
in interest to the Property, or any part thereof, to perform its obligations with respect to the
Development under this Agreement, and any other purpose authorized by this Agreement. Any
Mortgage obtained by the Builder must be disclosed to the HRA, and must be subordinate to this
Agreement. The Builder must provide the HRA with an address for the holder of the Mortgage
for purposes of providing notices as may be required by this Agreement.
ARTICLE VIII.
EVENTS OF DEFAULT
Section 8.1. Events of Default Defined. The following shall be deemed Events of
Default under this Agreement and the term shall mean, whenever it is used in this Agreement,
unless the context otherwise provides, any one or more of the following events:
(a) Failure by the Builder to pay when due the payments required to be paid or
secured under any provision of this Agreement;
(b) Failure by the Builder to observe and substantially perform any covenant,
condition, obligation or agreement on its part to be observed or performed hereunder, including
the time for such performance;
(c) If the Builder shall admit in writing its inability to pay its debts generally as they
become due, or shall file a petition in bankruptcy, or shall make an assignment for the benefit of
its creditors, or shall consent to the appointment of a receiver of itself or of the whole or any
substantial part of the Property;
(d) If the Builder, on a petition in bankruptcy filed against it, be adjudicated as
bankrupt, or a court of competent jurisdiction shall enter an order or decree appointing, without
the consent of the Builder, a receiver of the Builder or of the whole or substantially all of its
property, or approve a petition filed against the Builder seeking reorganization or arrangement of
the Builder under the federal bankruptcy laws, and such adjudication, order or decree shall not be
vacated or set aside or stayed within 60 days from the date of entry thereof; or
(e) If the Development is in default under any Mortgage and has not entered into a
work-out agreement with the holder of the Mortgage.
Section 8.2. Remedies on Default. Whenever any Event of Default occurs, the HRA
may, in addition to any other remedies or rights given the HRA under this Agreement, take any
one or more of the following actions following written notice by the HRA to the Builder as
provided in Section 9.3 of this Agreement:
(a) Suspend its performance under this Agreement until it receives assurances from the
Builder, deemed reasonably adequate by the HRA, that the Builder will cure its default and
continue its performance under this Agreement;
401253v8 CBR RC125-65
9
(b) Cancel or rescind this Agreement;
(c) Exercise its right under Section 8.3;
(d) Withdraw all funds in the escrow account established in Section 5.1;
(e) Withhold the Certificate of Completion; or
(� Take whatever action at law or in equity may appear necessary or desirable to the
HRA to enforce performance and observance of any obligation, agreement, or covenant of the
Builder under this Agreement; provided, however, that any exercise by the HRA of its rights or
remedies hereunder shall always be subject to and limited by, and shall not defeat, render invalid
or limit in any way (a) the lien of any Mortgage authorized by this Agreement and (b) any rights
or interest provided in this Agreement for the protection of the holders of a Mortgage; and
provided further that should any holder of a Mortgage succeed by foreclosure of the Mortgage or
deed in lieu thereof to the Builder's interest in the Property, it shall, notwithstanding the
foregoing, be obligated to perform the obligations of the Builder under this Agreement to the
extent that the same have not therefore been performed by the Builder.
Section 8.3. Revesting Interest in HRA Uuon Happenin� of Event of Default
Subsequent to Convevance of Pronertv to Builder. In the event that subsequent to the closing
or the sale of the Property to the Builder and prior to the issuance of the Certificate of
Completion:
(a) The Builder fails to begin construction of the Improvements in conformity with
this Agreement, and such failure is not due to Unavoidable Delays;
(b) The Builder, after commencement of the construction of the Improvements,
defaults in or violates obligations with respect to the construction of the Improvements, including
the nature and the date for the completion thereof, or abandons or substantially suspends
construction work, and such act or actions is not due to Unavoidable Delays;
(c) The Builder or successor in interest fails to pay real estate taxes or assessments on
the Property or any part thereof when due, or places thereon any encumbrance or lien
unauthorized by this Agreement, or suffers any levy or attachment to be made, or any supplier's
or mechanic's lien, or any other unauthorized encumbrance or lien to attach;
(d) There is, in violation of Article VII of this Agreement, any transfer of the Property
or any part thereof; or
(e) The Builder fails to comply with any of its covenants under this Agreement,
then the HRA shall have the right upon �0 days' written notice to Builder and the Builder's
failure to cure within such 30 days period, to re-enter and take possession of the Property and to
terminate and revest in the HRA the interest of the Builder in the Property; provided, however,
401253v8 CBR RC125-65
1�
that such revestiture of title shall be subject to the lien of any prior encumbrance permitted under
this Agreement, or any right of a Homeowner pursuant to a valid Purchase Agreement authorized
by this Agreement.
Section 8.4. No Remedv Exclusive. No remedy herein conferred upon or reserved to
the HRA is intended to be exclusive of any other available remedy or remedies, but each and
every such remedy shall be cumulative and shall be in addition to every other remedy given
under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or
omission to exercise any right or power accruing upon any default shall impair any such right or
power or shall be construed to be a waiver thereof, but any such right and power may be
exercised from time to time and as often as may be deemed expedient. In order to entitle the
HRA or the Builder to exercise any remedy reserved to it, it shall not be necessary to give notice,
other than such notice as may be required in this Article VIII.
Section 8.5. No Additional Waiver Imnlied bv One Waiver. In the event of the
occurrence of any Event of Default by either party, which Event of Default is thereafter waived
by the other party, such waiver shall be limited to the particular Event of Default so waived and
shall not be deemed to waive any other concurrent,previous or subsequent Event of Default.
ARTICLE IX.
ADDITIONAL PROVISIONS
Section 9.1. Conflict of Interests; Representatives Not Individuallv Liable. No HRA
officer who is authorized to take part in any manner in making this Agreement in his or her
official capacity shall voluntarily have a personal financial interest in this Agreement or benefit
financially there from. No member, official, or employee of the HRA shall be personally liable
to the Builder, or any successor in interest, for any Event of Default by the HRA or for any
amount which may become due to the Builder or successor or on any obligations under the terms
of this Agreement.
Section 9.2. Non-Discrimination. The provisions of Minnesota Statutes Section
181.59, which relate to civil rights and non-discrimination, and any affirmative action program of
the City shall be considered a part of this Agreement and binding on the Builder as though fully
set forth herein.
Section 9.3. Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand or other communication under this Agreement by either party to the
other shall be sufficiently given or delivered if it is sent by mail, postage prepared, return receipt
requested or delivered personally:
401253v8 CBR RC125-65
11
(a) As to the HRA:
Richfield HRA
Executive Director
6700 Portland Avenue South
Richfield, MN 55423
(b) As to the Builder:
Key Land Homes
17021 Fish Point Road
Prior Lake, MN 55372
or at such other address with respect to either such party as that party may, from time to time,
designate in writing and forward to the other as provided in this Section 9.3.
Section 9.4. Counternarts. This Agreement may be simultaneously executed in any
number of counterparts, all of which shall constitute one and the same instrument.
Section 9.5. Extensions. Any extension to the Closing Date and/or extension to
Construction Completion Date that exceeds 6 months from the date agreed to in Section 3.7 and 4.3,
respectively, must be approved by the HRA Board. HRA staff is authorized to extend the Closing
Date to a date less than 6 months from the Closing Date agreed to in Section 3.7 and extend the
Construction Completion Date to a date less than 6 months from the Construction Completion Date
agreed to in Section 4.3.
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed
as of the day and year first above written.
[signature pages follow]
401253v8 CBR RC125-65
12
Signature Page for HRA
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
RICHFIELD,MINNESOTA
By
Its Chairperson
By
Its Executive Director
STATE OF MINNESOTA )
) SS
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
, 20 , by , the Chairperson of the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota, a public body corporate
and politic under the laws of Minnesota, on behalf of the authority.
Notary Public
STATE OF MINNESOTA )
) SS
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
, 20 , by , the Executive Director of the Housing
and Redevelopment Authority in and for the City of Richfield, Minnesota, a public body
corporate and politic under the laws of Minnesota, on behalf of the authority.
Notary Public
401253v8 CBR RCI25-65
13
Signature Page for Builder
Builder
By
Its
STATE OF MINNESOTA )
) SS
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
, 20 , by , the
of , a
under the laws of , on behalf of the
Notary Public
401253v8 CBR RC125-65
14
EXHIBIT A
FORM OF CERTIFICATE OF COMPLETION
The undersigned hereby certifies that , has fully and
completely complied with its obligations under that document entitled "Contract for Private
Development", between the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota and dated ,
filed as Document No. (the
"Contract") with respect to the construction of the approved construction plans at
, legally described as and is
released and forever discharged from its obligations under such Contract.
DATED:
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
RICHFIELD
By:
Its: Executive Director
STATE OF MINNESOTA )
) SS
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this day of
, 20_, by the Executive Director of the
Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate
and politic under the laws of the State of Minnesota on behalf of the public body corporate and
politic.
Notary Public
This instrument was drafted by:
Kennedy& Graven, Chartered
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
A-1
401253v8 CBR RC125-65
EXHIBIT B
PROGRAM GUIDELINES—LOT SALE PROGRAM
RICHFIELD REDISCOVERED
PROGRAM GUIDELINES
LOT SALE PROGRAM
REVISED: February 18, 2014
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401253v8 CBR RC125-65
PROGRAMOBJECTIVES............................................................................................................................3
DEFINITIONS................................................................................................................................................3
PROGRAMBASICS.....................................................................................................................................3
APPLICATIONREQUIREMENTS................................................................................................................4
ADDITIONAL REQUIREMENTS...................................................................................................................5
HOUSE DESIGN AND SiTE DEVELOPMENT REQUIREMENTS...............................................................5
NewHouse Standards............................................................................................................................6
SiteStandards.........................................................................................................................................6
ConstructionRequirements...................................................................................................................6
GeneralStandards..................................................................................................................................7
GreenCommunity Concepts..................................................................................................................8
CITYREVIEW PROCEDURE.......................................................................................................................8
LOTSALE TO BUILDER/BUYER................................................................................................................9
PROGRAMMARKETING.............................................................................................................................9
DATAPRIVACY............................................................................................................................................9
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401253v8 CBR RC125-65
This document has been developed as a guidance tool for program administration. It should not be
interpreted as constituting any contractual agreement or liability by the City or Housing and
Redevelopment Authority(HRA). The HRA may modify or divert from the guidelines where it deems
appropriate.
I. Program Objectives
1. To remove substandard, functionally obsolete housing on scattered sites throughout the City
and replace with new, higher-valued housing.
2. To eliminate the blighting influence of substandard housing, thus improving residential
neighborhoods.
3. To alleviate the shortage of housing choices for families.
4. To facilitate the construction of larger three- to four-bedroom, owner-occupied homes
designed for families.
5. To facilitate the construction of multi-unit, owner-occupied homes designed to expand family
opportunities or to serve elderly residents.
These objectives will be achieved through the sale of lots by the Housing and Redevelopment Authority to
Builder/Buyer teams for the development of newly constructed homes.
II. Definitions
Applicant: An individual who submits an application for a Richfield Rediscovered lot. The Applicant may
be a Builder or the end Buyer. If the Applicant is a Builder, an end Buyer should be identified. If the
Applicant is the Buyer, the Applicant must submit a signed contract befinreen the Builder and the Buyer to
build a home on the lot identified in the application.
Buyer. An individual(s)who will build, own and occupy a new housing unit in Richfield.
The Buyer will occupy the property and not offer it for rent. The Buyer may not also function as the Builder
on a Richfield Rediscovered project. The Buyer and Builder must be unrelated separate legal entities. A
speculative project by a Buyer may be considered if all other program requirements can be met.
However, neither the Buyer, the Buyer's Builder or Builder's subcontractors, or the Builder's realty agents
may occupy or purchase the property.
Buyers, unless licensed in the trade specified, may not put any sweat equity into the construction of the
foundation, wall/roof framing, shingling, exterior work, electrical/plumbing/HVAC systems or interior
carpentry.
Builder. Contractor who has signed a contract with the Buyer to build a home on the lot identified in the
application.
Contract for Private Development: A contract befinreen the HRA and the Builder or Buyer that establishes
the conditions under which the lot will be sold and the proposed house will be developed.
Green Community Concepts Plan: A written plan indicating how the proposed development will
incorporate green building features and concepts. Priority will be given to projects that incorporate green
building features.
HRA: Housing and Redevelopment Authority in and for the City of Richfield.
Lot List: A listing of available lots for sale. Information regarding the lot location, size and sale price is
provided.
III. Program Basics
1. HRA publishes a list of available vacant lots for purchase including sale price and
development criteria.
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401253v8 CBR RC125-65
2. Builder/Buyer team proposes a plan for a lot consistent with development criteria and program
requirements and makes an offer to purchase.
3. HRA approves lot sale.
4. Lot is sold to Builder or Buyer.
5. Builder constructs new home.
6. Projects must be completed within one year of HRA approval of the project.
IV. Application Requirements
The following must be submitted for application to the program:
1. $525 application fee
An application fee must be paid at the time of application. This fee is non-refundable and
is not part of the lot price.
2. Application Form
3. Blueprints
The layout of all levels, including basement and unfinished space, must be provided.
4. Elevations
Elevations of all four sides of the house, including view of garage shall be provided.
Colored renderings may also be required.
5. Site plan
The site plan shall indicate the location of the new house, walkways and garage.
6. Landscaping plan
A landscaping plan must indicate the location and type of trees, shrubbery, flowers and
landscaping materials(e.g. rocks, mulch) and any existing trees to be preserved.
7. Detail of construction materials to be used on the project.
8. Green Community Concepts Plan
The plan should indicate what Green Community Concepts will be incorporated into the
project.
9. Construction timeline
Construction must be completed with one year of the purchase of the property.
10. Signed contract with Builder
11. Purchase agreement
If the Builder plans to purchase the lot, the application must include a valid purchase
agreement between the Buyer and the Builder for the lot to be developed.
12. Financial capability statement
A statement from a financial institution indicating willingness to provide sufficient
construction capital to complete the project must be provided.
13. Builder References
a. Five previous customers
b. Three major suppliers, one being the construction supplier
c. Building inspectors from two cities where the Builder has constructed new housing
within the past three years
14. Proof of Builder's Comprehensive General Liability with Property Damage Protection.
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401253v8 CBR RC125-65
15. Proof of sufficient worker's compensation insurance coverage by the Builder.
16. Written warranty program
To be provided to the Buyer, which guarantees at a minimum, warranted repairs as
required by Minnesota State Statute.
V. Additional Program Requirements
1. The Applicant is. expected to meet with an architectural/design consultant prior to submitting an
application. A finro-hour consultation is available through the HRA at a cost of$25 to the applicant.
See the City's website (www.cityofrichfield.org) for more information. This requirement may be
waived if the applicant is using an architect for the project.
2. The site will be sold to the Builder or Buyer at the fair market value as appears on the Lot List.
The HRA will not accept offers for less than the established sale price.
