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111615CompleteAgenda CITY OF RICHFIELD, MINNESOTA ..9--f_-,� ,: , j ; ; ; � MONDAY, NOVEMBER 16, 2015 � i � : l s /: �''-'i„'i"�X'"�,✓.s a,£"!A. `.. .��,K: RICHFIELD MUNICIPAL CENTER ��'�'_��-- �-� 6700 PORTLAND AVENUE REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING COUNCiL CHAMBERS 7:00 P.M. AGENDA Call to order 1. Oath of office to HRA Commissioner Debbie Goettel 2. Approval of the minutes of the (1) Special Concurrent HRA and City Council Worksession of October 13, 2015 and (2) Regular HRA Meeting of October 19, 2015. 3. HRA approval of the agenda 4. Consent Calendar contains several separate items which are acted upon by the HRA in one motion. Once the Consent Ca{endar 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 an item be removed from the Consent Calendar and placed on the regular agenda for HRA discussion and action. All items listed on the Consent Calendar are recommended for approval. A. Consideration of the approval of a resolution authorizing the purchase of real property located at 7033 GarField Avenue through the Richfield Rediscovered Program S.R. No. 35 B. Consideration of the approval of a Policy Statement establishing a policy for the Richfield HRA to withhold tax increment for outstanding tax petitions within established Tax Increment Financing Districts S.R. No. 36 C. Consideration of the approval of a one-year extension of the Consulting Agreement with the Center for Energy and Environment to provide professional services for the Residential Energy Program S.R. No: 37 D. Consideration of the approval of a resolution authorizing the acquisition of certain properties within the City of Richfield S.R. No. 38 5. Public hearing and consideration of a resolution authorizing the sale of 7029 Nicollet Avenue to Jan Beckius and Keith Holloman and a Contract for Private Development with Jan Beckius and Keith Holloman for the construction of a single family home uhder the Richfield Rediscovered Program Staff Report No. 39 6. Consideration of a Contract for Private Development between the Housing and Redevelopment Authority and Endres Custom Homes, Inc. for the redevelopment of 6713 Queen Avenue under the Richfield Rediscovered Program. Staff Report No. 40 7. HRA discussion items • Cancel/reschedule Monday, December 21, 2015 Regular HRA Meeting 8. Executive Director report 9. Claims and payroll Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9738. CITY COUNCIL MINUTES Richfield, Minnesota �'' ` ' ecial Concurrent Housin and l , N � � � , �- � Sp g , � � � �� evelo ment Authorit and Cit � . Red p Y Y � ' �, Council Worksession October 13, 2015 CALL TO ORDER The concurrent worksession was called to order by Mayor Goettel at 6:00 p.m. in the Bartholomew Room. Council Members Debbie Goettel, Mayor; Pat Elliott; Michael Howard; and Tom Fitzhenry. Present: Council Member Edwina Garcia. Absent: HRA Members Pat Elliott, Vice Chair; Debbie Goettel, David Gepner, and Doris Rubenstein. Present: HRA Member Mary Supple. Absent: Staff Present: Pam Dmytrenko, Acting City Manager/Executive Director; John Stark, Community Development Director; Jim Topitzhofer, Recreation Services Director; Karen Barton, Assistant Community Development Director; Matt Brillhart, Planning Technician; and Cheryl Krumholz, Executive Coordinator. Item #1 DISCUSSION REGARDING LAKES AT LYNDALE WAYFINDING SIGNAGE (COUNCIL MEMO NO. 88/HRA MEMO NO. 34) Matt Brillhart, Planning Technician, discussed the Connectivity Plan which provided guidance for improvements throughout the Lakes at Lyndale area centered around 66 Street and Lyndale Avenue. The HRA contracted with Signia Design to develop a wayfinding signage plan for the area, He also discussed the responses received via Richfield Connect: Frank Hickey, Signia Design, introduced three concepts for wayfinding signage. He requested feedback to narrow the selection. The City Council and HRA discussed maintenance, lighting, safety and the consideration of a universat design for continuity to be used for other parts of the City. The City Council and HRA consensus was more favorable towards Options 2 and 3 with the use of branding and continuity and addressing maintenance aspects. The concurrent worksession was adjourned by unanimous consent at 6:58 p.m. Special Worksession Minutes -2- October 13, 2015 Date Approved: November 16, 2015. . _ Mary B. Supple Chair Cheryl Krumholz Pam Dmytrenko Executive Coordinator Acting Executive Director HOUSING AND REDEVELOPMENT �l � AUTHORITY MEETING MINUTES � , N � � � � �� J Richfield, Minnesota �J�-w�' .� ' ' � Regular Meeting October 19, 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; Debbie Goettel; and Pat Elliott. Present: HRA Member poris Rubenstein. Absent: Staff Present: John Stark, Acting Executive Director; and Karen Barton, Assistant Community Development Director. Item #1 APPROVAL OF THE MINUTES OF THE (1) REGULAR HRA MEETING OF SEPTEMBER 21, 2015 AND (2) SPECIAL CITY COUNCIL, HRA AND PLANNFNG COMMISSION WORKSESSION OF SEPTEMBER 22, 2015 M/Gepner, S/Goette4 to approve the minutes. Motion carried 4-0. Item #2 HRA APPROVAL OF AGENDA M/Goettel, S/Elliott to approve the aaenda. Motion carried 4-0. Item #3 CONSIDERATION OF A RESOLUTION APPROVING A PRE-DEVELOPMENT AGREEMENT AND RIGHT-OF-ENTRY AGREEMENT BETWEEN THE RICHFIELD HRA AND CEDAR PT II, LLC FOR DEVELOPMENT OF THE CEDAR POINT HOUSING REDEVELOPMENT AREA STAFF REPORT NO. 33 Assistant Community Development Director Barton reviewed Staff Report No. 33. Developer/Architect Dean Davolis gave a brief update of the Cedar Point II Housing proposal. He also stated that a new aspect of the development was a desire to price/market some of the townhomes to first-time buyers. _2_ October 19,2015 HRA Meeting Commissioner Elliott asked about price points for those units and Mr. Davolis responded that it would likely be around $300,000 per unit. Commissioner Goettel asked about project financing. Mr.Davolis stated_that they were looking at a number of financing methods, but that they were not intending to rely on HUD financmg. Acting Executive Director Stark asked for clarification because he had understood previously that HUD was contemplated to be the primary funding source. Mr. Davolis stated that they would be investigating the use of HUD financing, but that their project was not reliant upon it. Commissioner Goettel also asked about a project timeline. Mr. Davolis stated that contact with residents would commence immediately and that the develop.ment team was planning on acquiring homes in spring/summer 2016 and beginning construction in the summer of 2016. � M/Goettel, S/Elliott that the followina resolution be approved: HRA RESOLUTION NO. 1211 RESOLUTION APPROVING AGREEMENTS WITH THE CITY OF_RICHFIELD AND CEDAR PT II, LLC Motion carried 4-0. This resolution appears as HRA Resolution No. 1211. Item #4 CONSIDERATION OF A RESOLUTION APPROVING THE PRELIMINARY DEVELOPMENT AGREEMENT AND RIGHT-OF-ENTRY AGREEMENT BETWEEN THE RICHFIELD HRA AND INLAND PARTNERS, LLG FOR DEVELOPMENT OF THE CEDAR POINT SOUTH AREA STAFF REPORT NO. 34 Assistant Community Development Director Barton reviewed Staff Report No. 34. Developer Kent Carlson hevaddton o fa berm to address pollicy ma�kertand ne ghboocation of the pool/clubhouse area and cancerns. Commissioner Goettel asked about the project timeline. ' Mr. Carlson responded that that they were holding a neighborhood open house on October 21, that they would be refining the design during the winter months and planned on beginning constructian in spring 2016. Chair Supple asked about property assembly. Mr: Carlson responded that they have three apartment buildings under purchase agreement, they are in discussions with one single-family homeowner and that the remainder of the property is City/HRA owned. Commissioner Goettel asked about affordable housing and financing. Mr. Carlson replied that 20% of the units would be affordable and that they were planning on using traditional financing. M/Elliott, S/Gepner that the followina resolution be approved: HRA Meeting -3- October 19,2015 HRA RESOLUTION NO. 1212 RESOLUTION APPROVING AGREEMENTS WITH THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD AND INLAND DEVELOPMENT PARTNERS, LLC Motion carried 4-0. This resolution appears as HRA Resolution No. 1212. Item #5 HRA DISCUSSION ITEMS Chair Supple asked staff for an update on the Concierge Apartments (formerly Crossroads at Penn). Acting Executive Director Stark responded that staff was working closely with the School District and with the property owners to ensure as smooth of a transition as possible for residents. T h e pro pert y owner has made a number of concessions, including allowing tenants to stay until May 31, 2016 (in order to avoid disruptions during the school year). Item #6 EXECUTIVE DIRECTOR REPORT None. Item #7 CLAIMS AND PAYROLL M/Goettel, S/Elliott that the followinq clairns and pavrolls be approved: U.S. BANK 10119115 Section 8 Checks: 127106-127185 157,537.47 HRA Checks: 32443-32472 $� 16,328.35 TOTAL 173,865.82 Motion carried 4-0. ADJOURNMENT The meeting was adjourned by unanimous consent at 7:38 p.m. Date Approved: November 16, 2015 Mary B. Supple HRA Chair John Stark John Stark Acting City Clerk Acting Executive Director AGENDA ITEM#: 4A REPORT#: 35 t -�`�'�� : ; STAFF REPORT � � � � ,�. �' � �, � � �� "��`�"��" �� HOUSING AND REDEVELOPMENT �--- � ��.�- .� ` � ._��r� -_ , `� AUTHORITY MEETING NOVEMBER 16, 2015 REPORT PREPARED BY: JULIE URBAN, HOUSING SPECIALIST NAML TITLE REPORT PRESENTER: ��N BARTON,ASSISTANT COMMUNITY DEVELOP , T DIRECTOR NaMC T�rcE DEPARTMENT DIIZECTOR REVIEW: � = SI ATURE REVIEWED BY EXECUTNE DIRECTOR: I ITEM FOR HRA CONSIDERATION: Consideration of a resolution authorizing the purchase of real property located at 7033 Garfield Avenue throu h the Richfield Rediscovered Pro ram. I. RECOMIVIENDED ACTION: By Motion: Approve the resolution authorizing the purchase of real property located at 7033 Garfield Avenue through the Richfield Rediscovered Pro ram. II. EXECUTIVE SUMMARY The owner of 7033 Garfield Avenue has expressed an interest in selling the property to the Housing and Redevelopment Authority (HRA). The 744 square-foot house and detached two-car garage was appraised on behalf of the HRA at $110,000. The house was evaluated and determined to meet the substandard criteria. The HRA would acquire the property for the appraised value of$110,000. Subsequently, the house and garage will be demolished and the 50-foot wide vacant lot marketed for sale through the Richfield Rediscovered Program. 