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09-21-98 agenda• CITY OF RICHFIELD MONDAY, SEPTEMBER 21, 1998 HOUSING AND REDEVELOPMENT AUTHORITY MEETING RICHFIELD CITY HALL COUNCIL CHAMBERS 7 P.M. AGENDA APPROVAL OF MINUTES OF REGULAR HRA MEETING OF AUGUST 17, 1998 OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON THE AGENDA 2. CONSIDERATION OF AUTHORIZATION TO NEGOTIATE DEVELOPMENT AGREEMENT WITH RICHFIELD STATE AGENCY FOR CONCEPT ENTITLED URBAN VILLAGE, SOUTHEAST QUADRANT OF LYNDALE AVENUE AND 66TH STREET HRA LETTER NO. 57 3. CONSIDERATION OF RESOLUTION AUTHORIZING AND RATIFYING HRA'S SIGNATURES ON CROSS ACCESS EASEMENT AGREEMENT WITH CANDLEWOOD MINNEAPOLIS, MN, LLC FOR CANDLEWOOD HOTEL PROJECT HRA LETTER NO. 58 4. CONSIDERATION OF RESOLUTION APPROVING MODIFICATIONS TO RICHFIELD HOME REHABILITATION DEFERRED LOAN PROGRAM HRA LETTER NO. 59 5. EXECUTIVE DIRECTOR REPORT 6. CLAIMS AND PAYROLL ADJOURNMENT AUXILIARY AIDS FOR INDIVIDUALS WITH DISABILITIES ARE AVAILABLE UPON REQUEST. REQUESTS MUST BE MADE AT LEAST 96 HOURS IN ADVANCE TO THE ADMINISTRATIVE SERVICES DIRECTOR AT 861-9702. 0 • HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 59 Agenda September 21, 1998 Issue Statement: Adoption of a resolution approving modifications to the Richfield Home Rehabilitation Deferred Loan Program. Background: Richfield's Home Rehabilitation Deferred Loan Program (Deferred Loan Program) provides rehabilitation assistance to low income Richfield homeowners. Each year the HRA utilizes a portion of the CDBG funds allocated to the City from Hennepin County for rehabilitation loans. By assisting approximately 15-20 households each year (with approximately $270,000), the Deferred Loan Program plays an important role in achieving an HRA goal to preserve and maintain the City housing stock. Repairs usually include electrical and plumbing updating, furnace replacement, weatherization, roofing and windows and doors. The Deferred Loan Program is administered by HRA staff in accordance with the Richfield Home Rehabilitation Program Procedural Guide. The guide, based on program criteria established by Hennepin County and the HRA, last had revisions in June 1996. A component to the Deferred Loan Program is a flood grant. This component is used in extenuating circumstances, for improvements required as a result of localized flooding. It was initiated as a result of severe flooding that occurred after severe rains in August 1977. Five flood grants were provided at that time. Approximately six additional grants have been provided since that time. Eligibility for the grant is based on income, but the term is 7 years rather than 30 years, as required by the regular loan program. Grant guidelines have been recently reviewed and one modification has been identified. The maximum grant allowed has been $6,000. The maximum grant amount should be increased to $15,000 commensurate with the Deferred Loan limit. A modification to the guidelines now will allow efficient loan administration when needed. Recommended Motion: Adopt the resolution authorizing the identified modification to the Richfield Rehabilitation Procedural Guide. Basis of Recommendation: 1. The modifications will bring the Richfield Procedural Guide up to date. 2. The increased grant amount allows more options for replacing damaged appliances and finishes, and for correcting drainage problems. Alternative Recommendation: Do not authorize modifications to the Home Rehabilitation Deferred Loan Program. This would hinder program effectiveness. Discussion/Decision Mode: If approved, the recommended modification can become effective immediately. Respectf ly submitted, Jam fProsser Executive Director JDP:ds 0 0 0 HRA RESOLUTION NO. RESOLUTION AUTHORIZING APPROVAL OF MODIFICATIONS TO THE HOME REHABILITATION DEFERRED LOAN PROGRAM WHEREAS, the Richfield Housing and Redevelopment Authority provides a Rehabilitation Deferred Loan Program which utilizes Hennepin County provided CDBG funds to assist lower income homeowners with rehabilitating their homes; and WHEREAS, the program's Procedural Guide was approved by the HRA in 1996 and is modified periodically as program requirements and needs dictate; and WHEREAS, Richfield staff has identified modifications to update the program's Procedural Guide; and WHEREAS, the HRA has reviewed the modification. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota that the Richfield Rehabilitation Deferred Loan Program Procedural Guide will be modified to increase the maximum grant amount to $15,000 under the flood grant program component. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 21st day of September, 1998. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary 0 HOUSING AND REDEVELOPMENT AUTHORITY is HRA Letter No. 58 Agenda September 21, 1998 Issue Statement: Consideration of a resolution authorizing and ratifying the HRA's signatures on a Cross Access Easement Agreement with Candlewood Minneapolis, MN, LLC for the Candlewood Hotel Project. Background: On December 15, 1997, the HRA authorized the purchase of real property at 250 West 78th Street from Canadian Pacific (CP) Railroad. The purpose of the purchase was to undertake site assembly, in conjunction with the City, for hotel and restaurant redevelopment. On March 16, 1998, a public hearing was held on the sale of a portion of the HRA- owned CP Railroad property to Candlewood Hotel Company (Candlewood). The HRA authorized a resolution approving the sale, including authorization for the Chairperson and Executive Director to "execute any and all agreements required to effectuate" the sale resolution. Also, on March 16, 1998, a public hearing was held on the purchase of the remnant portion of land area from the City for future restaurant redevelopment. The HRA authorized a resolution approving the purchase, again including authorization for the Chairperson and Executive Director to "execute any and all