3. A Contract for Private Development is signed by the HRA and the Builder or the Buyer. The
Contract is a standard form which includes conditions for acquisition and development of the
property. The Contract will also establish a minimum required end-value for the property based
on construction estimates provided by the applicant. The Builder or Buyer will be expected to
agree to the terms of the Contract before the application can be scheduled on the HRA agenda.
4. All lots will have a required minimum end value that will be established in the Contract for Private
Redevelopment.
5. The lot can be sold to either the Builder or the Buyer. If the lot is sold to the Builder, the Builder
will pay cash for the lot at closing and submit a Letter of Credit or cash escrow for$10,000. The
Letter of Credit must be from a financial institution incorporated in the Twin Cities metropolitan
area. The cash escrow will be held in a non-interest bearing account. The Letter of Credit or
cash escrow will be released once the construction and landscape work are completed and a final
Certificate of Occupancy is issued.
6. If the lot is sold to the Builder and the Builder fails to complete construction as approved by the
HRA, the Letter of Credit or cash escrow may be drawn upon by the HRA. In addition, the
Contract for Private Development will contain a reverter provision, which will enable the HRA to
reclaim ownership of the property in the event of a default in the Contract. In the event that the
Builder fails to complete construction, the HRA may exercise its rights under the reverter
provision, as well as draw upon the Letter of Credit or cash escrow.
7. If the lot is sold to the Buyer, the Buyer will pay cash for the lot at closing and a$10,000 mortgage
in favor of the HRA will be filed on the property. The mortgage will be in first position. The HRA
may consider subordinating its interest in appropriate cases.
8. If the lot is sold to the Buyer and the Buyer fails to complete construction as approved by the HRA,
the HRA may exercise its rights provided in the mortgage.
VI. House Design and Site Development Requirements
The development of all sites shall meet the development criteria listed below, as reviewed and approved
by the HRA. To maximize the development of a given lot, the HRA reserves the right to explore all
development options without obligating the HRA to support any specific proposal, idea or solicitation.
Housing design is a critical element of the program. Siding materials, exterior fa�ade presentation, roof,
window, siding and building line variability, finished landscape, interior space function and use are all
important issues of design to the HRA. The design requirements were created to ensure that the homes
built on the HRA-sold lots blend in with the surrounding neighborhood and respond to the specific
concerns of the HRA.
GS
401253v8 CBR RC125-65
All new houses built under the Richfield Rediscovered Program must meet the requirements of the City's
Zoning Code and additional criteria, as listed in this document.
A. New House Standards
1. New dwelling must be owner-occupied.
2. Three finished bedrooms are required.
3. Two finished bathrooms are required.
4. Two-car garage is required.
5. A full basement is required, unless the selected design results in a split-level or a garden-level
type of basement. In the case of an "accessible" house, a basement may be omitted if it would
otherwise prohibit accessible design elements.
B. Site Standards
1. After construction, the site must be fully landscaped, including plantings around the foundation.
The entire grounds shall be landscaped and be aestheticaNy pleasing in all seasons. Land forms
and plant materials shall be used to define the site and blend neatly with adjoining properties.
Specific lot line blending requirements may be required, as appropriate, for specific sites.
At a minimum, the applicant must meet the "Landscaping and Screening Requirements" in the
City's Zoning Code under Section 544.03, Subd. 4, General landscapinq requirements and Subd.
5, Residential sites. The code is available on the City's website: http://www.ci.richfield.mn.us
To the greatest extent possible, existing trees should be preserved. Any trees removed must be
replaced (they do not have to be the same species or in the same location) and should be
labeled on the required landscape plan.
2. Utility meters shall be screened from street view and locations must be specified on plans.
3. Site drainage should be accommodated on the site so that water is directed away from the new
home and the neighboring properties. Neighboring properties must not be disturbed by the
creation of drainage swales. Specific storm water management requirements may be required,
as appropriate, including the addition of gutters or on-site management for specific sites.
Construction and the finished structure must not have a detrimental impact on storm water
drainage patterns in the neighborhood.
4. All air conditioning units must be located in the rear yard of fihe house, or as approved by the
HRA.
C. Construction Requirements
1. Existing trees identified on the landscape plan as being preserved, must be protected during
construction. A tree wrap with board reinforcements shall be used on trees directly adjacent to
active grading and construction areas. Damaged or destroyed trees must be replaced.
2. The construction site, neighboring properties and adjacent public streets shall be kept free of
construction debris at all times.
3. No construction workers, construction equipment or construction material shall encroach upon
neighboring properties.
C-6
401253v8 CBR RC125-65
4. The property shall have a new sanitary service line installed to the City sanitary sewer main
consisting of schedule 40 PVC or equivalent. If there is an existing 6" sewer stub at the property
line, it must be lined with 4" schedule 40 PVC or equivalent to the City's sanitary main, and it
must include a"donut"at the end with cement.
The line must be televised after installation to ensure the following:
1. There are no obstructions in the line.
2. The PVC liner is not protruding into the City's sanitary sewer main line.
D. General Standards
1. The value of the new home must meet or exceed the minimum value specified in the Contract for
Private Redevelopment.
2. All homes in the Richfield Rediscovered Program must be stick-built or high-quality modular, new
construction.
3. Exterior materials (siding, soffit, doors and windows) should be low-maintenance and durable.
Brick, aluminum, vinyl and fiber cement siding are preferred. Natural cedar lap is acceptable if
properly stained or painted. Hardboard panels or hardboard lap siding are prohibited. Roof
valleys must have metal valleys and not be woven.
4. Unit height and mass of the new house shall be compatible with the scale of the surrounding
° homes in the neighborhood.
5. Plans must present a balanced and pleasing distribution of wall, door and window areas from all
views.
6. The dominance of the garage door must be minimized through placement, architectural detail,
door design and utilization and design of windows. Garages, where the garage door faces the
street, shall not be located closer to the front lot line than the foremost facade of the principal
building facing the front property line. Garage sidewalls that face the street should appear to
contain habitable space. This can be accomplished by incorporating windows and other design
elements into the garage wall that are in character with the remainder of the dwelling. For lots
that have alley access, the garage should be oriented to access the alley.
7. All building plans must have been prepared in consultation with an architect or qualified
draftsperson. All requirements by the Building Inspections Division must be met.
8. All Richfield Rediscovered houses must meet or exceed Minnesota Energy Code requirements.
9. All new homes shall be built to provide high quality sound insulation. Recommendations for sound
insulation measures may be provided on a site-by-site basis. All construction must conform to
sound attenuation building standards as required by Zoning Ordinance Section 541.19 for
properties located within the 2007 60-62 DNL Contour and 2007 63 or greater DNL contours. In
cases where sound attenuation standards are required and an increase in costs can be
documented, the HRA may consider a reduction in the price of the lot in an amount equal to 75
percent of the cost of sound attenuation measures up to a maximum of$7,500.
9. If a variance is required to construct the proposed development, the HRA may, at its sole
discretion, choose to reject the application.
10. If the HRA accepts an application that needs a variance(s), sale of the property will be contingent
upon the applicant obtaining the necessary variance(s). The Applicant is responsible for applying
for the variance(s) at its own expense. The HRA, as owner of the property, will, however,
cooperate with the application.
C-7
401253v8 CBR RC125-65
E. Green Community Concepts
Priority will be given to projects incorporating the green community concepts listed below. Any
concepts the applicant would like considered during the application process should be explained
in a written plan submitted with the application. A$5,000 rebate will be provided to the Applicant
for projects that obtain certification through LEED for Homes, Minnesota GreenStar or Minnesota
Green Communities.
1. Protect and conserve water and soiL To reduce water consumption, consider the use of water-
conserving appliances, fixtures, and landscaping. Steps should be taken to minimize the loss of
soil and sediment during construction and occupancy to reduce storm-water sediment and air
pollution.
2. Minimize energy consumption. Reduce energy consumption by taking advantage of natural
heating, cooling and day lighting, and by using energy-efficient appliances, equipment and
lighting.
3. Enhance indoor environmental quality. Use non-toxic materials, ventilation and exhaust systems,
and moisture control products and systems.
4. Use environmentally-preferable materials and resources. Use locally-produced, salvaged and/or
manufactured materials, products with recycled content or from renewable sources, recyclable or
reusable materials, and low-VOC-emitting materials.
5. Reduce waste. Reduce and manage wastes generated during the construction process and
operation of buildings. lf demolition occurs, sort and recycle leftover materials and debris.
VII. City Review Procedure
1. Applicant reviews proposed project with HRA staff before plans are finalized.
2. Applicant submits application, plans, and application fee at least 45 days prior to the HRA
meeting.
3. An application is considered to be received when delivered personally to HRA staff in a pre-
arranged meeting. Following this meeting and upon receipt of the application fee, the lot will be
considered reserved and no additional applications will be accepted for the proposed lot while the
application is under review.
4. If an application is determined to be incomplete, the applicant will have 30 days to submit a
complete application. If a complete application is not received within 30 days, the application will
be rejected and the lot will be made available for new applications.
5. HRA staff review application to ensure conformance with House Design and Site Development
Requirements.
6. HRA staff may reject or accept an application at its sole discretion.
7. The Builder or Buyer executes a Contract for Private Redevelopment.
8. An application is determined to be complete and the Contract executed at least three weeks prior to
the HRA meeting.
9. HRA staff publishes a legal notice of the public hearing and prepares a report and
recommendation for the HRA.
10. HRA reviews application, conducts a public hearing, and takes action at the HRA meeting.
C-8
401253v8 CBR RC125-65
11. if approved, the Contract for Private Redevelopment is executed by the HRA.
VIII. Lot Sale to Builder or Buyer
1. Upon approval of the application by the HRA, a closing will be scheduled between the HRA and
the Builder or Buyer.
2. The HRA will prepare all statements, affidavits, documents, and general release forms required
for closing.
3. The Builder applies for a building permit prior to closing. The Builder is responsible for acquiring
the necessary building permits with the City of Richfield Building Inspections Division. If changes
to the plans are required by the Inspections Division, the applicant must notify HRA staff.
4. The Applicant provides evidence to HRA staff that all requirements to proceed with construction,
as determined in the Contract for Private Redevelopment, have been met.
5.. The HRA conveys the property to the Builder or Buyer by Quit Claim Deed. The site will be sold to
the Builder or Buyer at the fair market value as appears on the Lot List.
6. At closing with the Builder, the Builder provides a Letter of Credit or cash escrow for $10,000 to
the HRA.
7. At closing with the Buyer, the Buyer signs a mortgage and promissory note for$10,000 in favor of
the HRA.
8. Upon completion of the project, the Letter of Credit or cash escrow is released to the Builder or
the Buyer's mortgage is released. A Certificate of Completion is executed by the HRA, releasing
the obligations of the Contract for Private Redevelopment.
IX. Program Marketing
Richfield Rediscovered program marketing is entirely at the discretion of the HRA. It may include the
following:
1. Buyer Solicitation. The HRA may market the program to potential Buyers through promotional
articles, direct mail, the Internet, or other methods as deemed appropriate. Buyers may be any
financially capable individual or household, including first-time buyers, move-up buyers or empty-
nesters.
2. Public Promotion.
a. The HRA will periodically provide information about the program through articles in city
publications, on the City's web site, on the Community Cable channel, or via press
releases to promote community awareness.
b. A public open house may be held to provide an opportunity for residents and other
interested parties to collectively view the finished homes. The Parade of Homes Fall
Showcase and Spring Preview may also accomplish this.
A program information package will be mailed to all interested participants. The information packet may
include the following:
1. Lot List
2. Richfield Rediscovered Lot Sale Procedural Guidelines
3. Application Form
4. Sample Contract for Private Redevelopment
X. Data Privacy
All information secured through the program is subject to the Data Privacy Act.
C-9
401253v8 CBR RC125-65
EXHIBIT C
QUIT CLAIM DEED
STATE DEED TAX DUE HEREON: $
Date:
FOR VALUABLE CONSIDERATION, Housing and Redevelopment Authority in and for the
City of Richfield, a public body corporate and politic under the laws of the State of Minnesota,
Grantor, hereby conveys and quit claims to , a
under the laws of the State of , Grantee, real property in Hennepin County,
Minnesota, described as follows:
, according to the map or plat thereof on file or of record in the office of the Hennepin County
Recorder.
This deed is subject to that certain Contract for Private Development between Grantor and
Grantee, dated _, 20_ (the "Contract"), recorded _, 20_, in the office of the Hennepin
County Recorder/Registrar of Titles as Document No. The Contract
provides that the Grantee's rights and interest in the real property described above are subject to the
Grantor's right to re-enter and revest in Grantor title to the Property under conditions specified
therein, including but not limited to termination of the Grantor's right to re-enter and revest upon
issuance of a Certificate of Completion as defined in the Agreement.
(if more space is needed, continue on back)
together with all hereditaments and appurtenances.
❑The Seller certifies that the seller does not know of any wells on the described real property.
❑A well disclosure certificate accompanies this document.
❑I am familiar with the property described in this instrument and I certify that the status and
number of wells on the described real property have not changed since the last previously
filed well disclosure certificate.
HO USING AND REDEVELOPMENT A UTHORITY
IN AND FOR THE CITY OF RICHFIELD
Affix Deed Tax Stamp Here
By
Its Chairperson
By
Its Executive Director
G10
401253v8 CBR RC125-65
STATE OF MINNESOTA
} ss.
COUNTY OF HENNEPIN
The foregoing was acknowledged before me this day of , 20_, by
, the Chairperson of the Housing and Redevelopment Authority in and for the
City of Richfield, a public body corporate and politic under the laws of Minnesota, on behalf of
the corporation, Grantor.
NOTARIAL STAMP OR SEAL(OR OTHER TITLE OR RAK)
SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT
STATE OF MINNESOTA
ss.
COUNTY OF HENNEPIN
The foregoing was acknowledged before me this day of , 20_,
by , the Executive Director, of Housing and Redevelopment Authority in and for
the City of Richfield, a public body corporate and politic under the laws of the State of
Minnesota, on behalf of the corporation, Grantor.
SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT
NOTARIAL STAMP OR SEAL(OR OTHER TITLE OR RAK)
Check here if part or all of the land is Registered(Torrens)❑
Tax Statements for the real properiy described in this
instrument should be sent to (include name and
address of Grantee):
This instrument drafted by:
Kennedy& Graven, Chartered
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
C-11
401253v8 CBR RC125-65
EXHIBIT D
WELL DISCLOSURE
❑ The Seller certifies that the seller does not know of any wells on the described real property.
❑ A well disclosure certificate accompanies this document. [form attached]
❑ The status and number of wells on the described real property have not changed since the
last previously filed well disclosure certificate.
D-1
401253v8 CBR RC125-65
Mi�sota Depaztnu�tt of Hralth M 1 N M E S 0 T A
Well Managemeut Secrion �
P.O.Box 64975
St.PauL Minnesota 55164-0975
G51-2Q1-4587 or 800-383-9848 Ot L
µ�x�_henith.sta�e.mn.us/dns/ehhv��ls
WELL DISCLOSi1tE STATEA�TENT
Prior to si�ung an am�eineut to selt or transfer real property.tl�e seller nnist ah�-a�•s clisclase ui��riting(��-ell
diselosm•e stateuient)the locatiou and stahis(«�ell status defived below-)of all��-ells on the propeity to thz buyer.
alon��vith the legal description aud counry of the pi�operty.uid a sketch map sho«=uig the location of each��-e11 or
uidicate there are no�ti�ells ou the property.