111615 Acquisition 7033 Garfield.docx III. BASIS OF RECOMMENDATION A. BACKGROUND • The 744 square-foot house was built in 1936. It has two small bedrooms, one bathroom, and a two-car detached garage. • An independent evaluation was conducted and concluded that the house is structurally and functionally substandard, containing many code and structural deficiencies that would be difficult to correct. B. PoLICY • The 2008-2018 Richfield Comprehensive Plan states as policy: o Encourage the creation of"move-up" housing through new construction and home remodeling. o Promote the development of a balanced housing stock that is available to a range of income levels. • Through the City's Richfield Rediscovered Program, the HRA purchases and removes substandard and functionally obsolete housing and replaces it with newer, higher valued homes. C. CRITICAL TIMING ISSUES • A Purchase Agreement was submitted to the property owner contingent upon HRA approval. • Staff would like to complete this purchase by the end of 2015. D. FINANCIAL • The property was appraised at $110,000. • Funding is available for this acquisition in the HRA's 2015 Budget and for demolition in the HRA's 2016 Budget under the Richfield Rediscovered Program. E. LEGAL • Legal counsel has reviewed the Purchase Agreement. IV. ALTERNATNE RECOMMENDATION(S� • Do not authorize the purchase of the property. V. ATTACHMENTS • Resolution • Purchase Agreement • Photo of existing structure VI. PRINCIl'AL PARTIES EXPECTED AT MEETING • None HRA RESOLUTION NO. RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 7033 GARFIELD AVENUE WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota ("the HRA") desires to purchase certain real property pursuant to and in furtherance of the Richfield Rediscovered Program, said property being described as: 7033 Garfield Avenue Legal: Lot 13, Block 4, Augsburg Park" according to plat of record, Hennepin County, Minnesota. WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to acquire real property within its area of operation; and WHEREAS, Housing and Redevelopment Fund money is available for acquisition purposes. NOW THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority in and for the City of Richfield: 1. The purchase price for the property is approved at $110,000 plus closing costs, not to exceed $115,000. 2. The Chairperson and Executive Director are authorized to execute a Purchase Agreement and to take other actions necessary to purchase the property for the amount set forth in this Resolution. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota on this 16th day of November, 2015. Mary B. Supple, Chair ATTEST: Doris Rubenstein, Secretary PURCHASE AGREEMENT THIS PURCHASE AGREEMENT (the "Agreement") is made as of this day af , 2015, by and between Robert M. Miller, a single individual ("Seller") and 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 ("Buyer"}. RECITALS Seller is the owner of property located at 7033 Garfield Avenue South, Richfield, Minnesota, which is legally described on the attached Exhibit A ("Property"). The Property includes includes all plants, shrubs and trees, storm windows and/or inserts, storm doors, screens, awnings, window shades, blinds, curtain-traverse-drapery rods, attached lighting fixtures with bulbs, plumbing fixtures, water heater, heating system, humidifier, central air conditioning, electronic air filter, automatic garage door opener with controls, water softener, cable television outlets and cabling, and built-ins, including dishwasher, garbage disposal, trash compactor, oven(s), cook top stove, microwave oven, hood-fan, intercom and installed carpeting located on the premises which are the property of Seller. The property also includes the following personal property: NONE. Seller is responsible for removal of all personal propei�ty and hazardous materials. Seller may remove the following items, provided Seller does not cause any unnecessary damage to the Property: ��thr�� 5:� l� � '1_� �`�r � Si`n�� ' I�� P�� ,,.� c�,i�y�tT �'1'�t��n t i v r " � (.k)� • l-r�-r-1/1 �N�-�� f,4 L�:J� It is the intention of Seller and Buyer that Seller will enter into a lease with Buyer to occupy the Property for a short term basis. When Seller moves out of the Pr�operty, the Seller is i•esponsible for removal of all personal property. AGREEMENT 1. Offer/Acceptance for Sale of Property. The Seller agrees to sell to Buyer the Property and Buyer agrees to purchase the same, according to the teims of this Agreement. 2. Purchase Price for Property and Terms. A. PURCHASE PRICE: The total pi.u•chase price for the Property is one-hundred ten thousand and 00/I OOths Dollars ($I 10,000) (the "Purchase Price"). B. TERMS: (1): EARNEST MONEY. The sum of zero Dollars ($0.00) (the "Eat•nest Money") shall be paid by Buyer to Seller. 1 469472v3 RC125-349 (2): I3ALANCE DUL SELLER. Buyer agrees to pay b�= check or• electronic � transfer of fiinds on the date of closing on the Prapei•ty (the "Closing llate") any remainin�; balance of the Pur•chase Pl•ice due to Seller according to the tet•ms of this A�reement. (3): DEEll/MARKETA�3I_,1; "I'ITLE. Subject to pet•fo1•mance by Buyer, Seller agrees to execute and deliver a Warrant�y Deed or Personal Repr�sentative's Deed conveying marlcetable title to the Property to Buyer, subjeci only to the following eaceptions: a. Building and zoning laws, ordinances, state and federal regulations. b. Reservation of minerals or mineral rights to tlie 5tate of Minnesota, if any. c. Public utility and drainage, easements of record WI11C�1 will not interfere with Buyer's intended use of the Property. (4): DOCUMENTS TO BE DELIVERED AT CLOSING BY SELLER. In addition to the Warranty Deed required at pat•a�raph 2B(3) above, Seller shall deliver to Buyer: a. Standard form Affdavit of Seller. b. A "bring-down" certificate, certifying tllat all of the warranties rnade by Seller in this Agreement remain true as of the Closing Date. c. Certificate that Seller is not a foreign national. d. If an environmental investigation by or on behalf of Buyer discloses the existence of petroleum product or oiher pollutaut, contaminant or� other hazardous substance on the Property, either (i) a clasui•e letter fi�om the Minnesota Pollution C011tI•ol Agency (MPCA) or other appropriate regulatory authority that remediation has been completed to the satisfaction of tlie MPCA or other authority; or (ii) Agreement for remediatioi�/indemnification and security as Buyer may r•equire. e. Well disclosure certification, if required, or, if there is no well on the Property, the W�rranty Deed or Persanal Representative's Deed given pursuant to paragraph ZB(3) above must include the following statement: "The Seller cel-tifes that Seller does not lcnow of any weIls on the described real pr•operty." If Seller is unaware of the location of a ��ell aiid ther�; is a building 2 469472v3 RC125-3�19 pei•mit issued for the Pi•aperty priot• to installation of a City v��atet• systenl, Buyer agrees to have a licensed «�ell contractor eaamine the Pl•operty for purposes of locating a well aiid assumes responsibility foi•sealing the well at Buyer's e�pense. f. An,y othet� doculnents reasonably 1•ec�uired by Buyel•'s title insurance company ot• attorney to evidence that title to the I'roperty is mai•ketable and that Seller has complied «�ith the terms of this Agreement. 3. Contingencies. I�L�yer's obligation to buy is contingent upon the following: a. I3u}�er's determinatiori of marlcetable title pursuant to paragrapli 4 of this Agreement; b. Buyer's determination, in its sole discretion, that the results of any enviroumental investigation of the Property conducted pursua�it to this Agreement are satisfactory to Buyer; c. The parties ac,knowledge that the Richfield zoning ordinance requires that lots in the R district meet ce��tain minimum lot width, and area requirements. If these standards are not met, one or more variances will be necessary prior to conshuction of a new dwelling on the property. If the City of Richfield does not issue all variances ne�essary ta make the property a buildable lot within the meaning of the zoning ordinance, Bu��er at its sole disc;retion i�ay cancel this Agreement; and d. Approval of this A�;reement by Buyer's �3oard. Buyer shall have until the Closing Date to remove the foregoing contingencies. `I'ile contingencies at a., b., and c. are solely for the beneFt of Buyer and may be waived by Buyer. The contingency at d. may not be waived by either party. If Buyer or its attorney gives written notice to Seller that the contingencies at a., b., c., and d. are duly satisfied or waivcd, Buyer and Seller shall proceed t� close the transaction as contemplated herein. If one or mor� of Buyer's ol• Seller's contingencies is not satisfed, or is not satisfied on time, and is not waived, this Agreement shall thereupon be void at the written optian of Buyer and Seller shall return the rarnest Money, if any, to Buyer, and Buyer and Seller shall execute and deliver to each other a termination of this Agreement. As a contitlgent agreement, the tei7nination of this l�greement is not required pursuant to Minnesota Statules, Section SS9.21, et. seq. 4. 'I'itle Examination/Curing Title Defects. As soon as reasonably possible after executioz� of this Agreeinent by both parties, 3 , 4G9472r3 KC(75-34q (a) Seller shall sui•rendei• aiiy abstract of title and a copy o1' any ov��ner's title insurance poIicy for the property, if in Seller's possession OT' C011tl'Ol, to I3uyer or to I3uyer's designated title service provider; and (b) Buyer shall obtain the titl�e e��idence determined necessary or desirable b�� Buycr•. 