agreements required to effectuate" the purchase resolution. During the processing of all of the land sale transactions between the CP Railroad and HRA, Candlewood and City, Candlewood and HRA, and City and HRA, it was understood by staff, and all legal counsels involved that a Cross Access Easement Agreement (Agreement) would be required to allow for access by Candlewood to 77th Street, address shared parking by users of the hotel and future restaurant, signage, and maintenance issues. Initially, Candlewood Hotel, the City, and HRA were to be part of this Agreement. However, since the City was selling its interest in the overall site area to the HRA for restaurant redevelopment, it was agreed that the City was no longer required to be party to the Agreement, only the HRA and Candlewood. The Agreement, dated June 22, 1998, was prepared by Candlewood's legal counsel, jointly modified and agreed to by staff and the HRA's legal counsel, and executed by the HRA's Executive Director and Chairperson and Candlewood. The Agreement was subsequently recorded against both the HRA/restaurant parcel and the Candlewood parcel at Hennepin County. Presently, Candlewood is undertaking construction financing. Candlewood's title company, First American Title Insurance Company, has certain title objections. They are not comfortable with the fact that the agreement was signed on the basis of authority given the Chair and Executive Director to "execute any and all agreements required to effectuate." They have requested specific approval of the Agreement. Per the HRA's legal counsel, adequate clarification for the title company would be for the HRA to authorize and ratify the HRA's execution of the Agreement by authorizing the attached resolution. Attached for review is the resolution and the Agreement. Recommended Motion: Approve the attached resolution which ratifies the HRA's execution of a Cross Access Easement Agreement with Candlewood Minneapolis, MN, LLC, dated June 22, 1998. Basis of Recommendation: 1. On December 15, 1997, the HRA authorized the purchase of real property at 250 West 78th Street from Canadian Pacific (CP) Railroad for a goal of redeveloping this parcel and the adjacent parcel for a hotel and restaurant project. 2. On March 16, 1998, a public hearing was held on the sale of a portion of the HRA- owned CP Railroad property to Candlewood Hotel Company (Candlewood). 3. On March 16, 1998, a public hearing was held on the purchase of the remnant portion of land area from the City for future restaurant redevelopment. 4. During normal processing of land acquisitions and dispositions associated with the hotel and future restaurant project, the need for a Cross Access and Easement Agreement arose. 5. HRA staff, legal counsel, and Candlewood's legal counsel agreed to the form and content of the Cross Access and Easement Agreement. The HRA's Executive Director and Chairperson executed the Agreement which was subsequently filed against the HRA/restaurant parcel and Candlewood parcel at the Hennepin County. Alternative Recommendation: 1. Do not ratify the action taken on the Cross Access Agreement. 2. Provide alternative solutions and/or direction to staff. Discussion/Decision Mode: The HRH's approval of the subject resolution would provide the necessary clarification for Candlewood Hotel's title company so that construction financing may proceed. Respectfully submitted, Ja Je Prosser 0 Executive Director JDP:ds HRA RESOLUTION NO. is RESOLUTION AUTHORIZING AND RATIFYING THE EXECUTION OF A CROSS-ACCESS EASEMENT AGREEMENT WITH CANDLEWOOD MINNEAPOLIS, MN, LLC WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield owns real estate legally described in Attachment A and located at approximately 300 - 250 West 78th Street, a portion of which the HRA acquired from the City of Richfield (the "HRA Property"); and WHEREAS, the Property is adjacent to and northerly of property owned by Candlewood Minneapolis, MN, LLC (the "Candlewood Property"); and WHEREAS, the development potential of the HRA Property and Candlewood Property would be enhanced by the existence of an agreement that would allow the owners and invitees of each parcel to utilize portions of the other parcel for parking, ingress, egress and signage; and WHEREAS, at the time the HRA acquired the HRA Property, all parties contemplated that such an agreement would be negotiated and recorded against the properties; and WHEREAS, the HRA chairperson and executive director have executed a Cross- Access Easement Agreement, dated June 22, 1998, that creates mutual easements for parking, ingress, egress, and signage, and that benefits and burdens both the HRA Property and the Candlewood Property, as contemplated by the parties. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota as follows: 1. The Cross-Access Easement Agreement between the HRA and Candlewood Minneapolis, MN, LLC, is hereby approved. 2. The actions of the staff, the chairperson and the executive director in negotiating, executing and recording the Cross-Access Easement Agreement are hereby ratified. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 21st day of September, 1998. Thomas E. Harms, Chairperson 40 ATTEST: Michael Sandahl, Secretary Attachment A Legal Description That part of the West 305.00 feet of the East 330.00 feet of the Southeast Quarter of the Southwest Quarter of Section 34, Township 28, Range 24, which lies northerly of a line described as beginning at a point in the west line of said East 330.00 feet distant 160.77 feet south of the northwest corner thereof, thence easterly, at a right angle distance of 136.00 feet; thence southerly at a right angle 42.80 feet; thence easterly at a right angle 65.00 feet; thence southerly at a right angle 18.00 feet; thence easterly at a right angle 104.00 feet to a point in the east line of said West 305.00 feet of the East 330.00 feet distant 222.86 feet south of the north line of said Southeast Quarter of the Southwest Quarter of the Southwest Quarter and said line there terminating, except the north 30.00 feet thereof, according to the United States Government survey thereof, Hennepin County, Minnesota. (HRA owned restaurant site) CROSS ACCESS EASEMENT AGREEMENT ORI PY?LY THIS CROSS ACCESS EASEMENT AGREEMENT ("Agreement"), is made and entered into as of this 22nd day of June, 1998, by and between the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, a public body corporate and politic under the laws of the state of Minnesota ("HRA"), and Candlewood Minneapolis, MN, LLC, a Delaware limited liability company ("Candlewood"). WITNES SETH: That; WHEREAS, HRA is the owner of the real property described in Exhibit A which is attached hereto and incorporated herein by this reference (the "HRA Parcel"); WHEREAS, Candlewood is the owner of the real property described in Exhibit B which is attached hereto and incorporated herein by this reference (the "Candlewood Parcel"); and WHEREAS, the parties hereto desire to enter into this Agreement in order to facilitate the use and enjoyment of the HRA Parcel and the Candlewood Parcel (sometimes together referred to herein as the "Parcels"). NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Definition of "Owner." For purposes ofthis Agreement, "Owner" shall be defined to mean one or more persons or entities holding a fee simple interest, or a vendee's interest, or any person or entity that is a lessee of a parcel under a typical sale-leaseback transaction, in either of the Parcels, or any portion thereof, subject to this Agreement; provided, however, that the "Owner" shall not include any holder of a lien secured by all or part of one or more of the Parcels, unless and until such lienholder acquires ownership in fee by foreclosure, deed in lieu of foreclosure, or otherwise. 2. Access Easements. The Owner of the HRA Parcel hereby grants and conveys to the Owner of the Candlewood Parcel a permanent non-exclusive easement for vehicular and pedestrian traffic over and across that portion of the HRA Parcel as may now or in the future exist for use as a driveway, parking area(s), and pedestrian walkways and/or sidewalks, as depicted in the cross- hatched area in Exhibit C, which is attached hereto and incorporated herein by this reference (the "HRA Easement Area"). The purpose of such access easement is to provide the Owner of the Candlewood Parcel and its officers, representatives, employees, agents, guests, invitees, customers, tenants, and successors (collectively "Permittees") ingress, egress, and parking over and along the • HRA Easement Area, and for the purpose of maintaining the HRA Easement Area in accordance with Section 5 of this Agreement. The Owner of the Candlewood Parcel hereby grants and conveys to the Owner of the HRA Parcel a permanent non-exclusive easement for vehicular and pedestrian traffic over and across that portion of the Candlewood Parcel as may now or in the future exist for use as a driveway, parking area(s), and pedestrian walkways and/or sidewalks, as depicted in the cross-hatched area in Exhibit D, which is attached hereto and incorporated herein by this reference, (the "Candlewood Easement Area"). The purpose of such access easement is to provide the Owner of the HRA Parcel and its Permittees, ingress, egress, and parking over and along the Candlewood Easement Area, and for the purpose of maintaining the Candlewood Easement Area in accordance with Section 5 of this Agreement. The parking easements granted herein shall be limited to the number of spaces necessary to ensure that the HRA Parcel and/or the Candlewood Parcel are in compliance with the parking requirements of the appropriate governmental entities for the intended use of such parcel; provided, however, that in no event shall the Owner of a parcel be entitled to use more than twenty-five (25) parking spaces located on the other Owner's parcel at any given time. 3. Signage Easements. The Owner of the HRA Parcel hereby grants and conveys to the Owner of the Candlewood Parcel an easement for signage purposes over and along that portion of • the HRA Parcel, as described in Exhibit E, which is attached hereto and incorporated herein by this reference (the "HRA Signage Easement Area"), for the purpose of erecting, repairing, maintaining, improving, changing, and removing an identification sign for the Candlewood Parcel and the HRA Parcel (the "HRA Sign"). Such HRA Signage Easement Area shall include a utility easement along and across the HRA Signage Easement Area for the purpose of servicing the HRA Sign. The ability of the Owner of the Candlewood Parcel to place signage on the HRA Parcel shall be limited to the use of one-half of the signage area of the HRA Sign. The Owner of the Candlewood Parcel hereby grants and conveys to the Owner of the HRA Parcel an easement for signage purposes over and along that portion of the Candlewood Parcel, as described in Exhibit F. which is attached hereto and incorporated herein by this reference (the "Candlewood Signage Easement Area"), for the purpose of erecting, repairing, maintaining, improving, changing, and removing an identification sign for the Candlewood Parcel and the HRA Parcel (the "Candlewood Sign"). Such Candlewood Signage Easement Area shall include a utility easement along and across the Candlewood Signage Easement Area for the purpose of servicing the Candlewood Sign. The ability of the Owner of the HRA Parcel to place signage on the Candlewood Parcel shall be limited to the use of one-half of the signage area of the Candlewood Sign. Nothing contained in this Agreement shall be deemed a gift or dedication of any portion of the easement areas to the general public, or for any public purpose. • -2- 4. Initial Construction. The cost of the construction of improvements within the HRA Easement Area, including but not limited to