WELL DISCLOSLTRE CERTIFICATE
a�Vell Disclosure Gertificate is requiird to be filed«•heu there are«-ells on tl�e property.
� At the tinie of closui�.the�r-ell disclosure statement uifviYUation.along ti�-itli tlie property Uuyer's nanie aud
uiailuig address.must be pro�Ydzd oii a`Vell Disclosure Certificate(WDC')fonn.��V1ien recordiu�a deed or
otlier iust�uiiaent of couz-ey�ice req�uring a Certificate of Real Estate Value(CRV�,a coiiipleted WDC unist be
filed t�•ith the coimtyrecorder,iuclud'uia a$50 fee payable to tlze cotuity recordn•.
� If there is a pre�iously filed ZVDC c�ll(1 fI12 II11t11I121'Of�S�ells azid%or the t��ell stahis has chauged.a ue�c C�VDC must
be filed.Yo�a may searcli for.pi��ioiuly filed��tTDCs at:
u�►��►t�.hen�tl r.stnte.ri�n.us/di�rslehhvells/disclose�res/diselairrrer.hhrrl.
• If the mmiUer aud stanu of�rells ou the property seivain micl�anged siuce the�rez-iously filed�VDC,a statement
urost be placed on the deed or otlier uistnunei�t of coui-eyance that reads "I a►r�f[l)?11IlQ7'lYl1IP ITiB�YDyC)7y
descr�be�1 in this insn•r►ment and I ce�7ifi�that the stc�ters nnd nea�iber of z��ells on the descr�bed�en1 yroper�ty hrn�e
not changed since the lnst�n•ei�ously filerl xtelJ disclosxre ee.i7ifrcate."Tl�is stateuieut must lx ceititied Uy the
buyer or seller aud no gb�DC is required.
If there are no�cells ou the propert�•,a«'ell Disclosure Certi�cate is not requu•ed to be filed.Hott•ecer.the
Seller nnist certify a statc�uc�rt ou the deed or othzr uismuuent of conveyance tliat reads "The.Seller certifies thnt the
Seller•does not Ir�:o1r of�ny wells vn the described real yrope�7y."
L'�'STRITC'TIONS FOR C'OAIPLETI\G THE R'ELL DISCLOSL"RE CERTIFIC'ATE
A$SO fee must l�uicluded«hen subiuittiva tlus fonu to tlie caiuity recorder's office. Tlie fee is to be paid by the
buyer or person filiue the deed.Please nk�ke the check payable to the Couuty Recordzr.A copy of this�'VDC should
he pno�-ided to tlie property biryer at tl�e tuue of closiug.
PROPERTY,Bi?YER,A.�D SELLER I'��'OR1�tATIO�
A. PROPERIY LOCAT[O'_Y LEGAL DESCRIPTION-R•ovide tlie coiinry iia�ue:'•iuiplatted"�L11Ztt5�llCI
bo�mds description(c�uartile[one quarter section is i�q�iu•ed]or go�-enunent lot.section.todvuship.aud range
n�uuber):aud•or°pl�tted"(lot utuntxr aud`or block numUer.aud additiou name):pro�rty sri•ezt address(if
�glicable).uid eity(this is rhe�hy^sical locatioii of the property uot the iv,��iliu2 address):prupeity ID ntunUer ar
parcel uiuuber(o�tion�l).�ttaeh a coinplete leeal descnption of tl�z�roixrt�.
B. PROPERTY BL'YER ItAILI1�G ADDRESS AFTER CLOSI�G-R•o�-ide tl�e buyer's fi�ll naiue(or
company naiue if buyer is a eosupaxiy),fiall adclress.aiid phone niui�ber(uichid'uig area code).Be siue to iucl�uie
�com�lete mailin2 addi�ss.If the��ropeiKy is jointly o��-iied.pro�-ide the i��uie and coiul�lete n�iliva acldress of
the coutact ixrson.
Seller's lame—Please pro��ide tf�e i�ame of the seller iu space pro�•ided(please prin#).
D-2
401253v8 CBR RC125-65
C. CERTIFIC'ATIOI�'BY SELLER-Tlie seller(or desiguated re}xesei�tative)should sign tlus eeiKifieate bzfure it
is submitted to thz couury reeorder's office.If the sell�r is iwable to sigu tl�e dociuiizut.the buyer(or designated
re�resentative)ui�y si�i the cei�tificate Uefore it is subiiutted to the cotttiry recorder's office.
D. CERTIFICATION BY BL�ER-If the seller is unable to sign the dociuuent.the buyer(or desi�iated
representati�-e)niay sign tl�e ceitificate Uefvre it is subnutted to the cotuity record�r's oifice.��Vhere deeds are
gi�en ni fiilfilhnent of a Conh•act for Deed tl�e WDC must be signed by the bu��er or the person autlioiized to
act on Uelialf of the Uuyer,
Signature Required-Thece mttst Ue at least one signahue an the cert�cate.
«�LL INFOR�iATTON .
E. «ELL LOCATIOIV LEGAL DESCRII'TION-For each�s•ell being distlosed the follotvuig�hysical location
uifoiniation is reqiured:
• co�uiry��iue.qtk�rtile(one quartzr section is required).seetion.to��Yislup.aud raiige utunber:andlor
• coiuity uame.go�eiYUnent lot.section.to�vuslup.and range niuiiber:ancUor
• coiuity narue.lot niunber and'or Ulock nwnlxr.and additian��a�ue
«'ELL STATL?S II�FOR1biATION-I�idicate tlie stahu of each�czll.Check onl�one bos.
In L se-A��=ell is`•iii use"if the trell is operated on a daily.re��ar.or seasonal basis.A�vell"ui use"inclt2des a
1�-e11 tliat opei�ates for the ptupose of iirigatioti.ftre protectian.or etinergency pinnpin�.
Not In irse-A��-e11 is"not in use"if the��-e11 dces not iueet tl�e defiuirion of"iu use"aboce and lias uot been sealed
Uy a ticeused�trell coutracror.
� If the���ell is`'not ui use,"is thei�a Miuuesota Departrueut of Healtli(A�IDH)variaiice for tlus n-e11?Please
pros-ide the vaiiance U�eking ntunUer(TN).if luio���n.
• If the��-e11 is"not ui use,"is thei�au MDH uiauitenance petniit for diis i��ell?Please gro�-ide the penuit niuul�r.
if l:no���u.
Sealed-A«�ell is"sealed"if a licensed 1�-e11 contractor l�as completely filled a nrell Uy ptuupuig grout n�ateiYal
tivougliout the entire«=ell after reiuo�-al of any obshucrions froin the��-e11.A��Vzll and BoiYnt Sealin�Record Fuust
be on£�le ttith the MDH.Coirtact the MDH to�zrify if a sealin�recard is on file.A�vell is"eapped"if it has a metal
ar plastic cap or co�-er��-1uch is threaded.bolted.ar��-elded onto the top of tl�z i�-e11 to prz�-eut entiy u�to t}�e n�ell.
A•Ycapped"�•ell is not a°Gsealed"R•ell.
ImpoiKaut«'ell St:►tus IuPormatiou:
• T'he MDH n-i11 follon�-np ct•ith the property Uuyer regarding any n�ells disclosed as°not in use."If a�i�ell is"not
ui use."the property o��Yier must either retiuu die n�el1 to"ui use."ha�-e the�re11"seated"by a liceused tvell
contractor.or oUtam an umual uk�uitenance peiYnit fi�om the h�IDH for$175.
• MAlll[211c�I1CZ yZ11111Y5 1fz IlOI tl'AItSf21'BUle.If 2 t�Yll IS"ui�ue."9 i1�1I1tZIlAI1C2�lllllt iS 210[Tz�llii'C(I.
• If t112��°ZiZ�115 li2211"sealed"Uy someo�ie otl�er thau a licensed�t-e11 conh�ctor or a licensed t1•ell sealintr
eontractor,check the n-e11 stanis as"not ui use." �
Aeldirioual R'ell Ivformatton-Pro�-icle the follo�t-uig iufotYUativa.if kno�z�u: Mumesota Uuique��Tell Niunber or
Sealuig Record Ntunixr.date of tt-ell eoust�lietiori or sealing.and naute of licensed�rell conh•actur.
SKETC:H ALAP-tbu�plete tlie sketch n�ap�s instructed on the WDC.The loeation of eacli��-e11 ui�ist lx iudicated.
If the loeation�f�ti�•ell is not knoten.liat-e the��-ell loc�ted by a person qt�lified to locate��-tlls.such as a liceused
crell couti�ctor.
If you l�a�-e questions.please cont�ct diz I�1DH�Tirell Mv�gen�ent Sectiaii at bS 1-?O 1-458?or 30fl-383-9808.
To request tlus doetunzut ui another foiYnat.ca11651-?01-4600.Deaf aitd h�rd-of-heariva: TTY 651-?O1-5797.
Visit tlie 1��Il7H t�Vell Mauatremetrt Section.Nell Disclosiue Proeram��-ebsite at:
tirti�n��.health.stnte..rrlrr.t�s/dii�s/eh!►a�ells/drsclosrrr•es. �
D-3
401253v8 CBR RC125-65
C:OL�IVI'1'IISE OnZl' MDH LTS�O�TLI'
�II\�ESOTA DEPIIRT�IE\T OF HE.�I.TH
Well b4auagement Secrioa P_O.Box 64975,St Paul,Minnesata 55164-0975
652-201�587 or 800-383-9808
R�ELLDISCLOSL'RE CERTIFICATE
PLEASE 7YPE OR PRINlALL INFOR�lATION
Person filin deed must incfude a S50 fee a ble to tl�e coun recorder_
A. PROPERTY LOCATIU\LEGAL DESCRIPTIO\
Attach a legal deseription of the property_
County Section No. Taunship No_ Range No. Quarter(or Gocein►nent Lot)
Hennepin
Lot No(s). Block No. Addition Name Oudot Tract
Prcrperty Street Addreas
City/fouv.slrip ZIP Cacle Properiy ID No./Parcel No.(optional)
Richfield 55423
B. PROPERTY BUYER DIAILI�G ADDRESS A�7'ER CLOSL�G
First Name Middle Imtial Last Name
Conipany Name(if applicable)
Mailing Address
Mailing Address
City State+`Prrnitue ZIP Code Telephone No.(including area code)
�o�;a�N�of�ell��1���t� Housing and Redevelopment Authority in and for the City of Richfield
C:. C:ERTIFICATIO\BY SELLER
I certify that the iufonnatiou pro�tided on tlus ceitificate is accurate and complete to the best of my lawwdedge.
Sigoariue of 5eller or Desiguated Represeutatire of Seller Date
D. CERTIFIC'ATIOl�BY BL{YER
For fulfilluient of a couh^act for deed,the buyer or person authorized to act on behalf of the buyer,inust sign a Well
Disclosure Certificate if there is a well on the property.
In the absence of a seller's signature,the buy er,or person authorized to act on 6ehalf of the buyer u�ay sign tlus Well
Disclosure Certificate.No sigaiature is required by the buyer if the seller has signed abo��e.
Based on disclosure inforniatian pro�ided to me by the seller or other available iufonnatiou,I certify that the iufomiarion
on this certificate is accurate and complete to the best of my knoUdedge_
Signature of Buyer or Designaud Representatice of Buyer Date
I�IPORTA�"T 1�OTE: The Minnesota Depart�nent of Health(IvIDf�tivill folloa-up with the�roperty bu}�er regarding
any wells disclosed as not in tue_If a well is not in use,the propert}�on�ner��ust either rehun the well to use,ha�e the
�vell sealed by a liceiued r,�ell coutractor,or obtain an annual maintenaace pernnt from the MDH for$175.A cop}�of tlus
Well Disclosure Certificate should Ue pro�ided to the propert��buyer at the time of closiug.
D-4
401253v8 CBR RC125-65
r i [ T A AiL1'I\'ESOTA DEPART�iE\I'OF HEALTH
�VELL DISC'LOSURE CERTIFICATE ��cate Totai Ntttuber of
PLEASE TYPE OR PRINI'ALL INFORMr�TTON Wells on Property
9lM� M16iN�LTN
Fill aut a separate t��eil iufaiYUatioii gage if more tlkw tn�o wells u•e located ou the property.
E. �VELL LOCATIO�LEGAL DESCRIPTIOl\
�VELL#1—If due pro�xxty legal descriptiou Las more tlmr►�e sectioq tawvship,or raz�e uuxuber;quarter(or goeemu�nt lot);or
lot or Ulock umnUer; iide s ific le al de - �on infoimatian re din the h ical location of tiris well.
County Sectiou PTo. Township No. Rangr No. Quarter(or Go�-emnient Lot)
Hennepin
Lot No. Block No. Additiou Name Oatlot Tract MN Unique Well No.or Sealing
Record No.
R�LL STATI;S(Check only au�box) Date of Well Conshuctiou or
�t�ELL IS: ❑ In Use(1) ❑ Not in Use(2) ❑ Sealed by Licensed Well Conhactor(3)` �1�
"Call]IDH m�wi[�seal'ug record is on Sle.
Name of Licensed Well Contractor
If the�cell has been sealed by someone other ffian a liceused t�ell conhactor or a&ceased weil sealing
contractor,check the n�ell status as not in use. Aiso see"Il14PORTANT IQ()TE'"on 1_
If well is not in use,is there azt MDH��ri.vice for this�vell? If ihe�vell is not in use,is tliere an MDH waintenance penmt for
❑ Yes ❑ No this well? ❑ Yes ❑ No
If yes,pro�ide the iariance Lracking uwulxr(T1V) If yes,Proside the penuit nuwber
�YELL#2—If the lxqxrty legnl desexigtion has more than ome seclioa,tow�astup,or range mwil>er;quuter(or grn;ernuseut lot);or
lot or blodc ntw�r, rnzde "fic 1 al descri " mfom�ation r azdin the sical location of dus«ell_
County Section No. Tottnship No. Range No. Quarter(or Got emrr�ent Lot)
Lot No. Block No. Addition Name Ootlot Tract MN Uiriqt�e�Veil No.or 5ealing
Record No.
�i°ELL ST:�TI:S(Clieck only a�box) Date of Well Cousuuctiou or
aVEI.L IS: ❑ In Use(1) ❑ Not in T3se(2) ❑ Sealed by Licensed Nell Contractor(3)" ��
'C'all�IDH m a-e�-seatirg record is an Sle.