'Th� I3uyer shal] have 20 days fi•om the date it receives such title evidence to raise any objections to title it may have. Object:ions not made witliin such time will be deemed waived. The Sellei•shall have 90 days fi•om the date of such objection to affect a cure;p�•ovided, however, that Sellet• shall have no obligation to cure any ovjections, and may inforni Buyer of such. The Buyer may then elect to close notwithstandiiig the uncur�ed objections or declare this Agreement null and void, and the parties «�ill thereby be released from an3� furthei•obligation hereunder. 5. Environmental Investigation. The Seller warrants tliat the Property has not be�n used for production, storage, deposit or disposal of any toxic or halardous waste or substance, petroleum product or asbestos product durin� the period of time Seller has owned the Property. The Seller further warrants that Seller has no knowledge or information of any fact which would indicate the Prope�•ty was used for production, storage, deposit or disposal of any toxic or hazardous waste or substance, petroleum product or asbestos product pt•ior to the date Seller pur•chased the Property. Notwithstanding the above, Seller's warranty regarding petroleum products does not preclude the presence of heating oil or othei• similar products used as a heating fuel for the dwelling but Seller does warrant that if there was a fuel tank on the Property used for the storage of heating oil or other similar product, Seller has no knowledge of any leak in the tank or contamination caused thei•eby. 6. Real Estate Taxes and Special Assessments. Real estate taxes payable in the year of closing will be pro-rated beri�een Buyer and SeIlsr to the Closing Date. Seller shall pay all r•eal estate taxes payable in previous yeais, the entire unpaid balance of special assessments, and all installments of special assessments levied and pendin�, including special assessments installments payable after the year of closing. Seller also agrees to pay all assessments related to service charges fiunish�d to the Property prior to the Closing Date (e.g., delinquent water or sewei• bills, removed or• diseased trees), including those charges levied, pending, or cei�tified to taxes payable in the year of closing. If closing occurs prior to the date the amount of real estate t�es due in the year of closing at•e available fi•om Hennepin County, the cuirent year's taxes will be pro-rated based on the amount due in the prior year. 7. Closi�ig Date. "The Closing Date will be on or before December 31, 2015. Delivery of all papeis and the closing shall be made at the offices of Buyer, 6700 Portland Aveuue South, Richfield, Mimiesota 55423, or at such other location as is mutually agreed upon by the parties. All deIiveries and notices to Buyer shall be made to the above address and niarked to the attention of Ilousin� Specialist. 8. Possession/Iltilities/Removal of Propert��/Escrow. (a) Yossessioil, On the date of'Closing, Buyer wil l become the owiler of the Property and Seller shall enter into a lease agreement with Buyei• in order to b�come a tenant on the 464�172��3 RC125-3�}9 4 Propet�ty. (b) iJtilities. City water and sev��er chai•ges, elech�icity and natural gas charges, fuel oil and liqlaid petroleum g�as shall be pro-t•ated between the parties as of the Closing Date. Seller shall arrange fot° final readings as of the Closi��g Date. 9. Sellet° Wai°ranties. (a) Sewer and Water. Seller warrants that the Praperty is connected to Ciiy se��er and City ��Tater. (b) Mechanics` Liens. Seller«�arrants that,prior to tl�e closing, Seller shall pay in full all amounts due for laboi•, materials, niachinery, fixtul•es oi• tools furnished within the 120 cia��s immediately preceding the closing in connection with constiuction, alteration or t•epair of any sttucture upon or impro��ement to the Property. (c) Notices. Seller ��vari•ants that it has not received any notice fi•om ans� �overnrnent:al authority as to violation of any law, ordinance or regulation in connection with the Proper•ty. (d) Broker Commission. Each party i•epresents to the other that it lias not utilized the seivices of any real estate bi•oker or agenf in connection with this Agreement or the transaction contemplated by this Agreeinent. F,ach party agrees to indemnify, defend, and hoId harmless the other party against aiici in respect of any such obligation and liability based in atiy way upon agreements, arrangements, or understandings made or claimed to have been niade by the patrty with an3T third person. (e) Structures. The Seller warrants that the buildin�s, if any, are entirely within the " boundary lines of the Property. The parties acknowledge that the Prope�°ty is being sold in "as is" condition relating to the structural, operati�nal, and mechanical systems. 10. Closing Costs/Recording Fees/De�d Taxo 'I'he F3uyer will pay: (a)the closing fees charged by the title insurance or other ciosing agent, if any, utilized to close the transaction contemplated by this �greement; (b) fees for title evidetice obtained by Buyei; and (c) the recoi•ding fee for the deed transferring title to Buyer. Seller��vill pay all other fees nonnally paid b�� sellers, including (a) any transfer taxes, recording fees and Well Disclosure fees required to enable Buyer to recor•d its deed fi•om Seller under this Agreement, and (b) fees and charges related to the filing af any instrumeiit required to make title inarketable. Each party shall ��ay its own attoi°ney fees. 11. Inspections. From the date of this Agreement to the Closing Date, Buyer, its employees aild agents, shall be entitled to enter upon the Pr�operty to conduct such sui•veying, inspections, investigations, soil borings and t.esting, and dr•illing, monitorii��, sampling and testing of g;roundwater monitoring«�ells, as Buyer shall elect; pro`�ided, that Seller is given at least 24 hour•s' tiotice. 5 469472v3 RC 125-349 12. Risk of I.oss. lt there is any loss or dama�;e to the Proper•ty bet��een the date hei•eof and thc, Closing Date, for any reason ineluding fire, V�t1C�1I1S111, flood, eartlic�uake or act of God, the risk of loss shall be on Seller. If the Propei�ty is destroyed or substantially damaged before the clasing date, tliis Agreement shall becon�e null and void, at Buyer's option. At t11e i•equest of I3uyet•, Se)ler agi•ees to sigv a cancellation of Agt�eeinent. 13. Default/Remedies. If I�uyer defaults in any of'the covenants herein, Seller may terminate this Agreement, and on such termination all paynlents macle hereunder shall be retained by Seller as liquidated damages, time being of the essence. This pl•ovision shall not depri��e either party of the right to enforce specific performance of this A�;reement, provided tliis A�reement has not terniinated and action to enforce specific performaiice is commenced wTithin six months after sucli right of action arises. In the event Buyer defaults in its performance of the tet•ms of this Agi•eenlent and Notice of Cancellation is ser�7ed upon Buyer pursuant to Minn. Stat. Sectian 559.21, the tertnination period shall be thirty (30) da��s as permitted by Mimi. Stat., Section 559.21, Subd. 4. 14. Notice. Any notice, demand, request or other communication which may or shall be given or sei°ved by the parties, shall be deemed to have been given or seivecl on the date the same is personally serv�d upon one of the following indicated recipients for notices or is deposited in the United States Mail, re�istered or certified, return receipt requested, postage prepaid and addressed as follows: SELLER: Robert M. Miller 7033 Garfield Avenue South Richfield, MN 55423 BUYER: Housing and Redevelopment Authority of the City of Richfield Attn: Housing Specialist 6700 Portland Avenue South Richfield, MN 55423 AGLNT: I�ennedy & Uraven, Chartered ATTN: Julie �ddington and Catherine B. Rocklitz 470 U.S. Iianlc Plaza 200 South Sixth Street Minneapolis,MN 55402 1 S. No Relocation Bene�ts; Indemnificatione Seller acknowledges: (a) that Seller is an owner-occupant of the Property; (b) that Seller initiated negotiations with F3uyer for the sale of the Property to Buyer, �rior to Buyer indicati�ig any intent to acquire the Property; and (c) that I3uyer has informed Seller i�� vritin� that Buyei• wiil not acquire the property if negotiations fail to result in an amicable agrecment. Seller voluntarily waives an3� and all ri�llts to relocation benefits, assistance and services for• which �he may be eligible. At Closing, Buyer agrees to execute a v��aiver in the form af the attached Txhibit A for all i°elocation benefits, assistance and seivices 1'or which he might atherwise be eligible. The provisions of this paragt•aph shall survive 6 4(,9�172v3 RC125-349 Closing of the transaction contenlplated by this PL►i•chase Ag�•eement. Seller represents that Sellef•fully understands Seller•'s i•ights regarding state and federal la�Ws ancl r�;�;ulations i•elating to relocation assista�lce. Seller and I3uyer a�ree that the purchase pl•ice for• the I'roperty stateci in Sectioil 2A of this Agreement is inclusive of any aild all relocation assis�an�;e or benefits to «�hich �eller or any other party is found or determined to be entitled. Seller agrees to defend and indemnify Buyer from any claims for relocation assistance or benefits including but not limited to legal fees, costs and expenses of relocation benefits and of providing relocation assistance. `I'his paragraph shall sur��ive closing. Seller and Buyer agree that the obligations of this Section are material terms of this Agr•eement and that if any pai•t of this Section is determined by a coui�t of'competent jurisdiction to be illegal or unenfor•ceable, this Agreement shall be tet•minaied and of no legal force or affect. Seller will, �t }3u3�er's op�ion, return the purcliase price to Bu}�er and Buyer will retur�l the Property to Seller. Seller agrees to accept return of the Property in whatever condition it exists at the time it is i•eturned, including but not limited to, a condition in which the structures and improvetnents on the Property have been demolished or partially demolished. 