driveways, sidewalks, and parking areas shall be borne by the Owner of the HRA Parcel. The cost of the construction of improvements within the Candlewood Easement Area, including but not limited to driveways, sidewalks, and parking areas shall be borne by the Owner of the Candlewood Parcel. The construction of the HRA Sign and the Candlewood Sign (collectively, the "Signs") shall be completed by the Owner of the Candlewood Parcel and the actual out-of-pocket cost of the construction of such Signs shall be borne by the Owner of the Candlewood Parcel; provided, however, if the Owner of the HRA Parcel elects to use the Signs it shall reimburse the Owner of the Candlewood Parcel for one-half of the actual out-of-pocket costs of construction of such Signs (excluding the cost of any sign face advertising the Owner of the Candlewood Parcel). Notwithstanding anything in this Agreement to the contrary, the costs of constructing, maintaining, repairing and replacing each sign face constructed or to be constructed on the Signs shall be the sole responsibility and liability of the Owner of such sign face. 5. Maintenance and Repair. The parties agree that the HRA Easement Area, the Candlewood Easement Area, the HRA Signage Easement Area, and the Candlewood Signage Easement Area (collectively, the "Easement Areas") shall be kept in a first-class and serviceable condition, in accordance with generally accepted maintenance standards for first-class commercial real estate in the Twin Cities Metropolitan Area. Unless maintained or repaired at the cost of any s third party having a right to use any portion of the Easement Areas, or as otherwise provided in this Agreement, (i) the Owner of the HRA Parcel shall be responsible, at its expense, for all necessary maintenance, repair and replacement (including, without limitation, paving, repaving, sealcoating, striping ofparking stalls, snow and ice removal, and maintenance and repair of curbing , medians, and light poles) of the HRA Easement Area and HRA Signage Easement Area, and (ii) the Owner of the Candlewood Parcel shall be responsible at its expense, for all necessary maintenance, repair and replacement (including without limitation, paving, repaving, sealcoating, striping of parking stalls, snow and ice removal, and maintenance and repair of curbing, medians, and light poles) of the Candlewood Easement Area and Candlewood Signage Easement Area. Iir the event any Owner, or its Permittees performs excavations or otherwise disturbs any of the Easement Areas in the course of maintenance, repair, replacement or other activity or usage of the Easement Areas, the party shall promptly restore the damaged, excavated, or disturbed area to substantially the same condition as existed immediately prior to the damage, excavation, or disturbance. 6. Self-Help Remedies. If any Owner shall default with respect to any of its obligations set forth herein (including its maintenance obligations) and shall fail within thirty (30) days after receipt of written notice from the other Owner to cure such default, then the non-defaulting Owner shall have the right, at its election, but not the obligation, and in addition to such other rights and . remedies as may be available at law or in equity, to cure such default for the account of the defaulting -3- Owner, and shall be reimbursed by the defaulting Owner for the reasonable cost and expenses so incurred (including reasonable attorney's fees) within thirty (30) days of receipt of written demand for payment, together with reasonable documentation substantiating such costs and expenses. Any sums not reimbursed within such thirty (30) day period shall bear interest thereon at the rate oftwelve percent (12%) per annum, or the highest lawful rate, whichever is lower. The thirty (30) day cure period shall be extended in cases where the default cannot be cured within thirty (30) days but can be cured during a longer time, so long as the defaulting Owner is diligently pursuing such cure. In the event of an emergency, no prior notice shall be required to be given by the non-defaulting Owner prior to exercising its remedies hereunder so long as the non-defaulting Owner provides written notice of such emergency to the defaulting Owner promptly upon completion of such cure. Provided an Owner has been given written notice of the existence of a first mortgage lienholder on the other Owner's parcel, the non-defaulting Owner shall provide a copy of such notice of default to the defaulting Owner's first mortgage lienholder and any and all cure right vested in the Owner shall also be vested in such first mortgage lienholder. The non-defaulting Owner shall accept performance of such cure of default by the defaulting Owner's first mortgage lienholder. 7. Temporary Access Road. Notwithstanding anything in this Agreement to the contrary, the Owner of the Candlewood Parcel hereby agrees to construct a temporary access road over and along that portion of the HRA Easement Area shown on Exhibit G, which is attached hereto and incorporated herein by this reference (the "Temporary Access Road"). The Owner of the Candlewood Parcel shall be responsible for all costs associated with the initial construction and maintenance of the Temporary Access Road; provided, however, that the obligation of the Owner of the Candlewood Parcel to pay all of the maintenance costs associated with the Temporary Access Road terminates upon the sale of any portion of the HRA Parcel by HRA. Upon any such sale, the Owner of the HRA Parcel shall be responsible for its share of any and all maintenance costs as set forth in Section 5 of this Agreement. 