Name of Licensed Nell Contractor
If the�r•ell has beeu seated by someone other thaa a liceused well canhactor ar a licensed well sealing
contraMor,check the n�ell status as not iu use tllso see"IMPORTANT N07E"on a 1_
If well is iiot in use,is chere an MDH��iauce fa�il�is Rell? ffthe�vell is uot in use,is d�ere an MDH nnintenTnce penuit f�
❑ Yes ❑ No this vc�ell:' ❑ Yes ❑ No
If yes,procide the raciaitce eracking neuuber(TTT) ff yes,pro��ide ihe pemut number
SI�ETCH�L�P—Sketch the location of the�a ell(s)and include estimated distances from roads,streets,amd buildiugs_If more than
oue�t�ell on properh-,use the tcetl locatiou number above to identifc-each�aell.The location of the uell(s)uwst be pro�ided.If the
location of a�r�ell is noi kno�n,Lai�e the tvell located b}�a person qualified to locate n�ells,such as a licensed well contractor.
lnfonvation grocided o�n dus fa�n is classified as public infornaatiou imder Mii�nesota Statutes,C�apter 13.
To reqi�st dus docuuien3 in auoilaer foiu�at,call 651-201�600.Beaf and hard-of-hearing: TPY 651-2fl1-5797.
Visit the IvIDH�Well Manageu�ent Sectioai Well Disclosure Prog�am a-ebsite at titi��titi:health.stnte.mrzus./�nsiel�lw�ellSjCItSCIOSI(f'¢S.
HE-01387-12 IiC#1�iQ-038> arigs;nell disclosure cectificate-iustnuriaas 7;21;2011R
D-5
401253v8 CBR RC125-65
12 �2
12 ROC.�F VBJTS 8 RE(�'D LPPB2 ROOF I2 6I �6 I2
6� �6 ALIIWM.M SOFFiT 1-10USE WRAP 6� I 2
AND FASqA ALLMI�LM SOFFIT �6
ASR-I. SFINGIFS .At�D FASCIA ASPN. S4�WGLES
2• � 2' 2' I 6' I 6'
12 � � 2• 12 �
ASPN. Sf-R�K�.ES 1-IOlSE WRAP � �q 6� ROOF VENfS 2
4 VWYL SIDNG 4�— VM'L SIDMG
VNYL SIDING � C�S q� pp�$
MD COIfiH2S � �
3' � 3 3• � � 6• 3 �
. . . . � . F�� �� / 5/4x6 WWOW 7RIM � .
5/4x6 WR�DOW TRWt
24' STOhE REM1JxJ
� � � —� � � � � � � I � � �
I ' I I I ' I I ALL FTGS TO BE 42' I I I
BH.OW GRADE.
�— �— �-- �--- �— —� —� —� �-- --� .��
LEFT ELEVATION REAR ELEVATION RIGNT ELEVATION
SC.ai.E� iia' - i•-o' sCa,�e� iis• - I'-o• sCa�� iia• - i'-o'
NOTE� ALL NSULAT� WALLS ADJACB�li TO NON'FEAiID ATfiC ARF�S
MJST BE PROTEC'f� ON TFIE IXfB210R SIDE WfTla A WEAII-B2 12
BARR� VV4-AC�7 PREIIBJTS WW INTRUSION HJfO il-E WSU.Al70N. ('� — —
COVB7 WRH MATB2IALS UF� PL7VJOOD. W.4FB�BOARD. F�80/+RD. b l — —
OR FIOLISE WRAPS.
— — I2
I6
ALL NON-NDIC4'fID FEADB2� OI'BJNGS TO BE — — — — —
2-2z10'a HBvI-FR a2 OR BEff62. Fb' 100� 5/4x6 WPIDOW TRIM
� -MDICA7ES BULT-LP POST E.G. 3-2x6 �� �
ALLMn1M SOFFIT
PROVDE SOL1D BLOCKNG W JOIST SPACE AND FASCIA ArD FASCIA
�OW ALL LOAD BEN2NG PQSTS 2� � ,4 D COR H2S
5/4xb WPDOW TRIM
2'
— � � �
_ �
— � � � � � �2 °' '�
,
� 5/4v6 AQA7EC - -- 8 N Q
- Q
14-1/4' �RO� - 12 ~
_ _ �6
6x6 Ti�A'f�POSf
ALUMPa.M SOFFIT
ALIMNLM SOF�iT MD FASGA
MD FASCIA
4�av4 E M4Yi MRA7EC IX.Yd�i ��������� ��� ���...
m4`io mm��c 5/4x 10 7RIM �• 2.
i s-vx,�.
�s� INSTALL 5/4� WRAP
5/4x6 E 5/4x4 CORA62 ����� ����� l��J� �€��� ����1 {���� i�{i� (���� ����� ON EXPOSED BEAM
� ar GaaaGe ,, AT SOFFIT
6X6 ifEAl�P0.�if €
- 80J�w/061.. 2x4 7f7f. W+IH75 AT T0.5'OfC
- 3/6'C�M PLYWO00 0�8t 2W N41875 !!( !S iE !! t
- S/4x6 MRA7EC 1RM AT TfW 6VH=R7WOCU ' ����� I�I�� I��I� 'il�� I�Ii� 11I�� �III iI' { �
- 5/4zl0IrFA7C�'i 7RM AT BOTfOM O�.H7 R.YNCX7D - - I!I!! !Iltl ttttl illli IIIIS Ifii! t111� ����� il��1 - - _ - - V�� ��
- aim►marec m�.+eerw�n ra�e eorra.+�rra�n STONE PER HEVATION = MD CORt�S
48� "�' �°'�' `�,� ����� iiill II�II Illfl ?I?�� ���I� I�I�� �II?3 IIIIf
'R i i' fi €i' t'if i iiii!
Cotuvw oEt'nt. -
80Y6 �/4'. I•�Q � �
- - - PAPEL DOOR ' - -
5/4x4 DOOR TR
FRONT ELEVATION �,,�,_ �„� �,,,A„�
SCALE� 1/4' - I'-0' ��� '��
n�se as.NS aw Parirs Re,�,nN n-e No�� H.EVATION DRAWNGS ARE FOR WJSTRATION JOB ADDRESS
ocausn� con�eJru� �rr oF a�ao� ori.rr n�- uisraa� ouz srnw,nno SI-IEET
„-E o�, .� �,Y � � � o,�.� HOtvE ON A 'IYPICAL IOT. DCACT 9FVATION OF 'R�E HOME FOR TR�4Y(S � AUTUMN RY�4N KEYLAN D
ON.Y FOR Tl-E RRPOSES �7CALLY FiOA�E TO BE CX7NSiRUCTID ON YOLR LOT W6L VARY
AlJiF10RQID BY 7FE OW�. D�B�DNG IPUN MANY FACTORS. SOb1E OF il-E
� pppy� qz �� FACTORS TNAT COMvpP1Y WLL AR�CT B_EVATION �A� �Y � 9 REVSED� g.EyqTION p�N a � 9 I Oih AVH�AJE S. �� �
OF ANi' PORTION IS FORBmDFN. ARE Ti-E TOPOGRI�P{�1Y OF TFE LOT. iLE MASTH2 8-13-15
O �'R'� 200B �" '�A''° H0"� ���N��'TM�� ERIK 2 0 I 5 ,L� 3 6 9 0 RICNFIELD H o M E a 5
DESIGhH2� 62K J. q-RISiHJSON J015T5. I-BGHT CF FR57' ROOR CB.NG. ETC.
9'-8' 4' 4' 4' Ib'-4•
FOR CAB�Ef DETAL.S S� srMf
D.D.I. L4YOUT. JOB SLP aooa
TO F'OST ON SRE AT �� .3o u-vu.i.e
FRMANC's STAGE. .33 SGC
SU6GESTED HEATIN6 R�°� 3oso's u."Z'
PLUMBIN6 dc ELECTRIC S""'E
t.nvours � � _ T_����. �A
5 js�m Y? � o ac. �
� �� «�, � DINING a e•-r
ii-o:a-z ��
.28�-�� �� �R. � 8„ �
.37 S4GC Q 6 d � j� �p
R.O. 48 I/2'x 48 I/2' OM �p �
9-11 7/8'6.P. 11�M FllAa � Q n cmi°m
4040 PICT. oi
s-axio�. a =�sac"c`�'�
� � n�eso� o. �o d e.o. 3660 5 H,vr
O O �SAA�£ $AME
Rib S7lD W011 ,_ � DW.' ' '�t� 9-11 7/9'6.P. IJA1 HA6i_�
I/7 6YP511A 6 WA 9'CL6. OB12 —'—'—'—'— —' Ca R-2x6 AllL4 Q I N�� V
sia�A.rw000 cru� tes n KITCNEN I I wn i z-z.io mr+rwu��wa. �wn �I F.�
I 9' v-e K n-s 4 i r■ i r a�r�n �
� vroao R.. �; I
9/4•810E A9���• �p I � SORaT S@
CiWi RPL ���� DIIVL I 1 G � A A Y I�O �O m •
� VBJIED
1����� II-O x 17-9 I ¢� � �°mo
pg,p H MlOOD R. a• a . n �
e�. � � � �I��
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9/4 SlB-R. r' I I m I
6 p g A � I � U 9'0.O. � . �I t�6TP11 GA9
,�,� O1i� � � � FAMIL7 ROOM g o I ��'�"'� �,
g O WOOD 16-4: 17-9
� N ��o � CJ�T �=� i �D
N�OM�S.�R.OIi�9P�POR18 a� SOLD PO6� �, pg'p n Q I I 0 a �ALL
WA1H!
BENCI-I DETAIL wn II � = I � �s• - '�' .
sc�� ur . �,_�. sa•
ni I ��Vi
F � �
A f-.7
�o �� _g• n q �� ' U.
t+D StA� iu 2'-6• 6'-4' �� � �r rm
P Y�Y I � $' 5''2' �� I 1•'6' � �m ..
o � ' _5H_E aao �3 WT� �\\ i ��� a .
ppppp� 7-10 Flbfl �
� '�.� �'�'� N PR. 1-6 LFS. � 12-11 7/g 6_P. � N � �
– 1y pp��'pp 9'OD. 11�I� -11 7/e'O.P' - - -
� yQ $�e� R.� Q�� ,� � � –
� �Of ��� II-0 ft B-9 iii � � ` CN. 14 F. �( • �p
� �T I 4 n 90 VAMT
Q �� p Wq � I O w I I ' WOCO RDOR w/A14R�Y2 QA S6 W � O�Q �
�it1 �'•' �b 'n m y6 � Ib e. .
w
O I n ' � I a p F r
'm �� I I I i– n %HWO CAP � FAN �O I W �_
a � �ii � 19' E � � a��� N
O >
R'" � � Bvroco o � � d� � °m°� r�, a
- ��.� � �� � �� @ � `"
FA7���m i�� l�7_N 7LibS ' � lP 16 R. � n
1 I 8' Ar w'a.� q.-4' 4'-9' 5'-I 2'-2' 2' 4 10' 4'-8'
in
"' � NSTALL 2x6 S`TLOS AT ALL GPRAGE WAL.S I �� ` e
� +II cFaD� W/Fpa.B
� GAI2AGE � , e n sr w�i N� a
iu �
�o � III eatn7e'rtass�na� � '� N I 9 YEI2 ^ � a�=� –
r"�sr�n�aa.�nmrx �iae°ra9O � .
�'+ ��� 6/B'R.C.61P. 6im. AT CL6. wWD O n r�� .
. Q III 1/2'G1P. 6A. AT WM18 _ � ON , .. _ �
� WA m Ot
'pp , � 111 I�S11AiE M�D SffTROf:K 90 �
�6M�KE W.4LL5
i� a ��m � III e I ' S.L. 14' S.L.
t� -I � �i� B fbTa1L D�Oii f7.0. 69 /T x 82'.YB'
ai �� "�i • III �� sa R°°R m� 5 6
r�aS�-� SOUARE F�1' ..�a o nr u o.a s i �ia o.r. u�.f•.
FRST Fl_OOR 1301 •o�o FI �� -- -- -- ---- —
� � N III
�ROaa io90 � o I ia' z a• e•St�4'r� oN 000R —1 �� 1
p� � III I I � A �III N
TOTAL 2891 ioci+m i�II( I �a ���� _
��+� ��„���� � =III
� �;�,���
� �.��;�;,�T.O.F. corvc. sroor� �III
PL � 3690 III� � ���
!-I I 7/8'B.P. LW.t WR. 3-I I 7/A'B.P. LCM BEAM
9"2r6'� _ _. — _ _ — _ ._ _ - -
FIRST FLOOR PLAN �„�=-=_-_=-_=-__ - -- --- ------
SCNP� I/4' ' I'-0'
� NSTALL 48' NGH STO�E P62S c ts��wa oainra oEtas�
30'-6' 17'-6'
7309 IOfh AVENUE S. RICHFIELD
36'
—� SUG6ESTED HEATIN6
� PLUMBIN6 d�ELECTRIC
18'-I' b''7'I I 1'-4' �y�UTs
I
3'-3' i 3' 3'-4' 5'-I O'
.ao u-vNIF
.33 51�'iC — � .30 U-VALLE I.30&RaC
wTDOW S70P .33 SI� .30 U-VnLE
NTDOW 6TOP R.O. 36 1 t 30 1/2• .3a g16C
R.O. 42 ur x ao ur a.o. az v2•.ao ur 3026 IAWNNG R.o. bo u2•x aa v2•
3650 S.H. 3650 S.H. _�x�py 5040 GLID92
. W4 2-2rI0Y 2-�IOY �W4 r � 1-4i10'I I . .
I �,y� W�
. . . . . . cne.e� L��� . I . .
�° weT«s. ��� LAUN I
� OWNERS SUITE �'� �,,. BEDROOM u4 I
� 17-4 x 16-0
m Cl�ET M a 10-0 x 19-0 I �
� N CPIBET
w F � LT I M
b� ? �U A � –
� :a �K
d nm�� � � I
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AT 24' .C. I
o m ��es esaE
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�—— L AT Y4'O.C. � I
W� 6'
I s � r_�c I
I � o�
I 3'-8' a'-8' 9'-8• O � L ' �o IQ I =
5 �4
x' �E 4 x� S M �� � a
INo sav� — I
� � ��G W.I.C. a'° s+. e�oo �
- I '��Q o i cx�r � 1I�
= M � �� � Qu
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I � �N
0 0 �o Lsam J � a• � F..� «�n �
a Q1
a_
F,,,,, ' �,.. LOFT AREA � ��
� I (�wn BATN ' ��
L� ca+n�ac �neove �°n o
AT 24'O.C. p
�o �——— w7� � � 3'-10' S' b'-4' - O
q N —
I ^
� 91. E AOD �
_ _ �
S M I dt � P.A.
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,� I �I � 26 ' � I� � 60'VMIi7
IM � w/AidSQ �{
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s,. c aoo RA BATN �' � �+
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I � ylryL i�p
RA r wc WA�
6'-10' - --
� x-zx�o Fax.