16. Tenants. The Seller v��ai•rants that thet•e are no tenants on the Property with a lawfu] leasehold interest. In the event any tenant comes forward and claims an interest in the Propel•ty at the time of or following the purchase, the Seller agrees to fully indemuify the Buyer for any and all costs assoeiated with terminating such tenancy and for any and all relocation assistance and benefits that may be due to such tenant together• with attorneys' fees that the Buyer would have to incur in connection with legal action required to resolve any relocation assistance or benefts dispute with such tenant. Foi• Sections 1 S and 16 of this Purchase Agreement, "relocation assistaYice and benefits" shall have the meaning ascribed to them by the Uniform Relocation Assistance and Real Property Acquisition F'olicies Act, 42 i1.S.C. Sections 4601�4655 (the federal URA) and the r•egulations implementin� the federal URA, 49 C.F.R. Sections 2�.1-24.603. 17. Seller's Lease of I'roperty. Seller and F3uyer have agreed that Seller will remain on the Property as a Tenant of the Property fot• up to 12 monihs at a monthly rental rate of$500. Orr or prior to the Closing Date, the Seller shall enter into a lease in substantially the form set forth in the attached EXHIBIT C (the "I,ease"). The Buyer shall retain $500 frorn the Purchase Price as a security deposit under the Lease. If the Sellei• has not vacated the pr�perty within the initial 12 month term of the Lease, tlie inoirthly rental rate will increase to a mai•ket rate rent, which at this time is estimated to be $800. 18. �;utire Agreement. This Agreement, Eahibits, and other amendments signed by the parties, shall constitute the entire Agreement between Seller and Buyer and supei°sedes any other written or oral agreements between the parties relating to the Property. This Agreement can be modified only in a writin� properly signed on behalf of Seller and]3uyer. 7 ah9472��3 RC'(25-349 19. Survival. Notwithstauding an�� other ��rovisions of law or court decision to the contraty, the provisions of this Agreement shall survive closing. (Remaiuder of this page is intentionally left blank.) 8 4G9�472v3 RC12S-349 IN WI"I'NI;SS WHEREOF,the undeisigned have eaecuted this Agreement on the c�ate and year above. Buyei•: Seller: ) I-Iousing and Redevelopment Authorit5� of the ^� - City of Ricl�field _`/_J_r_-------- `�-- 1r�_� r �- �y: ---- Its Chair � � And by: �._ Its Executive I�irector � 9 4G9472v3 RC125-349 r:.x��Hi�r A L,e ral Desct•i�tioii of Property I_,ot 13, I31ock 4, Augsburg Yark, including adjacent l/2 of vacated alley A-1 4G9472v3 RC125-349 EXHI131'T B WAIVER OF' RLLOCATI01�1 T3I+.NI:FITS I, the undei•signed Seller, acknowledge thai I met witli __ , a representative of the I-lousin� and Redevelopment Authority in and for the City of Richfield (the "HRA"), on __ _ _ , 2015 because I expressed a willingness to sell my i•esidence located at 7033 Garfield Avenue South, Richfield, Minnesota by approachin� the HRA to negotiate it buying my home. _________ explained that, in the event the I-IRA acquires nry residence located at 7033 Garfield Avenue, Riclrfield, Minnesota, I, as owner-occupant of that residence, rnay be entitled to certain relocatioii benefits in addition to the amount of moue��being paid to m�to acquire 1]ly residence. These benefits may include: I. Movin�Ex�ens�s 1. A payment for actual reasonable movin�expenses; or 2. A fxed payment deteili�ined in accordance v��ith applicable federal regulations. II. Re�lacement I-Iousing Payment l. A l 80-day liomeawnet• is eligible to receive a pa��ment up to $22,500 to purchase a home. 2. A 90-day homeowner or tenant is eligible to receive a payinent up to $5,250 to purchase or rent a house. III. Other Relocation Assistance This includes referrals and other assistance to help the ov�nier relocat� to a comparable decent, safe and sanitaiy dwelling. These payrnenis and seivices are required under the regulations oi'the Department af Housing and Urban Development (I IUD). The owner cannot be required to move fi•om Iiis home,unless he is given t•easonable opportunities to relocate to a comparable decent, safe and sanitary dwelling unit that he can afford. Pinally, it was explained to me that the tlnifoinl l2elocation Assistance and Real Pj•operty Acquisition Policies Act of 1970, as amended (the "UkA"), may entitle me to these relocation bene�ts and if I sign this Agreement, I will be w�aiving those rel�cation benefits as provided in Minnesota Statutes, § 117.521, including the movin� expenses of up to $1,975 or replaceinent payments as d€;scribed in the URA and other relocation assistance described above. �fter having these benefits explaitied to me, I agree to waiee them. In si�tiing this Agreement I ackno��ledge that no t�u•eats have been made to me, either expressly or by implication, and that the property wiil not l�e taken fi�oni rne thi•ou�h conden7iiation. If, after signing this Agreement, I attempt to collect relocation benefits, I wili l7ave to prove t.hat, contraiy to what I an� agreein� to in this ��reement, nry waiver of relocation beneiitg «�as not entered into voluntai�ily. B-1 469472��3 RC125-349 This flgt•eement is conditioned upou the I-�RA purchasing tny propei�ty for $110,000, unless othei��vise agreed in wt•iting. If this commitnlent to me is not fulfilled, the A�reement is null and void. " Dated: _ __, 2015 STLL,ER B3': _ — _—_ Its: STATC OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) ' The fore�oing instrument was acknowledged before ine this^ ___ _, 2015, by _ _ __�_____, as the seller of a residence lo�ated at 8033 Garfield Avenue, Richfeld, Minnesota. �Y� � _______� _ _.� Its: Chair BY� __ Its: Lxecuti`�e Director (SEAL) ST'AT� OF MiNNESOTA ) ) SS. COIJNTY OF HENN�PTN ) The foregoing instrument was acknowledged before me this , 2015, by _ _. and �_ __, the Chair and Fxecutive Director, respectively, of tl�e Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, on behalf of the Authority. 13-2 469472��3 RC'125-349 I!;XHIBiT C Sample I.,ease a��z��3 iicias-3a� C-1 33rd ;; � company RESIDENTIAL LEASE MinnesotaMulliHo�singAzwcialion � Sfandard Form ResidenGalLease THEMINNESOTAA'fTORNEYGENEAACSOFFICEHAS Copy�igbt�2012,REVI5EDlandary2072 CERTIFlED THAiTHIS LEASC COM PllES WITN THC MIhNC50TA PIAIN LANGUAGE CONTMCTACT. (Minnesota Statutes,Sections 325G.29-325G36�.Certification of a contract by the.AttorneyGeneral under the plain language rontract act is not otherwise an approval of the contract's legality or legal effec[. flE51DENT"(iis[all persons,and their Jatei o(bSth,who wil;Irve in Ihe apnrtmenl): MANAGEMEM(enter company name if applicablei:33'0 Company,Inc/rri;v:_33�dco_nse ii.cum I800 Woodda!e Drive,Suite 500,Woalbury,MN 55125/O(fice;(651)777-5500/Faz:(G51)77J-5501 SiqEETADDRE550f PREMISES(`Apartment"): APARTMENTNO.: DUBATtON OF LEASE(eoter oumber of monlhsor month-to-montf�J: STARTING DATE OF LEASE: DATETHIS CEdSE ENDS(if appropriate�: NO710E PERIOD:Two{2J months � MON7HLVAPARTMENTflENT:S IATERENTfEE:B%ofLateRent/530.O��NSF) . OTHER MONTHLY RENT CHARGES{e.g.garage):$ � TOTAL MONTHLY RENT:$ SENRITY DEPO51T:5 tRIL1T1E5�NCLUDEDINHENT: Heat Water Other. []Thepremises uctedpiior�o7978. IIfIUTIESPAIDBYRESIDENP. Eledricity Telephone Other. ❑Secaua e eofinionnation. (The follawing is required 6y Minnesoto Statutes,Sectian 50q8187) AuthorizedManagero(Apartment:33� Company,lnc./w�,.-e,�33•Acan:,:r�y.co�n Address�1800 Woodda!e-0rive,Suite 100,Wobdbury,MN 55125/Of(ice:(651)77-5500/Fax:(651)777-5501 An owner of the premises or an agent authoiized Lo accept service of process and receive and give�eceipts for a.d demands is: Owner contac[informalion is on(ile with 33`Comparry,Inc 33� Company is lhe agen[for service of proc Residentacknowledgesnoti(icatfono(MinnemtahttorneyGeneraltandlord/TenantHandbook,also b aL• tM1tp:llwwx:wswle.n:ies/&ix r>Ju�a:A�+�id-o�dTo�i r•I( 'Where appropnote,singWor teims used in thisLease inciude the p/urol,ondpronauns of one gende nclude all genders. � AddRional Agreements(if any)AII attached signed addenda are hereby incorporated as rt of the Lease Agreement • Resident has reviewed and accepts the 33rd Cwnpany,Inc.Building Ru!es{pe:par ).There will be a$5.00 administratrve fee[ha[will be deducted on the Ist of each monlh.Any personal property left i�the apar(ment(i.e.mowers, e c.�,are no[part of the lease and a�e IeR"as-is"Tor use a[tenants'and guests' own risk.Lease modification or renewal fees may apply,and are su6jec[to change ithoul notice.Resident and Management both agree[hat ALL d:sputes and complain[s shall be resolved priva[ely and conrden6aliy be[ween Re' an Management,or th�ough Ihe coorts,and both(urther agree not[o publidy d:sparage [he o[her par[y;this agreement sfwll survive Ihe lease.Tenant h r we and will comoiy wi[h all termsof applicab!e Home Owriers Associa[iq�s Rutes& Regulations. Res�den[agrees lhat Ihey sM1all maintain all uti i [he duration of the lease agreemenL Resident agrees that in the event tha[[hey vacate[he the home 6efae the end of the lease term,they shall b e le/or all costs aswcia[ed wfth the eady move ou[including,but rrot limited to rents,utilities, Snow and ice removal,lawn care,winteriza[ion,or c associated w�th the early move out. Management(octingasogen[faraw(yo e mises�ondResidentagreetothr[ermsofthisLeaseandanyattachmentsthatmay6emudeportofthisLense. . MANAGEMEM: - \ , 33i°Company,Inc,ManagemeA v � (Resident) Date BV: (Resident) Da[e Date Signed: (Resident) Date Resident acknowledges receipt ot the Lease by signature on this dowment TERMS OF iH15 LEASE A RENT i. PAYMENT:RESIDENTwillpayMANAGEM[Nithe(u�Imonth!yrentbeforemidnightoftheflrstdayofeachmonthwhilethisLeaseisineffectandduring any extensionsor renewafs of this Lease,ftent wiH be paid as requ�red by MANAGEMENT. 