8. Indemnification. Insurance, and Waiver of Subrogation. Each Owner, for itself, and for its respective heirs, administrators, legal representatives, successors, devisees, and assigns in title to the Quidlewood Parcel and the HRA Parcel, respectively, shall indemnify, hold harmless and defend the Owner (and any mortgagee now or hereafter of record) of the other Parcel, from and against any and all damages, liability, fees, penalties, and claims, including without limitation, those for personal injury, wrongful death or property damage arising out of or related to the use of any of the easement areas located on the indemnifying Owner's Parcel, except due to the negligence, willful misconduct or intentional wrong of the Owner to be indemnified. This indemnity shall be binding upon the Owners of the Parcels and their successors in interest only with respect to matters or events which occurred during the period the indemnifying party was the record title holder of the Candlewood Parcel or the HRA Parcel, as applicable. Each Owner shall keep in force a policy of public liability insurance for at least a combined single limit of Seven Hundred Fifty Thousand Dollars ($750,000) naming the other parry as an -4- is additional named insured, to cover all claims for death, personal injury, and property damage and the cost of defending the same arising out of the actions or omissions of the party carrying the policy, and its Permittees. Except to the extent caused by any willful misconduct or intentional wrong of the Owner to be released, each Owner hereby releases the other Owner from any liability for any loss or damage to its property or the improvements located on its Parcel to the extent the loss or damage is covered by fire and extended coverage insurance, regardless of the negligence on the part of any other Owner, it being the intent of the Owners to waive any right or claim which might give rise to a right of subrogation in any insurance carrier. 9. Interference with Easements. Neither of the parties shall erect or place or permit to be erected or placed any improvement, obstruction, or impediment which would interfere with the free and unrestricted use and enjoyment of the parking areas, driveways, signage areas or easements and rights granted pursuant to this Agreement. 10. Covenants Running with the Land. Each reference to HRA or Candlewood shall be deemed to include each of such entities' successors and assigns. The easements, rights, and obligations created hereby shall run with the land and benefit and bind the present and future Owners of the HRA Parcel and the Candlewood Parcel. • 11. Notices. All notices, demands, consents and requests which may be or are required to be given by either party to the other hereunder shall be either personally delivered (including overnight delivery service) or by facsimile transmission, and addressed as follows: To HRA: City of Richfield, Minnesota Housing Redevelopment Authority 6700 Portland Avenue Richfield, Minnesota 55423-2599 Phone: (612) 861-9760 Fax: (612) 861-8974 Attn: John Melin, Community Development Manager Bruce Palmborg, Community Development Director To Candlewood: Candlewood Minneapolis, MN, LLC 9342 E. Central Wichita, Kansas 67206 Phone: (316) 630-5500 Fax; (316) 630-5612 • Attn: Jeffrey F. Hitz -5- The foregoing address may be changed from time to time by written notice. Notices shall be deemed received upon personal delivery or facsimile confirmation thereof, or on the next business day if delivered by overnight delivery service. 12. Arbitration. All claims, demands, disputes, controversies, and differences that may arise between the parties regarding the terms of this Agreement shall be settled by arbitration in the following manner: 12.1. After a controversy has arisen between the parties, either party may, by written notice to the other, appoint an arbitrator who shall be a person experienced in the matter being submitted to arbitration. As an example, if the dispute involved is whether a party has defaulted in its maintenance obligations to be performed on the driveways, the arbitrator must be experienced in the maintenance, repair and replacement of drives and driveways. The other party shall, by written notice, within fifteen (15) days after receipt of such notice by the first party, appoint a second arbitrator who must also be experienced in the matter being submitted to arbitration. In default of the timely appointment of the second arbitrator, the first arbitrator shall be the sole arbitrator. 12.2. When two arbitrators have been appointed as hereinabove provided, they shall, if possible, agree on a third arbitrator and shall appoint him by written notice signed by both • of them and a copy mailed to each parry hereto within fifteen (15) days after such appointment. 12.3. In the event fifteen (15) days shall elapse after the appointment of the second arbitrator without notice of appointment of the third arbitrator as hereinabove provided, then, upon the written request of either party, or both, the third arbitrator shall be appointed by the Arbitration Committee of the American Arbitration Association. 12.4. On appointment of three arbitrators as hereinabove provided, such arbitrators shall undertake such fact-finding measures as they deem necessary to resolve a controversy that has arisen under this Agreement and shall render their award, including a provision for payment of costs and expenses of arbitration to be paid by one or both of the parties hereto, as the arbitrators deem just. 12.5. The award of the majority of the arbitrators shall be binding on the parties hereto although each party shall retain his right to appeal any questions of law arising at the hearing, and judgment may be entered thereon in any court having jurisdiction. 