I � iGl�A60�£ � ,4�� R.O. 36O?2'A 30�' ; I
AT 24 O.C. p
I .Y9 U-VALIE F
Cev c .18 S1f;C I
I � i 6' �
� I ' � BEDROOM tt3 I
� BEDROOM tt2 i�-6, i4-io � � �
I I 1-6: 19-0 �T �
� 12'-3' 12'-3' I
P� � 3690 i i
SECOND FLOOR PLAN � '"" "'"
I � z-��o•. z-�.�o�. � I
SCAIE� 1/4' - I'-O' t�-- - ------- - ----J
6'-3' 6050 GLIDER 6050 GL1D6Z 6'-3'
R.O. 72 1/2"R 60 I/2' R.O. 72 I/2'R 60 1/2'
.30 U-VAUE m'���� �'�W ST� .3O U-VAl1E
.34 31GC 2a'-6• .34� ��'-b• 7309 IOth AVENUE S. RIC!-�IELD
b' 9'-8' � I 2' I 6'-4•
-.--— — ———. SU66ESTED HEATIN6
LIGHT F'IXTURE SGHEDULE � � �_ __�_ _ � PLUMBING�/dc ELECTRTC
8'P011�WPL.B-4 TPL. ' A 7 O��C
11%'.A7. F9CRf� WATT TTPE H7ffi COAB�I$ ��� I a � �. I
A i�S6 4s CR I RA7 ii3.t I I 16•x 9'QOD1C. Ff6. I I I.A J
8 I�fIP'S OR PORC8M1 60 NCMD I 'a �O
C MNC 1030F� IS CR. 1 I I �P.C. J,' I " I
O �
D �uuc �aesa+ is w. i B �d,� I .' I
� M4X IOI40Wbq 19 Qi. 2 � • I b-
F nwx eeaow�wr is a3. i — — — ^Q I I
. ^, � , ,. a'• _
G nax �oisswsa is ca. a .
N so6ao5-t�.-rmz is a� i I — ———N -� � � �iean�r
I MAX 5841WS01 19 CR 4 c� � . 9-11 7/B'6.P. tFAt A41. — -- --- ---_
.I AIPJC 2121W901 19 tli 2 � I a 6'���� �T'�' I ��-� -- - �J�M POq�T�_ : •• : •. a
K MA% 10121N5q 19 tl3 9 — — ———— —— — �7
L MAX 5B70�p ��g CR � � - -- -J : � � L_��,,.C�i FOOitJO 70 g F�,NNI.B-4 TAI,. I � I .
� M M41C 38BIVRWf IS pi 2 . . < . . .' - �i 96'x 96'x B'�fE. . 16'x 6' . FfG. . . .
O CN'P�2401 lO5 CA O4 S4TC0�7304 I � a � I � ND RJS7 �I
U
P as. Fw+w uca�r is a3 a � I � � �� �° B�ROOM tt5 �I I I
I . I °��M�I I� ^Q ii-o. iz-o �I I • I
a _ �I No�s+
a I .,. I $��,�I �� - e�P��• �� RECREATION ROOM �� I I
� i I 12-0 t15-9 �tl I .' I
I I $�I IP ,� P.C. e �-
I I � � �n �.�I��. �. I; �B P.C��° �Q I ' I P
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96•x 96':8`Cpi,. F78.
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I ra�w. — � II � / �� � ra•x a�cara. Fre.
I � �q� I L �� i �� rl__� J gS�4�T3�TO0t�K.. Ff6.
8'-1 0' I � 5' 9'-8' 6'-5' I I'-8 I
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� �I� I� f m'-Iss�.Pevosrsi°rNOaac. �c. � • �s.s snne �a•auc.
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��—�` 'I� �-CO . � 16'x S COPC. FIG.
I �jyy.yl. 2-I I 7/B'C.P. WA 9�1� I \ I I��I Y-I I 7�8'O.P. lAM 9�1. � 6� � . Z_ �� J ; I
LOLA.._.I
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I ��, O r�s' — � Ir'1,. BATN � •�inas•I� a�a snns ia•ac. — ' I
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_ r—————— —— — ————— — ——. .\ e -
7 L�CE E'0�8-4 T cv S.R.W w/ � �J I
II CMT TCP POIR 16's B CONC. F7H. • �� �._4. � K'8• I I ALL�16'OAC.
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AGENDA ITEM#: 5
REPORT#: 29
STAFF REPORT
� � �
���� � � �� HOUSING AND REDEVELOPMENT
, ,
AUTHORITY MEETING
� '` SEPTEMBEll2 21, 2015
REPORT PREPARED BY: MYRT LINK, COMMUNITY DEVELOPMENT
ACCOUNTANT
NAM/i, TI'!'l,li
REPORT PRESENTER: � JOHN STARK, COMMUNITY DEVELOPMENT
DIRECTOR
NAnar:,Tirir:
DEPARTMENT DIRECTOR REVIEW: �� _
_ � ,�.
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r`{� �l �',, t
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REVIEWED BY EXECUTIVE DIRECTOR: � �
� «.,��. �
�
ITEM FOR HRA CONSIDERATION: �
Consideration of the Richfield Housing and Redevelopment Authority Tax Increment District
Status Update.
I. RECOMMENDED ACTION:
By Motion: Accept the Richfiefd Housing and Redevelopment
Authorit Annual Tax increment District Status Update.
II. EXECUTIVE SUMMARY
The Tax Increment District Status Update (TIF Status Update) is presented to the
Richfield Housing and Redevelopment Authority (HRA) annually for review. There
are currently 9 active TIF Districts and we are in the process of certifying District
2014-1 (former City Garage/mortuary). This year, the TIF Status Update shows that
the HRA is able to meet all of its Pay-As-You-Go Note and General Obligation Tax
Increment Bond obligations.
HRA Staff and consultant Rebecca Kurtz (from Ehlers & Associates) will provide a
brief summary of the TIF Update at this meeting.
III. BASIS OF RECOMMENDATION
092115 TIF Status Update
A. BACKGROUND
• The annual TIF Status Update is provided to the HRA to summarize
tax increment financial activity and comment on the status of the
HRA's ability to meet its tax increment obligations.
B. PoLICY
• The TIF Status Update is presented annually to keep the HRA
informed of the ability to meet outstanding obligations.
C. CRITICAL TIMING ISSUES
• None
D. FINANCIAL
• See detailed TIF Status Update attached.
E. LEGAL
• N/A
IV. ALTERNATIVE RECOMMENDATION(S�
• Reject the conclusions made in the TIF Status Update.
V. ATTACHMENTS
• Tax Increment Distric# Status Update
• Map
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• Rebecca Kurtz, Ehlers &Associates
�'
T x Increment District
a
Status U
p
date
_.__..
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Richfield Housing and Redevelopment
Authority
September 21 , 2015
v�nnlw,ehlers-inc.com
�,�� —
�� F�_ �� �� �v Minnesota phone 651-697-8500 3060 Centre Pointe Drive
.,. LEADERS IN PUBLIC FINANCE Offices alsa in Wisconsin and Illinais fax 651-697-8555 . Roseville,MN 551 1 3-1 1 22
tafl free 800-552-1171
Tax Increment Financing District Summary
Conclusion
� The Richfield Housing and Redevelopment Authority(HRA) will be able to meet all of its tax
` increment Pay-as-you-go and Bond obligations by the decertification of each district. Currently it
is not anticipated that the HRA will be able to pay the full principal and interest on the Interfund
Loan for the Interchange Lyndale Gateway West(Kensington Park)project unless market values
appreciate and/or the HRA pools funds from other resources.
Richfield Redevelopment Project Area
In 2005,the boundaries of the Richfield Redevelopment Project Area were expanded and set to
be the same as the City's boundary in order to expand housing program service areas and provide
a wider area of tax increment spending authority.
The Richfield Redevelopment Project area currently contains 10 tax increment financing
districts:
• Interchange (Dick's Sporting Goods)
• Urban Village (Southeast corner of Lyndale and 66th St.)
• Gramercy (Gramercy Park Senior Housing)
• Interchange West/Lyndale Gateway (Best Buy and Main Street Village)
• City Bella(City Bella Housing Cooperative)
• Lyndale Gateway West(Kensington Park)
• Cedar Corridor(along Cedar Ave.)
• 2010— 1 Housing (Lyndale Plaza/Woodlake Housing)
• Lyndale Gardens (former Lyndale Gardens site)
• 2014-1 TIF District(former City garage site)
Obligations
The HRA has three types of obligations associated with these districts:
1. Pay-As-You-Go Revenue Note. These Notes pledge to the note holder a certain
percentage of the available tax increment from the specific district or specific parcels.
Less tax increment receipts result in lower Pay-As-You-Go payments. To the extent that
the increment is not available to make the payment,the HRA is not required to meet the
obligation.
Current projections show that the HRA will be able to meet all of its Pay-As-You-Go
Revenue Note obligations.
2. General Obligation Tax Increment Bond. These Bonds are intended to be paid with
tax increment revenue; however,they are general obligations of the City. Therefore,the
pledge is that if on an annual basis there is not enough tax increment to pay the payment,
the City agrees to levy a property tax to pay balance of the debt payment. This has never
happened with Richfield TIF debt.
2
Currently,there are bonds outstanding in the Interchange West(Best Buy) and Lyndale
Gateway West(Kensington Park) districts.
3. Interfund Loan. These Loans provided up-front money from various HRA sources to
assist with projects. The loans are normally repaid from tax increment or land sale
revenue.
Assumptions
All projections are based on the most conservative assumptions. The calculations do not include
any interest on invested cash or inflation on property market values.
Cash balances/deficits are as of December 31, 2014.
Although Lyndale Gateway (Twin Cities Christian Homes)used a 3%market value inflation
assumption at time of closing, a 0%market value inflation rate is being used in order to be
conservative.
3
Interchange TIF District Update
The Interchange District is a commercial redevelopment project comprised of the Dick's
Sporting Goods store located along I-494. In 2004, Galyan's Trading Company became a
wholly owned subsidiary of Dick's Sporting Goods.
First Year of Increment: 1998
Estimated Decertification Date: 2023
Outstanding Obligations
• $3,323,309 Pay-as-you-go Revenue Note
The Interchange District has a cash balance of$97,767.
Conclusions
The HRA will be able to meet its debt obligation.
4
Urban Village TIF District Update
The Urban Village TIF District is a mixed-use redevelopment project located on the southeast
corner of Lyndale and 66th Street. Tax increment revenue is pledged to the project to assist
with property acquisition and excess site development expenses. Fifteen percent(15%) of the
annual tax increment is contributed to the Housing and Redevelopment Fund for use on TIF
eligible, redevelopment expenses.
First Year of Increment: 2000
Estimated Decertification Date: 2025
Outstanding Obligations
• $2,500,000 Pay-as-you-go Tax Exempt Tax Increment Revenue Note A
• $2,388,414 Pay-as-you-go Taxable Tax Increment Revenue Note B
The Note A currently has a rate of 2.77%. By Agreement, the rate will be reset in August 2016.
The Urban Village District has a cash deficit of$(41,707).
Conclusions
The HRA will be able to meet all of its debt obligations.
Although the cash balance was negative at the end of 2014,projections show that the District
will have a positive cash balance in the future. The negative balance is due to the timing
difference from when obligations are paid and tax increment revenue is collected.
5
Gramercy TIF District Update
The Gramercy TIF District is a redevelopment project that includes the Gramercy Park Senior
Housing Cooperative. Tax increment revenue is pledged to the project to assist with property
acquisition expenses. Fifteen percent(15%) of the annual tax increment is contributed to the
Housing and Redevelopment Fund for use on TIF eligible expenses.
First Year of Increment: 2002
Estimated Decertification Date: 2025
Outstanding Obligations
• $1,977,000 Pay-as-you-go Tax Increment Revenue Note
The Gramercy District has a cash balance of$119,720.
Conclusions
The HRA will be able to meet all of it debt obligations.
6
Interchange West / Lyndale Gateway TIF District Update
The Interchange West/Lyndale Gateway TIF District has two components: (1) Interchange
West; and(2) Lyndale Gateway.
Interchange West Component
The Interchange West component is comprised of the Best Buy Corporate Headquarters
located on the intersection of I-494 and Penn Ave. Tax increments are pledged to the Best Buy
project to assist with site assembly activities. The HRA retains 25% of the annual tax increment
for administration(up to 10%maximum) and for the Housing and Redevelopment Fund for use
on TIF eligible, redevelopment expenses.
First Year of Increment: 2004
Estimated Decertification Date: 2025
Outstanding Obligations
• $22,190,195 Pay-as-you-go Tax Increment Revenue Note
• $6,355,000 Tax Exempt General Obligation Tax Increment Refunding Bonds, Series
2010B.
The Interchange West Component has a cash balance of$1,433,770.
Conclusions
The HRA will be able to meet all of its debt obligations.
Lyndale Gateway Component
The Lyndale Gateway component is comprised of the Richfield Senior Housing project(Main
Street Village) and the Minnstar Builders, Inc. project(Casteel Place Townhouses). Tax
increment revenue is pledged to the project to assist with site assembly expenses.
In 2002,the HRA loaned Richfield Senior Housing, Inc. $338,251.76 to assist with an
unexpected condemnation award in acquiring a portion of the redevelopment property. The loan
was paid off by the developer in December, 2004.
For the Minnstar Builders project, Casteel Place Townhomes, the Contract for Private
Redevelopment included a"look back"provision that required a review of the developer's costs.
To the extent that certain costs would go up or down under the estimate, the associated Pay-as-
you-go Revenue Note would be reduced by a like amount. The "look back"provision analysis
was completed in 2002, which called for a reduction in the Pay-as-you-go Revenue Note from
$100,000 to $19,985.23. The cost savings of this tax increment is being used as additional gap
funding for the Cornerstone/Kensington Park redevelopment project in the Lyndale Gateway
West District. The last increment payment to Minnstar Builders was February l, 2005.
7
First Year of Increment: 2000
Estimated Decertification Date: 2025
Outstanding Obligations
• $3,300,000 Pay-as-you-go Tax Increment Revenue Note to Richfield Senior Housing
The Lyndale Gateway Component has a cash balance of$283,982.
Conclusions
The HRA will be able to meet all of its debt obligations.
8
City Bella TIF District Update
The City Bella project is a redevelopment district consisting of a housing project with a retail
component located on Lyndale Ave. and 66th Street. Tax increment revenue is pledged to the
project to assist with property acquisition and site improvement expenses.
The City Bella Project has a$450,000 loan from the Development Account to pay for land
owned by the HRA. This loan will be paid by using 15% of the annual tax increment. After the
loan is paid in full, 15% of the annual tax increment will be contributed to the Housing and
Redevelopment Fund for use on TIF eligible expenses.
First Year of Increment: 2006
Estimated Decertification Date: 2030
Outstanding Obligations
• $8,473,470 Pay-as-you-go Tax Increment Revenue Note
• $450,000 maximum Interfund Loan from the Development Account for land acquisition.
As of December 31, 2014, it has an outstanding balance/expenses incurred of$116,091.
The City Bella District has a cash balance of$178,494.
Conclusions
The HRA will be able to meet all of its debt obligations.
9
Lyndale Gateway West TIF District Update
The Lyndale Gateway West TIF District is comprised of the Cornerstone/Kensington Park
mixed-use redevelopment project located on Lyndale Avenue. Tax increment revenue is pledged
to the project to assist with site assembly expenses.