2. WH015 RESPONSIBLE FOR RENT.Each RESIDENT is ind�vidualty rezponsible for paying the full amount oF renl and any other money owed to MANAGEMENT. 3. DUTYTO PAY RENTAFTER EVICTION:If RESIDENi is evic[ed 6ecause RESIDENT violated a term of this Lease,RESIDENT mus[s[ill paY[he(uli monUJy rent untii:1)the Apartment is re-rented;2)the DATE THIS LEASE ENDS;o:3�if the Lease is month-to�month,the next notice period endsJf the Apartmen[is re-rented for less than the rent due under th�s lease,RESIDENT will 6e responsi6le tor the difference until the DATETHIS LEASE ENDS or,iRhe Lease is mon[h�to-mooth,until[he end of the next notice period. 4. LATE RENT FEE AND RETURNE�CHECK PEE:RESIDENi wili pay the LA7E RENT FEE lisred above if RESIDENi dces not pay the full monthly rent by the Sth day o(fhe monlh.RESIDENT a!so w'JI pay a fee for each retwned check o�ACH NSF. B. USEOFAPARTMENT . 5. OCWpANCYANDUSE:Onlythepersonslisteda6oveasRE51DENT5mayliveintheApar[menL Persunsno[IistedasRE51DENi5mayliveintne Apartmentonlywiththepriorwri[temm�sen[o(MANAGEMENT.RESIDEhTSmayusetheAparlmen[andutilitiesfornormalresidentialpurposeson!y. 6. SUBIEffING:RESIDENT may not lease the Apartment[o other persons(sub!eQ,assign this Leasc or sell this lease without prior written consen[of MANAGEMENT. 7. RFSIDENTPROMISES:1�Nottoadinaloud,boistemus,unru!yo!thoughUessmannerord�sturbtherightsofiheotherresidenfstopeaceandquiet,o� C'� 469R72v3 RC125-349 allow his/her guests to do so;2)to use the Apartment only as a pmate residenca,end not to engage in any activity or ailo�v any condition that is illegal or � dangerousor which wouW cause a wncellation,restric[ion or increase in premium in MAN.4GEP.IEM'S fnsurance;3)notto useorstoreon or nearthe Apartment anyflammable,tozic,hazardous,or eaplosive substance;4}not to in[erfere in the management and operetbn of tha Apar[ment bWMing;5) not to engage in haressing,threatening,or discriminatory wnduct directed at MANAGEMENT or other RESIDENTS;6)that the Apartment,wmmon areas, or area surrounding the 6ullding wNf not be used by the RESIDENi,any mem ber of the RESIDENT'S hausehold,any guest ot the RESIDENT,or by anyane acting under his/her control to munufacture,uil,glve away,Wrter,dellvxr,exchang¢,distribute,possess or use any iilegal dmgs;or to engage In prostltutlon or any prostlIIitlon related activity;w to unlawfulty use or possess any0rearm;or to allow anyatolon propertymi the promises. g. WATERBEOS:RESIDENTmaynntkeepawaterbedorotherwatervfilledfurnRUreintheApartmentwithoutthepriorwrittenconsentofMANAGEMEM. 9. PEiS:ftE51DENTmaynotallowanimalsorpetsofanykindintheApartmentorinanymmmonareaswithou[thepriorwrittemm�sentofMANAGEMEM. C. LONDIiIONOiAPQRTMfNT 10. MqP1pGEMEf1iPROMI5ES:1�ThattheApartmentandallcommonaroasarefitforuseasresidentialpremises;2)tokeeptheApartmentinreasona6le repair and make necessary repairs tvlthin s reasonable time after written notice by RESIDENT excopt when da mage ir caused by the intentionxl or negligent wnduct of the RESIDENT or hir/her guests;3)to maintain tha Apartment in compliance wRh applicable heakh and safety codez except lvhen a violation of the health and safety codes has been caused by the intentional or negligent conduct of the ftESIDENT or his/her guests;4)ta keep the common areas clean and in gocul rondttion. il. RESIDENTPROMISE5:1)NottodamageormisusetheApartmentorwastetheuti�itiesprovidedbyMANAGEMENToralbwhis/hergueststodosa;2�not to pain[or wallpaper the Apa rtment,or make a ny structurel changes(n the Apartment q�ithout the prior written consent ot MANAGEMEM;3)to keep the � Apartmant clean,and In compliance with all heahh a nd:afety codes;4)to give written notice to MANAGEMEM of any necessary repa irs to be made;5)to notify MANAGEMEM immediate�y of any conditions in the Apartment that are da ngerous to human heaHh or safety,or which may dainage the Apartment or waste utilities provided by MANAGEMENT;6)that when RESIDEN(mwes out,the Apartment will ba left in good condkMn,ezcept for ordinary wear and tear;7)not to remove any fixtures or furnishing supplied by 67ANAGEMENT wdhout the prior written consen[of MANAGEM EM;II)to cooperate witb - MANAGEMEM'Seffortsatpestwntrol.Thisrnaylnclude,amongotherthings,RESIDENT'Semptyingandcleaningcabinets,drawersa�closets,pulling � fumitureawayfromwalirandallo��-ingeMerminatortoenterandtreattheApartment,andrequiredappropriatetreatmentofRE51DEM'Spersonal property. 12. SENflINDEPOSff:MANAGEMENTmaykeepallorpartofthasecur@ydaposR:a)fordamagetotheApartmentbeyundordinarywearandtear,andb) � forrenYarothermoneymvedtoMANAGEMEM. 13, bESTROYEDOR�NLNABIEAPARTMENT:IttheApartmenthdestroyedordamagedsoitisunftttolivefnduetoanycause,MAN maycha�se nottorebulMorrestoretheApartmentand/ormayterminatethirLeaseimmed'atelywithnofurtharliabilitytoRES�DENT.Ifth ionordamage wasnotRE51DEM'SfaultandMANpGEMEMterminatosthisl.ease,rentwilibopraratedandtheba�ancewiliberefufxied SI T. D. DUMTIONOFLEASE � 14. FAILURETOGIVEPO5SES510N:NMANRGEPAEtJlcan�rotprovidetheApartmanttoRESIDEMatthestartofthls se,�NTcannotsue . MANAGEMEMforanyrasukingdamagesbutRESIDEMwillnotsWrtpayingrentuntilhe/shegetspossessionofth meni. 15. MOVING OUT BEFORE LEASE ENDS:If RESIDEM moves out of the Apartmeitt 6efore the DATE 7HI5 LEASE EN RESI T(s responsible for rent and any other bssas or wsts including wurt rosts. 16. TERMINATIONOFLEASEWITNSPECIFIEDENDINGDATE:NRESIDENTwishestomovaou[oftheApartm� DATETfI15LEASEENDS,RESiDEMmust give MANAGEMEN7 prior tvrkten notke equal to the NOTICE PEftIOD.H RESIDENi hils to give prope ANAGEMEM may a)eu[e�the Leace for orreNOTIf.EPENIODandb)raisetherent.IfRESIDENistaysintheApartmentaftertheDATETHIS �S,wkhtheapprovaloiMANAGEMEM,and RES�DENT and MANAGEMEM have not renawed th(s Lease or entered into a naw Lease,thc L I extended under its originaiterms except a)the duretion shall be changed to month-to•month,and b)MANAGEMEM may reise the rent. 17. TEpNlINATION ANDALTEMTIONOf MO1Rfi-TO-MONiIi LEhSES:When the Lease ism� onth,MANAGEMEM and RESIDfM mayterminatethe Lease only by giving the other party wriNen notice equal to the NOTICE PERIOD.A Ka t Inate a Lease is effective on the las[day o(n month. PAANAGEMEMmaychangeanyoftbotermsofamonth�to-monthLeasa,includin ntofrent,byg'rvingRESIDEMwrittenndiceatlnastequalto the NOTICE PERIOD. 16. MOVING OUT OF7HE APARTMENT:RESIDEM wlll move out of the ppartm when thls Lease ends.If RESIDEM movos out akerthts Lease ends, RESIDENiw1116eliabletoMANAGEMENTforenyresuhingbssesincluding ta�courtcosts. E. RIGtITSOFMANAGEMENT 19. EVICTION:NRESIDENTv"�datesanyofthetermsofthisLease,MA mayterminatathisleaseimmed'atelyandwithoutpriornotice.IfthisLease is termtnated but RESIDEM does not move out voluntarlly,MANAGEM. may bring an evictb�actbn.If RESIOENT violates a term of this Lease but � MANAGEMEMdoesnotterminatethhLeasa,orb�inganev" n ion,orsueRESIDENT,MANAGEMEMdoesnotwaWotherighttotakoenyofthese actbnsforanyotherv'alatlonofanytermoFthfsLease. at�law,alawfulseizurefromanyApartmeotofanyillegelobjectorcontrolledsubrtance, Includingdrugs,constitutesunlawFulpossessbnofth e bytheRE51DEM,andaregroundsforanlmmediateevictionaction. 20. EVICTIOHAFTERPARTIALVAYMENTOFIiEWT:It IyagreedtobetweenMANAGEMENTandRESIDENTthat,pursuanttoMlnn.Stat.§SOq8.291, subd.l{c),acceptancebyMANAGEMEMOflent ullamountofrentduafromRESIDEN7doesnotwafveMAP1AGEMENT'Srighttorecover posseasbn of the rental premises for nonpa ESIDEM of balance d rent owed MANAGEMEM. 21. ATTORNEV'SFEESANDENFORCEMENT ANAGEMENTbringsanylegalactionagalnstRESIDENT,RESIDEMmustpayMANAGEMEM'Sactual attorneys'faes,arothet(agalfees an luding fees pald to a collecibn agency,ezpensas,ernl court costs even if rent Is paid aherthe legal actbn Is sterted. . 22. MANAGEMEM'SRIGk1TTOENT� rdancewkhapplicablelaw,MANAGEMENTorftsauthorizedagentsmayentertheApartmentatany - � reasonabletimetoinspa p e afnteinorrepairthaApartrtrent,ordoo[hernecessarywork,ortoshowtheApertmenttopoten¢ialnow RESIDEMS or buyore. 23. MANAGEMENT'SL 0.L NDItEMEDIES:MANAGEMEMmayuseitslegalrightrandremedlesinanycombiiution.Byusingoneormoreofthese rights or remadies GEMEM does not give up any other rights or remedies k may have.Aaeptanca of rent doos not wafve MANAGEMENT'S rightto evktRESIDENi p orexhtingvblatbnofenytermofthislease. 24. LEASE IS S E TO RTGAGE:TheApartme�rt buliding map be mortgaged w may be subjecttoa contract for daed.RESIDEN!agreerthat the rights oftheho er resentorfuturemortgageorcontractfordeedaresuperiortoRESIDENT'Srlghts.Foreiwmple,ffamortgagaontheApartmant build�f eC d,thepersonwhoforecbsesontheApartmentlwlW(ngmay,attheiroptbn,terminateRESIDENT'Slea:e. F. 11A01LfiY0 ENTANDMANAGEMENT 25. DAMAG RINIURYTORESIDENTORHIS/NERPROPfRTY:MANAGEMENTisnotresponsibleforanydamageorinjurythatisdonetoRESIDENTorhk/Irer property,guerts or their property that was not ra used by MANAGEMENT.MANAGEMENT recommends that RESIDENT o6taln Renters Insurence to protect agalnst injudes or property damage. 26. AGTSOFTHIRDPART�ES:MANAGEMEMfsrwtresponsibleforthuactions,orforanydamages,Injuryorharmcausedbythirdparties(sucliasother residents,gues[s,intruders ortrespassers)who ere not under MANAGEMENT'S wntrol. 27. RESIDENTSHALLREIMBUliSEMANAGEMENTFORiJAnybss,propertydamage,orcos[ofrepairorservice(includingplumbfngproblems)causedby negligence or impropar use by RESIDENT,hfs/her egenis,family or guertr,2)any bss or damage caused by doors or windows being left open;3)all costz MANAGEMENT has becauze of aba�onment of the Apartment or other vidations of the Lease by RESIDENT,such as corts for advertising the ppartment. 26. WHEN PAYMENTS ANE DUE:Any amount owed by RESI�ENT is due when MANAGEMEM asks for tt.MANAGEMENT does not give up ks right to any money owed 6y RESIDEM beca use of MANAGEM1AEM'S failure or delay in asking for any payment.MANAG EMEM can askfor any money owed by RESIDENT before or eftsr RESIDEM moves out of tho Apartment. G. MISCELIANEOUS � . 