13. Choice of Law. This Agreement shall be construed and enforced in accordance with the laws of the State of Minnesota, without regard to choice of law provisions. • -6- • 14. Entire Agreement. This document contains the entire Agreement of the parties with respect to the subject matter hereof, and may not be amended except in a writing signed by each of the parties hereto. IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above written. Candlewood Minneapolis, MN, LLC by Candlewood Hotel Company, Inc. Its Manager By as A, Vi Cc Pol kjzai Of VILI.WO-Wr t1t Date: C. Housing Redevelopment Authority By Date: ?j ?'J ILI HouMf ment Authority By d, -, as C??ILL f /L ? z j Date: • n ACKNOWLEDGMENTS STATE OF KANSAS ) ) ss. COUNTY OF SEDGWICK ) This Cross Access Ease 1998, by Candlewood Hotel Company, Inc. MARGE RICHARDSON NOTARY PUBLIC STATE OF KANSA My AppL Exp. My Commission Expires: STATE OF MINNESOTA ) ss. COUNTY OF HENNEPIN ) was acknowledged before me on theme day of as of otary This Cross Access Ease ent Agreement, as acknowledged before me on the ? ay of 1-111 as flit? 4.; )A 1998, by d6 Hous' g Redevelopment uthority. ;;KATIA MEDVETSKI NOTARY PUBLIC - MINNESOTA My Commissn; 20res Jan. 31, 2000 -44044411 44%ril J 14otary Public My Commission Expires: [acknowledgments continued] • -8- • STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) This Cross Access Easement Agreement was acknowledged before me on the. 6 day of 1998, by L r,6 > zz? :z st?A, ? y yZ as f f the ousing Redevelopment Authority. KATIA MEDVETSKI Gfil?i?4+?' r`' z NOTARY PUBLIC -MINNESOTA ` My Commission Expires Jen- 31,2= ` Notary Public My Commission Expires: v 0 0 • 0 EXHIBIT A - HRA PARCEL That part of the West 305.00 feet of the East 330.00 feet of the Southeast Quarter of the Southwest Quarter of the Southwest Quarter of Section 34, Township 28, Range 24, which lies northerly of a line described as beginning at a point in the west line of said East 330.00 feet distant 160.77 feet south of the northwest comer thereof, thence easterly, at a right angle distance of 136.00 feet; thence southerly at a right angle 42.80 feet; thence easterly at a right angle 65.00 feet; thence southerly at a right angle 18.00 feet; thence easterly at a right angle 104.00 feet to a point in the east line of said West 305.00 feet of the East 330.00 feet distant 222.86 feet south of the north line of said Southeast Quarter of the Southwest Quarter of the Southwest Quarter and said line there terminating, except the north 30.00 feet thereof, according to the United States Government survey thereof, Hennepin County, Minnesota. 0 . EXHIBIT B - CANDLEWOOD PARCEL That part of the West 305.00 feet of the East 330.00 feet of the Southeast Quarter of the Southwest Quarter of the Southwest Quarter of Section 34, Township 28, Range 24, which lies southerly of a line described as beginning at a point in the west line of said East 330.00 feet distant 160.77 feet south of the northwest corner thereof, thence easterly, at a right angle a distance of 136.00 feet; thence southerly at a right angle 42.80 feet; thence easterly at a right angle 65.00 feet; thence southerly at a right angle 18.00 feet; thence easterly at a right angle 104.00 feet to a point in the east line of said West 305.00 feet of the East 330.00 feet distant 222.86 feet south of the north line of said Southeast Quarter of the Southwest Quarter of the Southwest Quarter and said line there terminating, except that part taken for Interstate Highway Number 494, according to the United States Government survey thereof, Hennepin County, Minnesota. 17J 0 EXHIBIT C HRA EASEMENT=AREA omr-,, P SCALE LAN INTERSTATE PWY 494 NO EXHIBIT D CANDLEWOOD EASEMENT AREA - - - - 7 tt -STRE'ET-HESTBOUND-------------------------I ------ ------- PROPOSED ISLAND CUT-, - - - - - - - - - - - - - - -77•Lh-STI«-ET- -E-AST-.,FUND -----------------------. - SHARED 11OTEV RESTAURANT ' MCMJMENT S" SEE DE TA1L S/L1.1 ID O 1 1 1 I I R ' f4 w • ,g 1 I 0 I -11 11 IT I I 1 M PAMCM SAW" 1 1 1 R[S dN11A/fT ( b 1 ' ' 1 1 ::O? ' x 1 I ' 1 I . ? 1 •:i :.. .. 1 1 Q 1 1 s :::::::. .......:.......:..:::•• - 1 1 : :'';;{:•' ' 1 1 I -D • :iii'. i?M3! N 1 I 1 1 1 I I J 1 1 1 1 1 I 1 ^ 1 1 1 1 I I 0• + I - .; .....••. '..::'r• •• ••..: :'::: ...... :V:.•.::•. :.•.:: 1• '•.rrrrr• •rrrr. :::::::: •::•: •:: •.rrrr::: rrrr:• .. 'l 1 1 1 1 I •:•M1hf!l?l1PI;IR•7??.?I,tiki;::• ° I 1 1 , ? 1 I 1 1 I I x -.7 I 1 1 l• ?wa?Tp+l?p~ 1 I - 1 1 . ;il}: I I 1? .. 1 1 -ee , W J 1 % ` '1 = MMO- S O OtMTAUlt* IT- I g 4 1 1 MID" r MOM,A.IT SJVJ M2.1 1 1! 1 1!±i± ;;7 . . -r r - _ ` . . vv 7 78th STREET N101A" Im. CAM, -PLAN INTERSTATE WHY 494 NO SCALE -EXHIBIT E HRA SIGNAGE EASEMENT AREA ------- 77th-STR-E-ET--WE-S=F5GUND---------- ------ ------- - rPPOPOSED ISLAND CUT-.. - ...... ------ -.-7-A --STREE"-E-AST- GU- N .7_.-.-....... ...... ...... - ....... -.-._ SNARED NOTEV P.ESTAURANT •••. YIONUI'itNT SIGN SEE DETAIL 5/L2.!;;• '• 2I'-O' •• p D 111111 1 ' 1 EASEMENT AREA, I I 7 , '9 I-F ' - t M PAMI s-AP.E• FJTM n - i 1 2L1 ? 1 , I j• 65'-II 5/5 ? . 108'-0' - _ I ' -J I 4'-0 12 '19'-O' 24'-0' 19'-O' '- Y l 22'-0' M'-C K-0' d I 1 1 1 1 1 I I I t 1 1 1 I ? I n ' I 1 1 t I H M . - PI I ? 4 6 1 4o ?Awwc •-I 1 ^ 1 ' I I w I 1 ' 1 1 I 1 IA?T ' ? i G4iassl?o I 1 1 1 p 24'-? ? l ' MYR![O WINK/ REf - lJ or." W PRL6MT HONIAIM7 MfN L7A 78th STREET N CaUSC,, LEPLAN INTERSTATE NWY 494 NO A q EXHIBIT F CANDLEW40D SIGNAGE EASEMENT AREA ------ - 77-th-STRE•ET-WEST-B0UND------------------------- ------------ PROPOSED ISLAND CUT-., - - - - 77th-STR-E-ET-E-A-5 T-B6UNE3------ ------ ------ -------------- --- SNARED NO RESTAURANT MONU1SWA SIGN SEE SEE D EST 3/L2.1 ? 44'-O• w ul 1 I 1 1 di I 1 L _ 1 a ?? ' ? 1 1 / N rMKNG rAC[O 1 I 1 1 Pvnmg b RbTAUR,YfT I _ 1 I 1 Z4 ; 1 1 1 1 1 . if 1 1 1 ?l < S n I ?• 33'-11 3/S ' 103'-0' 1 `" 1 J I 1 1 1 I a'-O I/S •M'-0' 24'-0' IW-O' '- MY-0' 22'-0' I 1 I 1 1 I .? 1 1 1 I 1 1 1 I I I n 1 1 1 1 1 1 I H M:-P4GP0.L I I 1 Is w 1 2 1 r 1 me r*m3ma rAIM b 1 "' 1 n i ! b I I 1 1 1 _ _ _ I 1 I 1j I 1 t?NO?sl1?o? 1 1 1 1 _ 1 10 24'-L" WMW wMEW MMTAURAMT- P?fsl ,&AT PIp1A/1T Sam .. .. i4.•i' .. 