First Year of Increment: 2006
Estimated Decertification Date: 2029
Outstanding Obligations
• $2,970,000 Taxable General Obligation Tax Increment Refunding Bonds, Series 2012B.
• $1,100,000 Interfund Loan funded with proceeds from the Bonds of 1996 for gap
financing
The Lyndale Gateway West District has a cash deficit of$(404,225).
Conclusions
Under the current circumstances, the HRA will be able to meet its debt obligation for the Series
2012B bonds by the time the District is decertified. As in past years' projections, ultimately,
there will be money to pay the bonds solely from TIF; however,projections show a few years
where the increment will not cover the debt payments. A loan from another funding source may
be needed, and the loan could be paid off from the additional increment after the bonds mature in
2025.
Under current market values and tax rates, it is projected that there will not be sufficient tax
increment to pay the Interfund Loan in its entirety (principal and interest). To the extent that
market values increase or increment can be pooled from other TIF districts, the shortfall could be
reduced.
Tax increment from the Minnstar Builders townhouse project in the Lyndale Gateway District is
also being used to pay obligations related to the Kensington project.
10
Cedar Corridor TIF District Update
The Cedar Corridor TIF District is a redevelopment district comprised of the commercial/retail
redevelopment in the Airport Noise Impact Area. This area is located along Cedar Avenue and
66th Street. This District was established in 2006 using Special Legislation from the Laws of
Minnesota 2005, ChapteN 152, Article 2, Section 25.
First Year of Increment: 2008
Estimated Decertification Date: 2033
Outstanding Obligations
• $200,000 maximum Interfund Loan from the HRA General Fund for qualified costs. As of
December 31, 2014, the outstanding balance/expenses incurred are $37,645.
• $550,000 maximum Interfund Loan for land acquisition from the Development Fund. As of
December 31, 2014, these funds have not been spent.
• $780,000 Interfund Loan from the City PIR Fund for HRA assessments related to Richfield
Parkway. Payments begin in 2017.
The Cedar Corridor District has a cash deficit of$(779,692).
Conclusions
The District currently does not have any financial obligations with a third party. Development
and increment will be needed to repay the interfund loans related to qualified costs. It is intended
that the Loan from the PIR Fund will be paid at the time the land is sold.
11
2010-1 Housing TIF District Update
The 2010-1 Housing TIF District is a housing district comprised of the Lyndale Plaza/
Woodlake Housing development at the site of the former Woodlake Plaza Shopping Center site.
The apartment complex contains 94 units of rental housing, including 19 units that are affordable
to families at or below 50% of the area median income for Hennepin County, as determined
annually by the Minnesota Housing Finance Agency. These units will remain affordable for the
term of the tax increment.
First Year of Increment: 2014
Estimated Decertification Date: 2034
Outstanding Obligations
• $822,000 Pay-as-you-go Tax Increment Revenue Note A
• $500,000 Pay-as-you-go Tax Increment Revenue Note B
• $85,000 HRA Property Reimbursement Note, which has an outstanding balance of
$89,449 as of December 31,2014, due to accrued interest.
• $200,000 maximum Interfund Loan for qualified costs from the HRA General Fund. As
of December 31, 2014, the outstanding balance/expenses incurred are $18,743.
The 2010-1 Housing District has a cash balance of$72,488.
Conclusions
The HRA will be able to meet its debt obligations.
12
Lyndale Gardens TIF District Update
The Lyndale Gardens TIF District is a redevelopment district comprised of the former Lyndale
Gardens site, located at 6400 Lyndale Avenue South. To date the development includes the
LakeWinds Food Co-op. Additional development is proposed to include 156 units of market-rate
rental housing. The development is also anticipated to include an open-air market/pavilion, a
performance stage, a splash pad and several trail connections in a quasi-public setting.
First Year of Increment: 2014
Estimated Decertification Date: 2039
Outstanding Obligations
• $200,000 maximum Interfund Loan from the Development Fund for qualified costs. As
of December 31, 2014,the outstanding balance/ expenses incurred are $49,159
Approved Obligations
The HRA has entered into a Development Agreement to issue the following obligations after the
developer submits documentation of qualified expenses and complies with the requirements in
the Agreement:
• $5,616,000 Pay-as-you-go Tax Increment Revenue Note A
The Lyndale Gardens TIF District has a cash balance of$4,241.
The District currently does not have any financial obligations with a third party. Additional
development and increment will be needed to repay the interfund loan in fulL
13
2014-1 TIF District Update
The 2014-1 TIF District is a redevelopment district located on the former City garage site,
includes three other parcels on the block, including the former mortuary. This area is located
between 76th and 77th Streets and Pleasant and Pillsbury Avenues. The District was adopted
in February 2014. The District will be adopted in 2015 in anticipation of a development
proposal. The TIF Plan anticipates the development of multi-family housing on the site.
The District was established in 2014 to allow for the demolition of existing buildings for public
safety reasons and to allow the expenses to be reimbursed through future tax increment. A
majority of the demolition was completed by October 2014.
First Year of Increment: 2018 (anticipated)
Estimated Decertification Date: 2043
Outstanding Obligations
• $300,000 maximum Interfund Loan for demolition and other qualified costs from the
Capital Improvement Reserve Fund. As of December 31, 2014,the outstanding balance/
expenses incurred are $217,009.
The Cedar Corridor District has a cash deficit of$(212,661).
Conclusions
The District currently does not have any financial obligations with a third party. Development
and increment will be needed to repay the interfund loan.
14
Decertified Tax Increment Financing Districts
The HRA has decertified six TIF Districts:
• Interstate-Lyndale-Nicollet (ILN) TIF District(a redevelopment district)was
decertified as of December 31, 2012.
• Pre-1999 Richfield Rediscovered TIF District(a scattered site redevelopment district)
was closed as of December 31, 2010.
• Post-1999 Richfield Rediscovered TIF District (a scattered site redevelopment district)
was closed as of December 31, 2010.
• Lyndale-Hub-Nicollet(LHN) District (a redevelopment district) was closed as of
December 31, 2002.
• Cedar Avenue Business Area (CABA) District(an economic development district)
ended in 1996. All of the accounting transactions to close the District were completed by
December 31, 2000.
• Penn Avenue and Sixty-Sixth Street (PASSS) District(a redevelopment district)was
established in 1989 and terminated in 1996 due to a lack of feasible redevelopment
opportunities.
15
Housing and Redevelopment Fund
The Housing and Redevelopment Fund is a revenue source comprised of tax increment from the
Gramercy,Urban Village, Interchange West/Lyndale Gateway, and City Bella TIF Districts.
The purpose of the Housing and Redevelopment Fund is to fund a variety of housing needs for
the community, including but not limited to, new construction of single-family homes and town
homes; single-family home renovation and rehabilitation; and apartment rehabilitation. Funds
must be spent on eligible,redevelopment tax increment expenses.
Currently, a portion of the tax increment revenue from the Gramercy, Urban Village and Lyndale
Gateway/Interchange West TIF District are being transferred to the Housing and Redevelopment
Fund. The Housing and Redevelopment Fund is used to support the New Home Program,
Transformation Housing Program (a deferred loan program),the Kids at Home Program, and the
Richfield Rediscovered Loan Program. A breakdown of the fund balance follows:
Gramercy $153,597
Interchange West 1,367,201
Urban Village 418,285
Total Housing and Redevelopment Fund: $1,939,083
16
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AGENDA ITEM#: 6
REPORT#: 30
STAFF REPOR'T
P� � �+'
� ��� ' E � � HOUSING AND REDEVELOPMENT
� �
t�� AUTHORITY MEETING
SEPTEMBER 21, 2015
REPORT PREPARED BY: �REN BARTON, ASSISTANT COMMUNITY
DEVELOPMENT DIRECTOR
NAME,T/TLG
REPORT PRESENTER: ��N BARTON, ASSISTANT COMMUNITY
DEVELOPMENT DIRECTOR
NAME,Tl7LE
DEPARTMENT DIRECTOR REVIEW: � ; - �
� �
�,•' �-e^- si •c}� I
Ff���� �� �'�
REVIEWED BY EXECUTNE DIRECTOR: � ��� 'i ' ' ; ' , ;
ITEM FOR HRA CONSIDERATION:
Consideration of a Preliminary Development Agreement and a Right-of-Entry Agreement
between Mesaba Capital Development, LLC and the Richfield Housing and Redevelopment
Authority relating to the pro osed develo ment of the former Cit ublic works site.
I. RECOMMENDED ACTION:
By Motion: 1) Approve the Preliminary Development Agreement
between Mesaba Capital Development, LLC and the Richfield Housing
and Redevelopment Authority relating to the proposed development
of the former City public works site; 2) Approve the Right-of-Entry
Agreement befinieen Mesaba Capital, LLC and the Richfield Housing
and Redevelopment Authority relating to the proposed development
of the former City public works site; and 3) Authorize execution of
both agreements by the Housing and Redevelopment Authority Chair
and Executive Director.
II. EXECUTIVE SUMMARY
At the August 11, 2015 joint worksession of the Housing and Redevelopment
Authority (HRA), City Council and Planning Commission, the Council, HRA and
Planning Commission directed staff to draft a Preliminary Development Agreement
between the HRA and Mesaba Capital Development (Mesaba) for the proposed
09212015 Preliminary Development Agreement-Mesaba Capitalxxx
development of the former City public works site (211 76th Street West, 7608
Pillsbury Avenue, 7600 Pillsbury Avenue and 7644 Pillsbury Avenue).
The Preliminary Development Agreement provides for the support and cooperation
of the HRA relating to Mesaba's efforts to develop a feasible proposal in exchange
for Mesaba undertaking the activities described in the Preliminary Agreement.
The Right-of-Entry Agreement allows Mesaba to enter the properties for the
purpose of conducting land surveys, geotechnical testing, and other related studies.
III. BASIS QF RECOMMENDATION
A. BACKGROUND
• In July of this year, Mesaba approached HRA staff expressing interest
in developing the former City public works property.
• Mesaba presented a preliminary concept plan for development of the
property to the HRA, City Council and Planning Commission on
August 11, 2015.
• Mesaba held a public neighborhood meeting on September 2, 2015 to
garner feedback from residents in the area. Letters were direct-
mailed to residents and information about the meeting was posted on
the City's Facebook page and Twitter. Four residents attended the
open house.
• The Preliminary Development Agreement requires Mesaba to:
o Complete a general development plan for Sketch Plan
Review by the HRA and City Staff no later than
September 30, 2015;
o Provide the HRA with a financial feasibility analysis of
the Project, including sources and uses and a Project
pro-forma by November 1, 2015;
• The Preliminary Development Agreement states that the HRA:
o Agrees to cooperate with Mesaba and utilize its best
efforts to accomplish the objectives stated above,
including possible tax increment financing;
o Will not solicit proposals from any third party or respond
to offers regarding the proposed sale or development of
the HRA property, will not sell or encumber the HRA
property, and will not enter into any agreement for
development of the HRA property during the term of the
Agreement; and
• The Preliminary Development Agreement requires both the HRA and
Mesaba to:
o Attempt in good faith to negotiate the te_rms of a
purchase agreement for the conveyance of the HRA
property to Mesaba by December 21, 2015; and
o Attempt in good faith to negotiate the terms of a contract
for private development on or before December 21,
2015.
B. PoLicY
• 2008 Comprehensive Plan:
o Maintain a housing supply that meets changing needs
while sustaining the integrity of existing neighborhoods,
o Maintaining a diversity of housing types and prices
ranges.
C. C�TICAL Trn�nvG IssuEs
• The term of each of the agreements expires on March 31, 2016.
• The Preliminary Development Agreement can be terminated by either
party upon five (5) days written notice.
D. Fn�aNC1aL
• The Preliminary Development Agreement provides for the
reimbursement of all out-of-pocket administrative costs incurred by the
HRA relating to the negotiation and preparation of the Agreement and
other documents and agreements in connection with the activities and
the prospective development project, as well as reimbursement of
nominal staff time in the amount of$2,000.
• The development is in an existing Tax Increment Financing (TIF)
Redevelopment District. Any financial assistance to the development
through TIF would require verification of necessity and approval by the
City Council and HRA.
E. LEGAL
• The HRA attorney drafted the Preliminary Development Agreement.
• Eventual redevelopment of the HRA property will be in accordance
with a contract for private development or other agreements.
• The Right-of-Entry Agreement must also be approved and executed
by the City Council.
IV. ALTBRNATIVE RECOMMENDATION�S�
• Do not approve the Preliminary Development Agreement.
• Approve the Preliminary Development Agreement with modifications.
V. ATTac�ENTs
• Preliminary Development Agreement.
• Right-of-Entry Agreement.
• Map of development area.
• Preliminary site ptan.
VI. PRINCII'AL PARTIES EXPECTED AT MEETING
• Della Kolpin and Bo Nickoloff, Mesaba Capital Development, LLC
• HRA Attorney
PRELIMINARY DEVELOPMENT AGREEMENT
THIS PRELIMINARY DEVELOPMENT AGREEMENT (the "Agreement") is
made and entered into this day of , 2015, by and between the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota, a Minnesota public body
corporate and politic ("HRA") and Mesaba Capital Development, LLC a Minnesota limited
liability company (the "Developer").
RECITALS:
First: The Developer and the HRA have been engaged in informal discussions regarding
the possible development of certain land that is legally described in the attached
Exhibit A (the "Project Area");
Second: The HRA has established the 2014-1 Tax Increment Financing District (City
Garage Site) (a redevelopment district) for the Project Area;
Third: The Developer is proposing redevelopment within the Project Area which will
consist of a multifamily housing development consisting of approximately 52 assisted
living units and approximately 34 memory care units (hereinafter the "Project");
Fourth: Based on initial reviews of the proposal, it appears that the Project is potentially
feasible; however, further review and detail are needed;
Fifth: The parties wish to cooperate in further analyzing the potential and feasibility of
the Project and are willing to proceed with such analysis as described in this Agreement;
Sixth: The parties acknowledge that the Developer will expend substantial time and
effort, and incur substantial expense in pursuing the Project;
Seventh: The Developer is willing to undertake the activities described in this
Agreement only with the reasonable assurance from the HRA that it will support and
cooperate with the Developer in its efforts;
Eighth: The HRA and the Developer have executed this Agreement to document their
understanding with respect to the proposed Project.
AGREEMENT
NOW, THEREFORE, in consideration of the premises and mutual obligations of the
parties contained herein, each of them does hereby represent, covenant and agree with the other
as follows:
1. Statement of Intent.
It is the intention of the parties that during the term of this agreement the following
activities will take place:
1
466878v1 JAE RC125-347
(a) Plan Review and Refinement. The Developer will complete and provide the
general development plan, including parking layout and design, to the City and
HRA for review and comment. This submission shall be made on or before
September 30, 2015 as an Application for Sketch Plan Review. This Review
involves a staff review of the general development plan by City staff. Following
the Sketch Plan Review, the Developer will undertake any additional studies or
refinements to the General Development Plan for the Project that are necessary
to determine that the plan (i) complies with the City's land use requirements; and
(ii) provide sufficient detail to permit the reviews described in paragraph (d)
below. Upon completion of the staff-level Sketch Plan Review, either party may
request that the General Development Plan be brought before a work session of
the City Council and/or HRA.