29. PAISEORMIStEADINGRENTALAPPLICATIOH:NMANAGEMEMdeterminesthatanyoralorwrittenstatementsmadebyRESIDENTinthernntal appliwtion or otherwise are not true or wmplete,then RESIDENT has violated this Lease,may be evicted,and may be liable for damages aid addttbna I wstsand penakies undorapplicable law. 30. BUILDINGRULESANDATTACHMENTSAIiEPARTOFLEASE;NOOMLAGREEMENTS:AnyattachmentstothisLeaseareapartofthFLease.Hatermof any attachment confiicts with any term of this Lease,the attachment term will be rnntrolling.MANAGEMENf'S building rules are a part of this lease,and MANhGEMENT may make reawnable changes inthese rules at anydme bygiving RESIDENT wrkten notice.No oral agreemantr have been made.Thh Loase and Rz attachmonts and any otber written agroements are the entire agreement 6ehveen RESIDENi and MANAGEMENT. 31. NOTICES:AIIRESIDENTSagreethatnoticesanddemandsdeliveredlryMANAGEMENTtotheApartmantaroproparnotiretoallRESIDEMS,andare � effective as soon as delivered to tha Apartment. c,-3 469472v3 RC125-349 7033 Garfield Avenue .� �!,r�.,�, ; . , � �. �� - - �,,_ `'' ? "R40 ' . 1A / � � . wc« � , +� ��..a ��. ` fJ� � �t-�"rr �f '.��.'... �., kf � � ",M �'l � hl T}'r ✓ �7 y � ��` A� ,�t�•�K . R� , tt o��(':��;� 5� .�L. ��ya S� ,� �r` � t.a� �f� .P� ifi�iC�; ;. �c `,�"` t , � . � �• 1'�,., �, �d , • .�,�' A. , rt.. � a ,f ?r r. �. ,�:Y TS � '� ...�F �� ,�, ��;f � � �� t, � � ,��l � Y :`� ,�y,� `- ', �� i, ;.� ,�`� .� � �"� � * � .: r ;��'� ��, x � z e �� .'.qs"�, {yj;, . x ,� , ��@ mq�s� r�t y.�}.. �',� ,¢�i�'� i1'1� yF�i�` 'i ''„(a �' �� , A t �tp,�r� + r:� ��' ��a�k y �.� �;�,''w' wa~ �.�,`R� wA�i�� p*��- _5 r .� ir �"r :�,„ � "=. i�', n E�:;� , �� ..�� r:; �-a:::� _ � ��'�':k�� .� �� x. 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"' "" ` a• r t•C ..� �. , � .. , e , � . r �, . .� -. . .�.: w' �. .', ' -" ,y. �-�- _ �_, ,�,� . ..,' ' . .. ., ; �._ -_. r-. �� . - , ...,.... . . _ . __ � _ . _ ,.'_ .�.._....__ .:.s. ...'__... �. � , .� _. AGENDA ITEM#: 4B REPORT#: 36 ��°°.�.` '� ' � STAFF REPORT � � ,�` � `��"�'t`,�'{ HOUSING AND REDEVELOPMENT � � � � , �h�� ►,t � AUTHORITY MEETING NOVEMBER 16, 2015 REPORT PREPARED BY: MYRT LINK, COMMUNITY DEVELOPMENT ACCOUNTANT Na�uL,Tirr.r: REPORT PRESENTER: JOHN STARK, COMMUNITY DEVELOPMENT DIRECTOR NaNrr:, Tirr.[: DEPARTMENT DIRECTOR REVIEW: � , _ i' S/GN TURli REVIEWED BY EXECUTIVE DIRECTOR: r� � ITEM FOR HRA CONSIDERATION: Consideration of a Policy Statement to establish a policy for the Richfield Housing and Redevelopment Authority to withhold tax increment for outstanding tax petitions within established Tax Increment Financin Districts. L RECOMMENDED ACTION: By Motion: Adopt a Policy Statement establishing a policy for the Richfield Housing and Redevelopment Authority to withhold tax increment for outstanding tax petitions within established Tax Increment Financin Districts. II. EXECUTIVE SUMMARY Petitions by property owners to decrease the assessed value of their property within tax increment districts have become increasingly common in the tax increment districts located within the City of Richfield (City). These petitions are filed with Hennepin County (County). Due to the high volume of these types of petitions county-wide, it often takes the County several years to process them. If the petitions are approved, the decrease in the assessed value is granted retroactively. When petitions to decrease property values are granted, tax increment payable is also reduced retroactively. The reduction in tax increment revenus comes after the 1116215 Policy to withhold Tlxxx County has disbursed tax increment on the property to the City and Housing and Redevelopment Authority (HRA) and the HRA has paid the increment due to the Developer based on the terms of the Contract for Private Redevelopment, paid interfund loans and/or bond payments. Following the retroactive reduction in assessed value, the County will reduce tax increment payments to the City/HRA. This has the potential to cause a problem especially in Tax Increment Districts that are close to being decertified because the City/HRA has no recourse to recover increment that was overpaid to a Developer. The HRA's legal counsel, financial consultant and staff recommend that the HRA adopt a Policy Statement that allows the HRA to withhold or suspend tax increment payments in a district containing a tax petition until it is determined that there will be sufficient increment to cover any repayments the County may require. III. BASIS OF RECOMMENDATION A. BACKGROUND . The HRA currently has nine active Tax Increment Financing Districts. • Contracts for Private Redevelopment written in the late 1990's/early 2000's did not address tax petitions. • Contracts for Private Redevelopment with Lyndale Gardens, LLC, Woodlake Housing and any future Contracts either do or will contain language for the HRA to withhold or suspend tax increment payments related to tax petitions. B. PoLicY . It is HRA policy to identify and address issues arising in Tax Increment Financing Districts in an on-going basis. C. C�uTlca�.,TIM�G IssuEs • Tax Increment payments are due on February 1, 2016 and staff would like to send out the Policy Statement to developers well in advance of this date. D. FlrraNC1AL . The HRA would need to find other sources of funding if there was insufficient increment to repay the County in cases where the County reduced the assessed value and overpaid the increment. E. LEGAL . HRA legal counsel drafted the Policy Statement IV. ALTERNATIVE RECOMMENDATION(S� . Do not approve the Policy Statement . Approve the Policy Statement with revisions V. ATTACHMENTS . Policy Statement . Letter to Developers regarding Tax Petitions VI. PRINCIPAL PARTIES EXPECTED AT MEETING . None Housing and Redevelopment Authority in and for the City of Richfield, Minnesota POLICY STATEMENT REGARDING TAX PETITIONS FILED WITHIN TAX INCREMENT DISTRICTS Petitions by property owners to decrease the assessed value of their properly within taa�increment districts have become increasingly more common in the tax increment districts located within the City of Richfield (the "City"). Such petitions are evaluated by Hennepin County (the "County"). The City and the Housing and Redevelopment Authority in and for the City of Richfield,Minnesota(the"HRA") often find out about the petitions a significant period of time after they are filed. Due to the volume of these types of petitions, it often takes the County several years to process the petitions and if the petitions are approved,the decrease in the assessed value of property is granted retroactively. When petitions to decrease property values are granted retroactively, tax increment payable in previous years is also reduced retroactively. Unfortunately, the reduction in tax increment revenues allocable to a property comes after the County has disbursed tax increment far the property to the HRA and the HRA has paid the collected tax increment to developers for payments under various tax increment pay-as-you-go notes or other obligations, such as interfund loans or general obligation bonds. The tax increment paid out by the HRA is more than it should have been, based on the retroactive value of the properly in question. Following the retroactive xeduction in assessed value, the County will reduce tax increment payments to the City in an amount sufficient to make the County (and the School District) whole for the previous overpayment of tax increment. This creates significant difficulties for the IIRA staff in accounting for tax increment revenues, especially in tax increment districts that have more than one development and/or more than one obligation the HRA must pay with tax increment revenues. Depending on the timing of the petition, the HRA may have to repay the County for an overpayment of tax increment when there is not sufficient tax increment left in the tax increment district to repay the overpayment. In tax increment districts with more than one obligation owed to different parties,the party who filed the tax petition may receive too much tax increment and the other obligations within the tax increment will be short-changed. In circumstances where the tax increment district is close to its decertification date, the taxpayers of the City may end up being responsible to repay the overpayment of tax increment if there isn't sufficient tax increment left to repay the County. Because of the fiscal concerns related to petitions to decrease assessed values of property within tax increment districts,the HRA has determined to require that all developers in the City who receive tax increment assistance provide written notice to the HRA anytime it chooses to seek through petition or other means to have the assessed value of its property located in a tax increment district reduced. Upon receiving such notice, or otherwise learning of a developer's intentions to reduce the assessed value of its property located within a tax increment district, the IIRA may suspend or reduce payments due under a pay-as-you-go tax increment note or any other obligation payable with tax increment by the HRA until the actual amount of the reduction in market value is determined,whereupon the HRA will make the suspended payments less any amount that the HRA is required to repay the County as a result of any retroactive reduction in market value of the property within the tax increment district. During the period that the payments are subject to suspension, the IIRA may make partial payments on the a pay-as-you-go tax increment note or any other obligation payable with tax increment by the HRA, from the amounts subject to suspension, if it determines, in its reasonable discretion,that the amount retained will be sufficient to cover any repayment which the County will require. The HRA will provide written notice to developers when it determines to reduce or suspend tax increment payments based on a developer's intention to reduce the assessed value of property located within a tax increment district. When reducing tax increment payments, the HRA will use its best efforts to estimate the tax increment that would be payable based on the decreased assessed value requested in the t� petition and will reduce