78th STREET EASEMENT AREA r?ol/TSaz ea. N C@l PLAN INTERSTATE NWY 414 NO SCALE EXHIBIT G TEMPORARY ACCESS ROAD ------- 77t?rsTRE-ET-HESTWUND------ ------ ------- - - - ,PPOPOSED ISLAND CUT-., ---------4-h h-7T RE-L`T--E- S T3: GU- ND ------------------------- SNARED H N E DETAIL R/WT ONUI'IFNT SIGN SEE E DETAIL S/1-3.1 n u I I 1 It %% I 1 . o n 9?Vt' 7 1 0,94-911 1 I 1 • I I N I 1 1 £ 1 N ?ARKNG lrACEe _ 1 1 RE! MAIAIfi I p L I I t 1 M , IT I 1 1 1 I 4'-0 I/e •h'-d 24'-d 1•I'-o' '- NY-d 27-d M'-d w-d 24'-d - e' 1 1 1 t / 1 I I J I 1 1 1 1 / I I = n 1 / I ( / 1 1 N N .._P{,?q?? 1/ ? s 6 I : 1 ue PON frACO a 1 "' 1 n 1 I ? w 1 1 I t I E 1/ ANO"s I I 1 / 1 / 1 10 . 24'-d s 1 SHAAW H=111-1 4 R WfT- '- ,A m m"T r L"IOIiM?fT wumai 04 IR(OMN VL2J 78th STREET RKWAM e0. 51TE PLAN INTERSTATE WHY 494 .. AL. HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 57 Agenda September 21, 1998 Issue Statement: Authorization to negotiate a development agreement with Richfield State Agency (RSA) for a concept entitled Urban Village, Southeast quadrant of Lyndale and 66th Street. Background: Richfield Lake master planning has been underway in 1997 and 1998. During the first quarter of 1998, the HRA considered a program to serve homeowners with a need or interest in selling and located on the block bordered by 66th/67th Streets and Pleasant/Grand Avenues adjacent to Richfield Bank and Trust. Rather than authorize an early acquisition program, staff was requested to evaluate the interest of developers in this area. Five development teams submitted proposals. They were presented to the HRA preliminary on April 20, 1998. The proposals ranged from low density townhomes, to midrise multi-unit housing, to a comprehensive redevelopment of the Southeast quadrant of 66th Street and Lyndale Avenue. The comprehensive proposal submitted by RSA included a mixture of new housing choices, retail, office, and public spaces. The RSA development team will be attending the September 21 HRA meeting. Jan Susee represents the developer, Richfield State Agency. David Graham, a principal of Elness, Swensen, Graham Architects developed the attached site plan and concept drawings. They are prepared to make a brief presentation. The proposal provides 78,000 sq. ft. of additional office/retail space, 210 housing units, and a 600 space parking ramp and includes the relocation of McDonalds to the corner of 67th and Lyndale. Townhome style apartments and assisted living housing are proposed for the n Pleasant/Grand block if included. A more detailed summary is attached. Tax increme financing is an integral part of the concept. Recommended Motion: Direct staff to negotiate a development agreement with Richfield State Agency for subsequent presentation to the HRA. t Basis of Recommendation: 1. The mixed use development concept is consistent with the Richfield Lake Master Plan. The proposal provides new housing choices; higher intensity development within a proposed future parkway; and a sense of place that frames the Southeast quadrant of 66th and Lyndale. 2. The Comprehensive Plan supports this type of commercial and mixed use development in this area. 3. Preliminary financial analysis by Ehlers and Associates indicates that the project is financially feasible. The current market value of $8 million for the proposed site would increase to $30 million upon project completion. A completed project would generate $900,000 annually in property taxes. Richfield State Agency has requested approximately $9.7 million in tax increment financing. Tax increment financing would support the parking ramp, land costs on the single family block, and the park-like spaces integral to the proposal. Sid Inman of Ehlers will be available at the HRA meeting to answer questions. 4. On two occasions, at Richfield Lake Planning open houses in May and August 1998, RSA has had an opportunity to display their concepts, answer questions and receive feedback. Feedback has been favorable. Some have characterized the concept as "exciting for Richfield". Some oppose the concept for the change it causes, the dislike of tax increment financing, and the removal of 14 single family homes and a chiropractic office. 5. Contact with the Pleasant/Grand block residents continues. To date, seven homeowners have indicated an interest in redevelopment. Appraisal information is being provided as requested by owners. The chiropractor is discussing relocation options with RSA. 6. RSA is being responsive to homeowners that want to or need to sell. RSA is working directly with interested owners based on appraisal reports provided to owners by the HRA. Negotiations include a payment in lieu of relocation. The 10 owner of 301 West 66th Street recently accepted the RSA offer. 7. Several elements are now being studied in greater detail: traffic, infrastructure, and consistency with the Richfield Lake draft master plan for example. Alternative Recommendation: 1. Direct staff to assemble additional information. 2. Do not proceed with development. 3. Modify the concept or select a different developer. Discussion/Decision Mode: A proposed schedule of key events is attached. A draft development agreement would be brought to the HRA in November. Respectfully submitted, 4 Jam . Prosser Executive Director 0 JDP:ds fL? 61, Community Development i 6700 Portland Avenue • Richfield, Minnesota 55423-2599 City Manager Mayor James D. Prosser Martin J. Kirsch September 11, 1998 Dear Pleasant/Grand Neighborhood: Council Susan Rosenberg Kristal Stokes Michael Sandahl Russ Susag I wanted to keep you updated with information as I receive it. 1. Appraisal reports for the seven that have requested an appraisal are underway. Four have just been completed and will be shared with the respective homeowners in a few days. The others may be about one week away. 2. Building evaluations have been completed on four homes with three more scheduled. 