(b) Financial Feasibilitv. The Developer will provide to the HRA a financial
feasibility analysis of the Project, including a detailed sources and uses of all
funding and all expenditures expected for the construction of the Project and a
Project pro forma on or before November 1, 2015. The financial feasibility
analysis should specify what financing will be obtained for the Project and from
what sources and the amount of equity to be contributed to the Project.
(c) HRA Analysis of Project. Following the receipt from the Developer of the
information set forth in Section 1(a) and (b), the HRA's fiscal consultant will
conduct a financial analysis of the Developer and the Project. The purpose of the
HRA's analysis is to determine the Developer's ability to finance the proposed
Project. The analysis wili consider such factors as the Developer's capability to
arrange for financing, the anticipated level of assistance available to the Project
from the HRA or other sources, and the Developer's ability to provide equity to
the Project.
(d) Acquisition of HRA Properties. The HRA currently owns three properties in the
Project Area and will acquire one property from the City of Richfield (7644
Pillsbury). The four properties that are owned or will be acquired by the HRA
are hereinafter referred to as the "HRA Property." The HRA understands that in
order for the Project to proceed, the Developer must purchase the HRA Property.
(e) Purchase A�Lreement. On or before December 21, 2015, the parties will attempt
in good faith to negotiate the terms of a purchase agreement (the "Purchase
Agreement"), which will provide the terms and conditions necessary for the
HRA to convey the HRA Property to the Developer. The conveyance of the
HRA Property to the Developer is solely within the discretion of the Board of the
HRA. The Board of the HRA must hold a duly noticed public hearing before
determining whether to convey the HRA Property to the Developer.
(� Contract Negotiation. On or before December 21, 2015, the parties will attempt
in good faith to negotiate the terms of a contract for private development (the
"Contract") which will provide the nature and timing of the private
2
466878v1 JAE RC125-347
improvements to be constructed, the form, the amount and conditions of any
economic assistance to be provided by the HRA in aid of the Project. The
Contract will contain such additional terms as either party believes are necessary
for the transaction.
(gh) Ri�ht of Entrv. The HRA and the Developer will enter into an agreement
providing the Developer with the right to enter the HRA Properties so that the
Developer may determine if the HRA Properties are suitable for the Developer's
intended uses.
2. Undertaking bv Developer.
During the term of this Agreement, the Developer will undertake all of the activities
necessary, in the Developer's discretion, to accomplish the activities described in
paragraph 1 required to be performed by the Developer.
3. HRA's Undertakin ag nd A�reement.
(a) The HRA agrees to cooperate with the Developer in the Developer's
undertakings, agrees to utilize its best efforts, subject to the Developer's
performance, to accomplish the activities described in paragraph 1 above, which
includes an analysis of the financial feasibility of the Project and the nature, area,
and financial implications of any tax increment district which might be
established.
(b) The HRA further agrees that during the term of this Agreement the HRA will not:
(i) provide or enter into an agreement for development or the provision of
financial assistance to any third party in connection with any proposed
development of the HRA Property, (ii) solicit proposals from any third party or
respond to offers regarding any proposed sale or development of the HRA
Property, or (iii) sell or encumber the HRA Property. It is the intention of this
provision that, during the term of this Agreement, the Developer shall have the
exclusive right to negotiate the acquisition of and to acquire the HRA Property.
4. Term.
This Agreement is effective from the date hereof through March 32, 2016, unless
extended with approval of the HRA's Board of Commissioners, provided, in the event
either party, after consultation with the other party, determines in good faith that the other
party is not diligently pursuing the Project or its obligations hereunder; or the Developer
determines, in good faith, that the Project is not feasible, such determining party may
terminate this Agreement upon thirty days written notice to the other. The HRA may also
terminate this Agreement for failure of the Developer to provide additional funds
pursuant to Section 5 below. The parties each waive any claim or cause of action that
they may have against the other party based upon the termination of this Agreement by
such other party. The parties may, by mutual written agreement, extend this Agreement
for such further periods as determined to be appropriate from time to time.
3
466878v1 JAE RC125-347
5. Administrative Costs of HRA. The Developer agrees and understands that it is
responsible for and will pay to the HRA $2,000 in HRA staff costs and all out-of-pocket
costs incurred by the HRA (including without limitation reasonable attorney and fiscal
consultant fees) in the negotiation and preparation of this Agreement and �other
documents and agreements in connection with the activities and the Project contemplated
hereunder (collectively, the "Administrative Costs"). Administrative Costs shall be
evidenced by invoices, statements or other reasonable written evidence of the costs
incurred by the HRA.
With the execution of this Agreement, the Developer will deliver $2,000 for HRA staff
costs and a deposit to the HRA in the amount of $5,000 (the "Deposit") to pay
Administrative Costs. At any time the Deposit drops below $1,000, the Developer shall
replenish the deposit to the full $5,000 within 30 days after receipt of written notice
thereof from the HRA. The HRA shall provide invoices to the Developer for all
payments deducted from the Deposit. At any time the Deposit is insufficient to pay
invoices related to the Project, the HRA will ask for additional Deposits from the
Developer. If the additional Deposit is not made within 30 days following the date of
such request, the HRA may elect to either suspend its performance under this Agreement
or terminate this Agreement. Such suspension or termination will be effective on the
date it is given in writing, or on such later date specified in the notification. Any
unexpended or unencumbered portion of the Deposit shall be returned to the Developer
upon the expiration or termination of this Agreement.
6. Termination of Agreement. This Agreement may be terminated upon five (5) days
written notice by a party to the other party if:
(a) in the respective sole discretion of any party, an impasse has been reached in
the negotiation or implementation of any material term or the completion or execution of
any material condition of this Agreement or the contract for private development; or
(b) a party fails to perform any of its obligations under this Agreement.
7. Exclusive Development Rights. During the term of this Agreement, the HRA agrees that
it will not negotiate or contract with any other party concerning the sale or development of the
Development Property. The Developer shall not assign or transfer its rights under this
Agreement in full or in part without the prior written consent of the HRA.
8. Miscellaneous.
(a) This Agreement constitutes the entire agreement between the parties relative to
the proposed Project. Unless specifically described herein, no obligation shall be
inferred or construed.
(b) Redevelopment of the HRA Property will be in accordance with a contract for
private development or other agreements which the parties shall, in good faith,
attempt to negotiate during the term of this Agreement.
4
466878v1 JAE RC125-347
(c) The Developer understands that further and separate action, for which no
obligation is created hereunder, will be required before the HRA or the Developer
is obligated to take various actions with respect to the Project. Those actions may
include, without limitation:
1) Public Hearing before the Board of the HRA prior to conveyance of HRA
Property;
2) A modification of the existing tax increment project plan, if necessary, and/or
the creation of a new housing tax increment district by the City Council and the
Board of the HRA;
3) Zoning and subdivision approvals to the extent any are required;
4) Construction of public improvements to serve the Project; and
5) Negotiation of and approval of a contract for private development
(d) The Developer further understands that many of the actions which the HRA or
the City may be called upon to take require the reasonable discretion and in some
instances the legislative judgment of the HRA or the City, such actions may be
made only following established procedures; and HRA may not, by agreement,
agree in advance to any specific decision in such matters.
(e) Information obtained from the Developer in connection with this analysis will be
subject to such confidentiality provisions as are required by the Developer and
permitted by law.
(� Notice or demand or other communication between or among the Parties shall be
sufficiently given if sent by certified or registered mail, postage prepaid, return
receipt requested or delivered personally:
Mesaba Capital Development, LLC
5201 Eden Avenue
Suite 250
Eden Prairie, MN 55436
Attn: Bo Nickoloff and Della Kolpin
Richfield Housing and Redevelopment Authority
6700 Portland Avenue South
Richfield, MN 55422
Attn: Steve Devich, Executive Director
5
466878v1 JAE RC125-347
(The remainder of this page is intentionally left blank.)
6
466878v1 JAE RC125-347
IN WITNESS WHEREOF, the parties have executed this Agreement effective the date and
year first above written.
HOUSING AND REDEVELOPMENT MESABA CAPITAL DEVELOPMENT,
AUTHORITY IN AND FOR THE CITY OF LLC, a Minnesota limited liability
RICHFIELD, MINNESOTA company
By: By�
Mary Supple
Its: Chair Its:
By:
Steven Devich
Its: Executive Director
7
466878v1 JAE RC125-347
EXHIBIT A
LEGAL DESCRIPTION AND MAP OF PROJECT AREA
[LEGAL DESCRIPTIONS TO BE REVISED]
21176th Street West
Lots 1, 2, 3, Block 4, R.C. Soens Addition, except the East 121.99 feet, according to the recorded
plat thereof on file or of record in the office of the Registrar of Titles, Hennepin County,
Minnesota.
7608 Pillsbury Avenue South
The East 121.99 feet of Lot 5 2, Block 4, R.C. Soens Addition, according to the recorded plat
thereof on file or of record in the office of the Registrar of Titles, Hennepin County, Minnesota.
7600 Pillsbury Avenue South
Lot 1, Block 4, R.C. Soens Addition, according to the recorded plat thereof on file or of record in
the office of the Registrar of Titles, Hennepin County, Minnesota.
7644 Pillsbury Avenue South
Lot 3, Block 4, R.C. Soens Addition, except the North 75 feet, according to the recorded plat
thereof on file or of record in the office of the Registrar of Titles, Hennepin County, Minnesota
and all of Lots 4 and 5, R.C. Soens Addition, according to the recorded plat thereof on file or of
record in the office of the Registrar of Titles, Hennepin County, Minnesota.
A-1
466878v1 JAE RC125-347
Second Draft
August 28, 2015
RIGHT OF ENTRY AGREEMENT
THIS RIGHT OF ENTRY AGREEMENT (the "Agreement") is made and entered into this
day of , 2015, by and between the Housing and Redevelopment Authority in and
for the City of Richfield, Minnesota, a Minnesota public body corporate and politic ("HRA"),the
City of Richfield, Minnesota, a home rule city and Minnesota public body corporate and politic
("City"), and Mesaba Capital Development, LLC, a Minnesota limited liability company
("Developer"). The HRA and the City are referred to collectively herein as "Owners."
RECITALS
First: The City is the fee simple owner of the real estate located at the address identified and
legally described on the attached Exhibit A ("City Property"). It is the intention of the City to
convey the City Property to the HRA.
Second: The HRA is the fee simple owner of the real estate located at the addresses
identified and legally described on the attached E�ibit B ("HRA Properties," and together with the
City Property,the"Properties"). It is the intention of the HRA to acquire the City Property from the
City.
Third: The Developer is investigating the possibility of purchasing the Properties for the
purpose of redevelopment.
Fourth: The Developer wishes to have its consultants conduct geotechnical testing, and
other related studies on the Properties in order to identify whether the Properties are suitable for the
Developer's intended uses. Developer has requested that the Owners grant the Developer, its
employees, agents and contractors, the right to enter the Properties to conduct said testing and
studies.
Fifth: The Developer also desires to secure the consent of the Owners to enter the Properties
for the purpose of conducting land surveys of the Properties. Developer has requested that Owners
grant their consent to the entry of these additional consultants onto the Properties to conduct their
studies.
Sixth: It is understood that in executing this agreement, the Owners will not be granting
(a) any permanent interest in the Properties to the Developer, or (b) exclusive use or possession of
the Properties to the Developer.
AGREEMENT
NOW, THEREFORE, in consideration of the premises and mutual obligations of the
parties contained herein, each of them does hereby represent, covenant and agree with the other
as follows:
1
467296v2 JAE RC125-347
1. Ri�ht of EntrX. Effective upon the date hereof, the Owners hereby grant to the
Developer, its agents, employees, contractors and invitees, and such other consultants as the
Developer may elect (collectively, "Consultants") the right to enter upon the Properties, for the
purpose of carrying out the activities described in the fourth and fifth recitals above (the"Permitted
Activities")relative to the Developer's possible purchase of the Properties.
2. Consideration. In consideration for such right of entry, Developer agrees to:
(a) Notify the Owners of the date and time that work by the Developer or its
Consultants on the Properties will commence under this Agreement, which notice
shall be at least three (3) business days prior to doing any work on the Properties in
order to permit the Owners' employees or consultants retained by the Owners to be
present during the time any work is being done by the Developer or its Consultants;
(b) Secure all appropriate governmental approvals and permits for any work that will
occur within public streets adjacent to the Properties;
(c) Provide a copy of all test results and reports prepared by the Developer's employees
or Consultants (except appraisal reports) evaluating the conditions present on the
Properties to the Owners as soon as reasonably possible following final completion
thereof.
(d) Dispose of all solid waste generated during the course of the Developer's sampling
activities and other work on the Properties in accordance with applicable federal,
state and local laws,rules and regulations.
(e) Do the work in the shortest period of time reasonably necessary to complete the
Permitted Activities under this Agreement as the Develqper, in its sole discretion,
shall elect to undertake;
(� Use the Properties only for the purposes described herein and not park or store any
equipment on the Properties, except during the limited periods of time when the
work on the Properties which is contemplated by this Agreement is actually in
progress;
(g) Do no unnecessary damage to the Properties and restore the Properties to
substantially the same condition as the condition in which they were found by the
Developer at the time of the Developer's or its Consultants' entry upon the
Properties pursuant to this Agreement;
(h) The Developer agrees to indemnify, save harmless, and defend the Owners and their
officers and employees, from and against any and all claims, actions, damages,
liability and expense in connection with personal injury and/or damage to the
Properties arising from or out of any occurrence in, upon or at the Properties caused
by the act or omission of the Developer or its Consultants in conducting the
Permitted Activities on the Properties, except (a) to the extent caused by the
2
467296v2 JAE RC125-347
negligence, gross negligence, willful misrepresentation or any willful or wanton
misconduct by the Owners, their officers, employees, agents or contractors; (b) to
the extent caused by a "Pre-Existing Condition" as defined in this paragraph 2; and
(c) caused by the acts or omissions of anyone not within the Developer's control,
including without limitation, the Owners and their officers, employees, agents or
contractors. "Pre-Existing Condition" shall mean any condition caused by the
existence of hazardous substances or materials in, on, or under the Properties,
including without limitation hazardous substances released or discharged into the
drainage systems, soils, groundwater, waters or atmosphere, which condition
existed as of the date of this Agreement and became known or was otherwise
disclosed or discovered by reason of the Developer's Consultants' entry onto the
Properties;
(i) The Developer shall not permit any mechanics', materialmens' or other liens to
stand against the Properties or any part thereof for work or materials furnished to
the Developer in connection with the right of entry granted pursuant to this
Agreement and the Developer agrees to indemnify, defend and hold harmless the
Owners from and against the same.