the tax increment payments accordingly. Complete suspension of tax increment payments will only be utilized if the tax increment district is near its decertification date and there is a reasonable concern that the estimated future tax increment will not be sufficient to repay the County without a full suspension of tax increment payments. No additional interest will be paid on withheld tax increment payments over and above the interest which accrues on the applicable pay-as-you- go tax increment note or other obligation payable with tax increment. Considered and adopted by the HRA Board on November 16,2015 � � � � Community Development Department � Housing and Redevelopment Authority November_, 2015 [DEVELOPER] MAYOR [ADDRESS] DEBBIE GOETTEL ' Re: CITY COUNCIL PAT ELLIOTT TOM FITZHENRY Dear , EDWINA GARCIA MICHAEL HOWARD This letter is to inform you of that the Board of Commissioners of the Housing CITY MANAGER and Redevelopment Authority in and for the City of Richfield,.Minnesota (the STEVEN L.DEVICH "HRA") has adopted a policy regarding tax petitions filed to reduce the assessed value of property with tax increment districts located within the City of Richfield. The policy is enclosed for your reference. Because of the fiscal concerns related to petitions to decrease assessed values of property within tax increment districts, the HRA has determined to require that all developers in the City who receive tax increment assistance provide written notice to the HRA anytime it chooses to seek through petition or other means to have the assessed value of its property located in a tax increment district reduced. � When a developer determines to reduce the assessed value of its property located within a tax increment district, and Hennepin County approves such a reduction, the decrease in assessed value is customarily granted retroactively. When this occurs, tax increment derived from that property is also retroactively decreased and it is the responsibility of the tax�increment district to compensate the County for the overpayment of tax increment revenues. When the HRA is notified that the assessed value of a property within a tax increment district may be reduced retroactively, the HRA may suspend or reduce payments due under a pay-as-you-go tax increment note or any other obligation payable with tax increment by the HRA until the actual amount of the reduction in market value is determined. Once the reduction in market value is final, the HRA will make the suspended payments less any amount that the HRA is required to repay the County as a result of any retroactive reduction in market value of the property within the tax increment district. The HRA will provide written notice to developers when it determines to reduce or suspend tax increment payments based on a developer's intention to reduce the assessed value of property located within a tax increment district. When reducing tax increment payments, the HRA will use its best efforts to estimate 6700 PO�A'�.��119t1�1NL�Q1�3tCHFIELD, MINNESOTA 55423-2599 Phone: 612.861.9760 FAX: 612.861.8974 www.cityofrichfield.org AN EQUAL OPPORTUNITY EMPLOYER www.cityofrichfield.org AN EQUAL OPPORTUNIN EMPLOYER (Name) (Date) Page 2 the tax increment that would be payable based on the decreased assessed value requested in the tax petition and will reduce the tax increment payments accordingly. Complete suspension of tax increment payments will only be utilized if the tax increment district is near its decertification date and there is a reasonable concern that the estimated future tax increment will not be sufficient to repay the County without a full suspension of tax increment payments. No additional interest will be paid on withheld tax increment payments over and above the interest which accrues on the applicable pay-as-you-go tax increment note or other obligation payable with tax increment. [For Woodlake only, Section 6.2 of the Contract for Private Development, between Woodlake Richfield Apartments, LLC and the HRA provides the HRA specific authority to suspend or reduce tax increment payments if a tax petition is filed to reduce the assessed value of property within the tax increment district.] [For Lyndale Gardens only, Section 7.2 of the Contract for Privafie Development between Lyndale Gardens, LLC and the HRA provides the HRA specific authority to suspend or reduce tax increment payments if a tax petition is filed to reduce the assessed value of property within the tax increment district.] If you have any questions, please contact Myrt Link, Community Development Accountant, at 612-861-9771 or mlink@cityofrichfieid.org. Sincerely, Steven Devich Executive Director Housing and Redevelopment Authority in and for the City of Richfield AGENDA ITEM#: 4C REPORT#: 37 � � STAFF REPORT r---°"�, � , dj j � �-'-��..�,rr.�.�. -�,_ HOUSING AND REDEVELOPMENT '`Y �'=','- *' . - "�� AUTHORITY MEETING �.1j��' NOVEMBER 16, 2015 REPORT PREPARED BY: JULIE URBAN/KATE AITCHISON,HOUSING � SPECIALISTS NAME,TITLE REPORT PRESENTER: ��N BARTON, ASSISTANT COMMUNITY DEVELOPMENT DIRECTOR Na�uE,Tirt& DEPARTMENT DIIZECTOR REVIEW: � NATURE � REVIEWED BY EXECUTNE DIRECTO : � , / i f,' r' ITEM FOR HRA CONSIDERATION: Consideration of a one-year extension of a Consulfing Agreement with the Center for Energy and Environment to continue offerin the Residential Ener Pro ram. I. RECOMMENDED ACTION: By Motion: Authorize a one-year extension of the Consulting Agreement with the Center for Energy and Environment to provide rofessional services for the Residential Ener Pro ram. II. EXECUTIVE SUMMARY In 2013, the Housing and Redevelopment Authority (HRA) approved a Consulting Agreement with the Center for Energy and Environment (CEE) to provide professional services for the City of Richfield's Residential Energy Program. CEE works with the utility companies to offer energy consulting services through the Home Energy Squad Enhanced program. The goal of the program is to reduce energy use and environmental impact by making it as easy as possible for homeowners to make energy-efficient improvements to their homes. The program has provided 373 energy saving visits in Richfield since its inception. Under the Consulting Agreement, the project runs through 2015 and can be extended upon mutual agreement by CEE and the HRA. Due to the success of and 111615 CEE Contract Extension.docx continued demand for the program, staff is recommending the Consulting � Agreement be extended for another year, through 2016. III. BASIS OF RECOMMENDATION A. BACKGROUND Included in Executive Summary above. B. PoLICY • The program furthers the following goals of the City's Gomprehensive Plan: o Support the rehabilitation and upgrading of the existing housing stock. o Support ongoing maintenance and upkeep of residential properties. o Promote the maintenance of affordable housing in the City. G CRITICAL TIMING ISSUES • The original contract timeline runs from January 2013 to December 31, 2015, and may be extended upon mutual agreement by the HRA and CEE. D. Fn�aNC1aL • $10,000 has been budgeted for the program in 2016. E. LEGAL • The Consulting Agreement was reviewed by legal counsel. IV. ALTERNATNE RECOMMENDATION(S� • Do not extend the Consulting Agreement with CEE. V. ATTACHMENTS • Consulting Agreement VL PRINCIl'AL PARTIES EXPECTED AT MEETING • N/A . �nASr�x c�r�sE��r��c A�R��nn�t�r wirta woRK o�r��xs ll�is COI�ISIJLTING./-�GREfM1.-NT ("Aqreement") is made by and betwePn thP I-lo��sing and 12ecieveic��ment Auih�rify in c�ru� fo� the Ci1y of Richfield, with offic�s at 6%00 Porfland Ave, Richfield, MN S54?_3 ("Authority"), and CFNTER FOR ENFf?GY nND ENVIRONMENT, with offices at 212 North 3«� Avenue, Suit� 560, Minneapolis, Minnesota 55401 ("CEE"). RECITALS A. AUTI-IORITY has a need for certain prof�ssional services and desires to retain CEF to provide said services, all subject to the terms and condilions contained in this Agreement. B. CEE is quafified io provide the desired professionai s�rvices and desires to provide said services for AUTHORITY,all subject to the terms and conditions contained in this Agreement. NOW, THEREFORE, in consideration of the foregoing and the i�nutual promises contained in this Agreement, the parties agree as follows: 1. Services/Scope of Work& Compensption CEE shall provide professional services under this Agreement pursuant to "ATTACHMENT A: Work Order for Delivering the Richfield Residential Energy Program," and any subsequently approved work orders to this contract. 2. Compensation AUTHORITY shall compensate CEE for the Services as follows: 2.i Compensation und�r this agreement shall not exceed the amount authorized under approved work orders. 2.2 CFE shali subi�r�it f� AUTHORITY, on a regular basis, invoices for services performed under this Agreement,including documentation of services rendered. AUTHORI7Y shall pay each properly submitted invoice within thirty (30) days after submission of fihe invoice by C:EE. 3. AU7HORITY's Obligations 3.1 �UTHORITY shGll make reasonable efforts to responcl prornptly to requests from CEE for information and approvals regurding the services fo l�e provided under this Agreement. 3.2 If requested by CEE, AUTHORITY shall make reasonabie efforts to obtain information and or permission for access from AUTHORITY's clients which may be necessary for CEE io provide the services under this Agreemeni. 3.3 AUTf-10RITY shall be responsibie for providing assistarice witl� in�plem�r�ting the residential program, as detailed in approved work order�s�. --_ 4. CEE's Obligatinns 4.1 CEE sha!!us�:its best efforfis to provicle s�rvices under this F,yr��mcnt in a professional munnei consiste��t with the care ar�d skill use�i by repulable i�-�emb�rs of CCk's profession. 4.2 CEE, and ali of its employees or agents, shall com��ly with c�ll statutes, ordinances, rules, regulations and other laws applicable to the pi�ovision of services under lhis Agreement. 4.3 CEE shall secure all permits and licenses required for performance of the services ui�der this Agreement. 