3. Richfield State Agency (RSA) continues to refine its development concept for the i property to the west. Approximately 80,000 sq. ft. of additional retail/office space and a relocated McDonalds are proposed. A five or six level parking ramp with parking for 500 to 600 cars is proposed. An assisted living apartment for seniors with approximately 70 units is proposed. If the Pleasant/Grand block is included, 130 townhome style apartments would be included in the proposal. The contact person for RSA is Jan Susee, 861-8531. 4. The owners at 301 West 66th Street have expressed a need to sell. The HRA has no program response. However, RSA has expressed an interest in working directly with the owners based on the appraisal report value the owners have received and an additional amount for relocation. RSA is contacting the owners and negotiating directly. 5. Those that haven't requested an appraisal may still find it beneficial to do so. My intent is to provide as much information as possible to help owners decide how much would be offered in a purchase. Please call Joe Wagner at 861-9763 if you would like an appraisal. 6. With more detailed compensation information provided, a survey will be sent to owners again to determine whether the neighborhood supports redevelopment or not or needs more information. Those that receive an appraisal or discuss compensation with RSA may be best prepared to respond to the survey. The present schedule is for the survey to go out by the end of September. The Urban Hometown Telephone (612) 861-9760 9 Fax (612) 861-8974 General City Matters: 861-9700 An Equal Opportunity Employer Pleasant/Grand Neighborhood September 11, 1998 Page 2 7. On Monday, September 21, at 7:00 P.M. in the Council Chambers, the HRA will hold its regular monthly meeting. On the agenda will be a presentation by RSA on their development concept. The information in this letter will be reported to the HRA. The HRA will be told that the neighborhood is still collecting information on compensation and that any actions taken to proceed with development will respect the neighborhood study area and process being followed. The HRA may be supportive of a development and request staff to prepare a development agreement. Any development discussions will not focus on the Pleasant/Grand neighborhood until responses are provided on information requested and the second survey has been provided. If at any time you have questions, please contact me at 861-9777. Sincerely, Bruce Nordquist Housing and Redevelopment Manager BN:js • • • 0 DRAFT URBAN VILLAGE SCHEDULE OF EVENTS As of September 21, 1998 September 21, 1998 HRA authorizes development agreement negotiations with RSA, Inc. October 27, 1998 Planning Commission makes finding concerning tax increment Program and Plan compliance with City's Comprehensive Plan. November 11, 1998 Date of Publication of hearing notice and map (at least 10 days but not more than 30 days prior to hearing). November 16, 1998 HRA reviews the Program and Plans. November 23,1998 City Council holds public hearing at 7:00 p.m. on the modification of the Richfield Redevelopment Project Area and the establishment of the Urban Village Tax Increment Financing District and considers passage of resolution approving the Program and Plans. November, 1998 Ehlers & Associates certifies Program and Plans with County and State. December 14, 1998 City Council first reading for the planned unit development (PUD) and rezoning of Pleasant/Grand block, & any street/right-of-way vacations, if appropriate. December 22, 1998 Planning Commission meeting for the planned unit development (PUD) plan amendment and rezoning; final development plan (FDP); and conditional use permit (CUP). January 11, 1999 City Council second reading and public hearings for the PUD plan, rezoning, FDP/CUP, any street/right-of-way vacations, and plat. February 20, 1999 Rezoning effective. 0 Richfield Urban Village An Integrated Development Proposal for the 6600 Block of Pleasant and Grand Avenues with the Richfield State Agency Site (at 66th Street and Lyndale Avenue) by Richfield State Agency Elness, Swenson, Graham, Architects Housing Element Features: 210 units total • 132 rental apartments configured in a townhome style at Grand/Pleasant Avenue with underground parking; a mix of 1, 2 and 3 bedroom units which accommodate a variety of one and two level living units: 36 - 1 bedroom, 70 - 2 bedroom, 26 - 3 bedroom. As market analysis continues by the development team, the mix of market rate rental apartments/townhomes and more affordable rental units or ownership units. • 78 unit senior assisted living and health services, courtyard style, 3 level building at 67th Street and Grand Avenue on Richfield State Agency property: • 54 - 1 bedroom units. • 24 - 2 bedroom units. Commercial Element Features: Approximately 78,000 sq. ft. of net rentable commercial space added and configured as 3 levels: • New street level restaurant and commercial services. Expanded to dical office on the second level. • Richfield bank office expansion on the third level. • A relocated McDonalds restaurant to the corner of Lyndale and 67th Street. • A parking ramp for approximately 600 cars to serve on-site and general public parking needs in the area. 0 Connecting Element Features: • A public walkway, corridor that connects the parking ramp to commercial uses and the intersection at 66th Street and Lyndale Avenue. The proposal also accommodates skyways across Lyndale Avenue and 66th Street. • Consideration for adding transit services; waiting and drop-off of transit users. • Emphasis on minimizing surface parking and maximizing public green space. • Emphasis on creating greenway pedestrian paths that are consistent with the Richfield Lake area concept plan. 0 1 • t 'tee ?J a C ? ^i n y t : cr y >-' y 2 y' n 'm C a q Lo t ?7 f I 4 I 0? ?I U U U U cd cZS N N W II 00 ?V .ti c W ?: If 49 M C tl? v 'A l? 1 r- L V LEI I ? v ? ti v ? ? o 4? ? U Oc U ?I N ? v \ U cd O v ?J V . F? N N Q> Q ? I N yN V ^v N h IV W v ? v ? o 4) i II II 1 \ U i U U L U Lr dl U C'. 'l Y w? } 9 v Ln a? v CLI .ti 4) Ln l n 0 U to rn 0 o? ti v v o? U U U QLI -? I N r ti N N ti 0 o?