(j) The Developer shall ensure that its Consultants or their contractors or invitees which
enter the Properties pursuant to this Agreement shall carry insurance during the time
any work is done on the Properties in accordance with the following mirumum
requirements:
A. Workers' Compensation Insurance with limits as provided by statute,
with all necessary statutory elections to provide coverage for and/or claims made by
any person doing work on the Properties pursuant to this Agreement;
B. Employer's liability insurance (often included as coverage (b) in the
Workers' Compensation policy)with limits of at least$100,000;
C. Comprehensive Auto (and truck) Liability Insurance with minimum
combined single limits of$1 million per occurrence;
D. Comprehensive General Liability Insurance (including coverage for
contractual liability, products and completed operations liability, liability arising out
of explosion, or underground related incidents) with minimum combined single
limits of $1 million per occurrence. In addition, the Comprehensive General
Liability policy shall include the Owners and the Developer as additional insureds
with respect to work done on the Properties.
(k) If the Developer or its Consultants remove a sample or portion of the Properties for
investigation, monitoring or testing or obtains any data or issues any report, it must
give the Owners a copy of any data or report.
3. Expiration. The right of entry provided under this Agreement will automatically
3
467296v2 JAE RC125-347
expire on March 31, 2016.
4. Governin�aw. This Agreement shall be interpreted in accordance with the laws of
the state of Minnesota.
5. Notices and Demands. All notices, demands or other communications under this
Agreement shall be effective only if made in writing and shall be sufficiently given and deemed
given when delivered personally, sent by overnight or same day courier,transmitted by facsimile, or
mailed by certified mail, return receipt requested,postage prepaid,properly addressed as follows:
Mesaba Capital Development, LLC
5201 Eden Avenue
Suite 250
Eden Prairie, MN 55436
Attn: Bo Nickoloff and Della Kolpin
Richfield Housing and Redevelopment Authority
6700 Portland Avenue South
Richfieid, MN 55422
Attn: Steve Devich, Executive Director
City of Richfield
6700 Portland Avenue South
Richfield, MN 55422
Attn: Steve Devich, City Manager
Or to such other persons as the parties may from time to time designate in writing and
forward to the other persons entitled to receive notice as provided in this section.
6. Amendment. This Agreement may be amended by the parties hereto only by written
instrument executed with the same procedures and fortnality as were followed in the execution of
this Agreement.
4
467296v2 JAE RC125-347
IN WITNESS WHEREOF, the parties have executed this Agreement effective the date and
year first above written.
HOUSING AND REDEVELOPMENT MESABA CAPITAL DEVELOPMENT,
AUTHORITY IN AND FOR THE CITY OF LLC
RICHFIELD, MINNESOTA a Minnesota limited liability company
By: By:
Mary Supple
Its: Chair Its:
By:
Steven Devich
Its: Executive Director
CITY OF RICHFIELD, MINNESOTA
By:
Debbie Goettel
Its: Mayor
By:
Steven Devich
Its: City Manager
S-1
467296v2 JAE RC125-347
EXHIBIT A
CITY PROPERTY ADDRESS
7644 Pillsbury Avenue South
A-1
467296v2 JAE RC125-347
EXHIBIT B �
HRA PROPERTIES ADDRESSES
211 76th Street West
7608 Pillsbury Avenue South
7600 Pillsbury Avenue South
B-1
467296v2 JAE RC125-347
211 W. 76th Street and 7700 Pillsbury Avenue
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AGENDA ITEM#: 7
REPORT#: 31
STAFF REPORT
� � � �, � HOUSING AND REDEVELOPMENT
� i
AUTHORITY MEETING
SEPTEMBER 21, 2015
REPORT PREPARED BY: JOHN STARK, COMMUNITY DEVELOPMENT
DIIZECTOR
NAMF.,TITl,G
REPORT PRESENTER: JOHN STARK, COMMUNITY DEVELOPMENT
D�CTOR
NAMC•,TITLE
DEPARTMENT DIRECTOR REVIEW: � _ '''_
;: -
� J,:? SIG URG
yf� � � ., " i � `_. ';,
REVIEWED BY EXECUTIVE DIRECTOR: �
:
.�F__ �...�
ITEM FOR HRA CONSIDERATION:
Consideration of a proposal by JLG Architects to produce a Cedar Corridor Master Plan
U date.
I. RECOMMENDED ACTION:
By Motion: Accept a proposal from JLG Architects to produce a
Cedar Corridor Master Plan U date.
II. EXECUTIVE SUMMARY
Eleven years ago the architecture and urban planning firm of JLG Architects (JLG)
provided the City and Housing and Redevelopment Authority (HRA) with the Cedar
Corridor Master Plan (Plan). That Plan had been very useful in guiding land use
planning; development and transportation improvements along the Cedar Corridor.
Unfortunately, however, much of the desired development never occurred due to
the downturn in the economy.
With renewed interest in development along Richfield's eastern border, staff feels
that the existing Plan may be outdated and/or not reflective of recent and pending
development proposals. In an effort to provide cost savings and in recognition that
JLG's Master Plan for the area was so well received by the community and its
policy-makers, staff asked JLG to provide a proposal for drafting an updated Master
Plan.
092115 Cedar Plan Updatexxx
JLG has provided a proposal to produce the updated plan for $24,900. Based on �
staff's experience, this is a much lower price than it would cost to hire a new firm to
prepare a brand new plan.
III. BASIS OF RECOMMENDATION
A. BACKGROUND
• JLG drafted the Cedar Corridor Master Plan in 2004;
• After a lapse in development interest due to the economic downturn,
there is renewed interest in developing in the area;
• The previous Master Plan needs to be updated to reflect development
that has occurred, is pending and/or proposed and to meet modern
market demands.
B. POLICY
• On September 10, Council Memo No. 83 was provided to the Richfield
City Council advising them of staff's recommendation that the HRA
approve this item at tonight's meeting.
C. CRITICAL TIMING ISSUES
• One development proposal (Cedar Point II Housing) has been
accepted for the area and two more are due to be considered at a City
Council/HRA/Planning Commission Joint Work Session on September
22nd. Staff feels that it is important to update the area's Master Plan
in order to ensure consistency among these proposals.
D. FINANCIAL
• Staff feels that it is much more cost-effective to have JLG Architects
update their previous Master Plan than to hire another firm to create a
plan from scratch.
• The 2015/2016 HRA Budget identifies funds sufficient to pay the costs
of the Master Plan Update.
E. LEGAL
• N/A
IV. ALTERNATIVE RECONIMENDATION(S�
• Continue consideration of this item to allow staff and/or the consultant to
follow up on HRA Commissioners' questions or comments;
• Decline acceptance of JLG's proposal in order to seek formal proposals from
other firms.
V. ATTACHMENTS
• Cedar Corridor Master Plan Update proposal from JLG Architects.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• Michelle Allen, JLG Architects, can be available via telephone if there are any
questions or concerns she can address.
PROPOSAL
JLG -Cedar Avenue Corridor Plan Update
RE:Proposal
August 10,2015
Thank you for considering JLG Architects for this opportunity. Based on
the information provided,we have developed the following scope of To: cc:
work;once accepted,we will develop a formal AIA contract that aligns � ❑ John Stark
with this proposal. City of Richfie(d
� ❑ Karen Barton
City of Richfield
PROJECT DESCRIPTION ❑ � Nicole Washburn
Update the Cedar Avenue Corridor Plan,originally prepared by JLG 1�.G Architeces
Architectsin 2004. ❑ 0 lason Haagenson
1LG,4rchitects
PROJECT TEAM ❑ � Lonnie Laffen
1lG ArctiiCects
OWNER: City of Richfield
• John Stark,Director of Community Development
ARCHITECT: JLG Architects
• Michelle Mongeon Allen,AIA, LEED AP
• Lonnie Laffen,AIA,LEED AP
• Others,as determined
CONSULTANTS: None at this time
SCOPE OF SERVICE
• Secure,review and prepare background information
• Field study/visual assessment of planning area
• Half-day planning session with City staff
o Identify goals and desired outcome of planning process
o Consider existing conditions in terms of:
■ Land-use
■ Connections, barriers and gateways
■ Place-making and landmarks
■ Other,as recommended by City staff
o Identify obstacles and opportunities
o Design charrette to develop preliminary update concepts, identifying proposed:
■ Land-use
■ Connections, barriers and gateways
■ Piace-making and landmarks
■ Other,as recommended by City staff
• Prepare preliminary plan document for public meeting
• Present preliminary plan concept at public meeting
• Present preliminary plan concept at wark session with Planning Commission,City Council and HRA
• Update plan based on community,commission/council/HRA and staff feedback
• Present recommended plan at public meeting
• Present recommended plan to Planning Commission for approval
• Present recommended plan to City Council for approvai
• FINAL DELIVERABLE(pdf format)
o Executive summary
o Annotated site plan identifying:
■ Primary pedestrian and vehicular connections
■ Key landmarks and place-making features
JLG Architects � Michelle Mongeon Allen,AIA,LEED AP
801 Washington Avenue North Unit 120� Minneapolis,MN 55401 � p.612.746.4260�f.612.746.4754�mallen@jigarchitects.com
u:\].!i0xx-ciCy of rir,hfieid pl�nning update\1-3-project administration`1-owner�proposal 9'7081.2 finaf.ciocx k�age 1 af 2
■ Proposed land-use recommendations(though not including detailed land-use/zoning or form-
based code requirements or language)
OWNER RESPONSIBILITIES
Provide necessary information in a timely manner,including,but not limited to:
• Relevant background information including plans,studies,etc.
• Participation in planning session
• Feedback and direction
SCHEDULE
To be determined and as mutually agreed;generally,Fall of 2015
COMPENSATION
For the Scope of Service noted above,JLG requests compensation in the fixed amount of$24,900.00.
FtEIMBURSABLE EXPENSES
All project expenses are included in the fixed amount noted above.
Thank you for the opportunity to submit this proposal. Please do not hesitate to contact me with any questions or
concerns.
Sincerely,
Michelle Mongeon Allen,AIA, LEED AP
JLG Architects
Please sign and date be/ow to acknow/edge your acceptance of this proposal.
Client:John Stark,City of Richfield Date
Page 2 of 2
AGENDA ITEM#: 8
REPORT#: 32
STAFF REPORT
t , �
` ���� ` ' .�. � HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
` a SEPTEMBER 21, 2015
REPORT PREPARED BY: JULIE URBAN/KATE AITCHISON,HOUSING
SPECIALISTS
NAME,TlTLE
REPORT PRESENTER: ��N BARTON, ASSISTANT COMMUNITY
DEVELOPMENT DIlZECTOR
N.�rs,TiTCs
DEPARTMENT DIRECTOR REVIEW: � -
r�.
SIGNA' -
1 � ��
� -----i--- 1
REVIEWED BY EXECUTNE DIRECTOR: ��
�
ITEM FOR HRA CONSIDER.ATION:
Consideration of a Transformation Home Loan Application submitted by Commissioner
Debbie Goettel for 6525 James Avenue.
I. RECOMMENDED ACTION:
By motion:
1. Acknowledge the disclosure of an application for a Transformation
Home Loan for Commissioner Debbie Goettel at 6525 James
Avenue.
2. Approve the application for a Transformation Horr�e Loan for
Commissioner Debbie Goettel at 6525 James Avenue.
II. EXECUTIV� SUMMARY
The Transformation Home Loan program is a program offered by the Richfield
Housing and Redevelopment Authority (HRA) as a tool to encourage large-scale
remodeling projects for Richfield homes. The program is available to residents
completing a transformative renovation of their home, with a minimum investment of
$50,000.
HRA Commissioner and Mayor of the City, Debbie Goettel has recently applied for
a Transformation Loan. Following the guidance of the HRA's attorney,
Commissioner Goettel is required to disclose that she has applied for the loan
during a public meeting of the Richfield City Council and of the Richfield HRA. The
HRA must also formally approve the loan while Commissioner Goettel abstains her
vote.
Typically, the approval of Transformation Home Loans is done at the staff-level.
Staff has ensured that Commissioner Goettel meets all of the criteria required for
the program. Other elected and/or appointed officials have taken part in HRA
programs in the past without incident.
III. BASIS OF RECOMMENDATION
A. BACKGROUND
• The Transformation Home Loan has been available to Richfield
residents since 1993. Since that time, over 170 loans have been
issued, totaling $1.14 million. Those funds have gone on to leverage
nearly $8 million in remodeling within the community.
• Commissioner Goettel and her spouse have applied for a $25,000
Transformation Home Loan to assist with a home renovation that
includes:
o Update and expand kitchen.
o Update and expand master bedroom and bathroom.
o Mudroom addition.
o Front and rear porch/entryway additions.
• The project is estimated to cost $181,592. The Transformation Home
Loan accounts for 15% of total project cost, with a maximum loan of
$25,000.
B. PoLICY
• Under normal circumstances, a Transformation Home Loan is
approved at the staff-level, following the steps listed below:
o Complete application received and reviewed.
o Substandard property evaluation completed and reviewed.
o Review title work and draft loan documents.
o Conduct closing of the loan at City offices.
o Resident may begin project.
• Because of the Commissioner 's position with the City, the following
requirements are also necessary:
o The Commissioner must disclose that she has applied for the
loan during a public meeting of the City Council and a public
meeting of the HRA.
o The disclosure must be recorded in the official minutes of the
meetings.
o The Commissioner must abstain from voting on the application
or any other actions related to the loan.
o The HRA must approve the loan application by unanimous
vote.
C. CRITICAL TIMING ISSUES
• No work on the project may begin until the Commissioner has
disclosed her involvement with the program at both the City Council
and HRA meetings.
• The disclosure of the application to the City Council was conducted at
the September 8th meeting.
• Following the September 21 st meeting, work may begin on the
project.
D. FnvaNClal,
• Sufficient funding exists in the 2015 budget to fund the Transformation
Home Loan for Commissioner Goettel. �The loan is a 30-year,
deferred loan that accrues no interest. It is secured with a standard
residential mortgage and promissory note.
E. LEGAL
• Under the guidance of the HRA's attorney, the City and Commissioner
will be protected from any Conflict of Interest claims, if the following
statutes are adhered to:
o Minnesota Statutes, Section 471.88, subd. 19, which states: if
a housing and redevelopment authority administers a loan
program with state or federal funds, the authority may make a
loan from these funds to a public officer of the Housing and
Redevelopment Authority who applies for a loan if certain
conditions are met. The conditions include the following:
i. The Commissioner who applies for a loan must
disclose that he or she has applied for the loan
during a public meeting of the HRA;
ii. The Commissioner's disclosure must be recorded
in the official minutes of th'e meeting;
iii. The Commissioner must abstain from voting on
the application or any other actions related to the
loan; and
iv. The HRA must approve the loan application by
unanimous vote.
o Minnesota Statutes, Section 471.88, subd. 14, which states:
the Mayor, as a City Council member, could receive the loan
from the HRA if she discloses this during a public meeting of
the City Council and it is recorded in the official minutes of the
City Council.
IV. ALTERNATIVE RECOMMENDATION(S�
• Do not approve the Transformation Home Loan for 6525 James Avenue.
V. ATTACHMENTS
• None
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• Commissioner Debbie Goettel