4.4 CFE shall not engage in discriminatory employment practices against any employee or c�pplicant for employment and shall in all respects comply with all federal,state and local laws, regulations and orders, including without limifation, Chapler 363 of the Minnespta Statutes, as amended from time to time. Failure to compiy with the provisions herec�f shall be deemed a material default under this Agreement. 5. Term and Termination 5.1 Uniess earlier terminated as provided in the following paragraphs, fhis Agreement shall become effective on January 24, 2013, and continue until terminated by either party, or until all approved work orders are complete. 5.2 This Agreement may be terminated by either party, for any reason or no reason, immediately upon written notice to the other party. In the event this Agreement is terminated by CEE prior to the expiration of the term set forth in paragraph 5.1, CEE shall provide AUTHORITY with such information as AUTHORITY may request regarding the status of any ongoing project. 5.3 Any termination of this Agreement shall not release either party from their respective obiigations und�r section 7 of this Agreement. 6. Insurance 6.1 During the term of this Agreement, CFE will obtain and maintain insurance in the amounfis listed below: General Liability $2,OOU,000 Aggregate Limit Automobile Liabilify $1,000,000 Comk�ined Single l_imit Excess Liability $1,000,000 Aggregate Limit Professional Liability $1,000,000 Agr�regate I_imit Workers Compensation Statutory Limit 7. Confidentiality Unless otherwise agreed by AU7HORITY in writing, CEE shall maintain in confidence and not disclose to any third party any information obtained regarding AUTHORITY CONTRACT between HOUSING AND REDEVElOPMENT AUTHORIIY IN ANO FOR THE CIlY 01=RICHFIEL�and CENI"ER�OR � ENERGY AND ENVIRONMENT p�ge z CEE Doc�I594 and/or cmy of AUl�I-IOf21TY's clients for wl�ich CEE is providing s�rvices; provicled, however, that this obligation to mair�tain confidentiality shall nof ap�ly to: ci) Information in the ��ublic domain al 1he tirne of disclosure; b) Information which becomes part of the public domain c�fter disclosure through no fauit of CEE; or c) Information which CEE can demonstrate was known by it prior to the date of this Agr�ement. Notwithstanding the foregoing,CEE sl�all be entitled to disclose the documents or client informalion covered by this paragraph to governmental authorities to the extent CEE reasonably believes it has a legal obligation to make such disclosures and to the extent CEE reasonably deems fio be necessary;provided, however,that if CEE believes that any such disclosure is required by law,it shall provide advance notice to AUTHORITY to provide AUTHORITY with a reasonable opportunity to attempt to obtain an injunction or other protective order preventing such disclosure. 8. Subcontractors CEE agrees fo bind every subconlractor by the terms, conditions and provisions set forth in the contract that are applicable to the subcontractor's work, unless specifically agre�d otherwise in writing by the AUTHORITY. CEE agrees to pay every subcontractor within 10 days of receipt of paymeni from the AUTHORITY pursuant to Minn.Stat. 471.425. 9. Relationship of Parties CEE will provide services as an independent contractor under this Agreement. Neither CEE, nor any of its employees or agents, shall be considered employees of AUTHORITY for any purpose, ahd neither shall CEF be eligible for any compensation or benefits which AUTHORITY rnay provide to its employees from time to time. CEE shall be solely responsible for all employment and other taxes applicabie to providing services hereunder, and AU7HORITY will not withhold any taxes or conlributions frorri the compensation payable to CEE under this Agreernent. 10. Notices Ail notices, requests, dernands and other communic.�tions requirec�to be given in writing under this Agreement shall be given to thc other party in person or by mail as provided in this section. If delivered personaily, notice shail be deemed to have been duly c�iven on the date of delivery. If delivered by mail, such notice shall be senl via first dass U.S. mail, postage prepaid, to the address set forth at the beginninc� of fhis Agreement or such other address as a parfy may otherwise request by writfien notice, and notice shall be deemed duly given three �3) business days after mailing. 11. Assignm�nfi This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, successors and assigns; provided, however, that neither party shall assign or transfer in any manr�er, ihis Agreement or any portion hereof without the CONTRACT between HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD and CENTER FOR � ENERGY AND ENVIRONMENI' p�g�3 CEE Doc#1594 prior writtcn consent of the other party, and any attempi Po assign or transfer without pria�written consent shali be void and of no effect. 12. Governing Law This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesoia. 13. Miscellanec�us 13.1 Headinc�s and captions us�d in this Agreement are for conv�r�ience only and shall not affect the meaning of this Agreement. 13.2 This Agreement contains the entire agreement of the parties and supersedes ali prior agreements,discussions and representations, written or oral, concerning the subject matter hereof. 13.3 No waiver by AUTI-fORITY of any term or condition of this Agreement or any document referred to herein shall,whether by conduct or otherwise, be construed as a waiver or release of any other term or condition of this Agreement. 13.4 This Agreement may only be amended in a written agreement signed by both parties. 13.5 The rights pnd benefits under this Agreement shall inure solely to the benefit of AUTHORITY and CEE, and this Agreement shall not be constr�ed to give any rights, benefits or causes of qction to any third party. 13.6 The invalidity or partial invalidity of any provision of this Agreement shall not invalidate the remaining provisions, and the remainder shall be construed as of the invqlidated portion shall have never been a part of this Agreement. 13.7 This Agreement may be signed in any number of counterparts, each of which shall be cl�emed an original and one and the same instrument. IN WITNESS WHEREOF, the parties hav� executed this Agreement as of the date first written above. Housinc� and Kedevelopment Authority in and for the City of Richfield (AUTHORITY) _ By: �U�AMVIQ �SQ�nd�� ------- Its:_ Chair -- p�.yN,l�z �� Q-!'',c'°'��r � __ � �' Qate: � 23 J ��j _ -t- CONTRACT between HOUSING AND REDEVELOPMENT AUTHORIN IN AND FOR THE CIIY OF RICHFIELD and CENTER FOR ENERGY AND ENVIRONMENT Page 4 CEE Doc#1544 I-lousin Redevelop t Authority in and for the ' y o ichfield (�UT I'IY) �' _ �� Its: Executive Direc#or _ _____ -- $�f- vcH I�. ��.vi c.1�__�_�x�c�x.-l�ivt�o�r��-�r _Date: _ i.��J �� —.– -- -- ------- -- ._. Center for Energy and Environment (CEEj _��_�{==�- � �y � �c ._�l� ___ Its: Co�orate Secretar� _ ; Jennifer Amendt �^ _Date: __ � I� ��r I i 3 � �_� Tax I D # 41-1647799 T:\FINANCE\Projecfs�Rlchfield HRA\Richiield HRA Master CoNract CEE�oc I SAA.doc January 14,2013 CON7RACT between HOUSING AND REDEVELOPMENT AUTHORITY TN AND FOR THE CITY OF RICHFIELD and CENTER FOR ENERGY AND ENVIRONMENT p�9e; CEE Doc#1544 n�r��ac�-�n�Lrr�r�.: Work C2rde��#'or llelivea�i�eg a C'om�rehensive Kesicient6al L��ea�gy Efficiea�cy P��agra�n itt tt�e City of'I2iclAtield The followin�worlc order, including the below scope of worlc, is for the Center for Energy and Fnvironment(CFE) to delive�•a comprehensive residential energy efficiency progr�m to the residents of Richfield,in pa��tnei•ship�vith the Housing and Redevelopment Authority in and for the City of Rir,hfield (AU'1'HOKI"I'1')and witi�the suppoi-t of the City of Richfield(CITY), ln entering into this agreement,AUTHORITY aclaiowledges that their participation, as outlined under"AUTHORITY Taslcs"below, is critical to tl�e s�iccess of the program,and agcees to work towards completing these activities in good faith. This worlc ordei•is incoi��or�ted as part of the�pproved Master Consulting Agreement between AUTHORITY and CEE, identified as CEE Doc#I Sa4. PROGRA1Yl SCOPE The purpose of the comprehensive residential energy efficiency p►rogram describeci by this work order is to provide an easy and comprehensive pathway for Richfield residents to save energy tl�rough major energy upgrades,as well as tlu�ough low-cost�nd uo-cost approaches. The program has 4 major steps: 1)commimity engagement and marketing;2)educalional�vorkshops/presentations;2)Home Energy Squad visits;3)follow-up services as a path to major energy upgrades;and 4)contractor coordination. AUTHORTTY acicnowledges that CEE h�s agreements�vitl� electric and gas utilities that provide a major soucce of cost-share for the program by funding most of the cos�of the Home Energy Squad visits as weU as prescribing other aspects of program delivery,and that should these agreements change or be terminated, it may affect CEE's ability to complete this worlc scape. CEE Tasks: 1. Utilize comfrunrity engtrgetnent tec/trtiq[�es a�rd trn�litioi�nl mrn•keii�rg!o recrrrit pnrlicipmlts to works/ro�s. CEE will woric with AUTHORITY to develop a marketing plan, with an initial goal of rec�uiting 500 participants. CI:L will develop all marketing materials,as wetl as a supporting program website. CEE will be pritnarily responsible for executing the marl:eting plan, in parn�ei•ship with AUTHORITY. 2. Co�iduct Honre Gnergy Sqund Visits. CEE will conduct Home�nergy Squ1d visits to help homeownecs identify and implement energy savings opportwiities in their lwmes. Two types of visits will be offered: Ilome Lnergy Squad with diagnostics and Basic Hoine�ne�-gy Squad Visits. I3oth visits include the direct install of energy-saving materials where possible, including high-efficiency showecheads,weather- strippiirg,pi•ogrammable therniostats and compact florescent light bulbs. The diagnostics version also includes a blower daor test to check for•air leaks, visual iiispectiai�of iiisu�afion levels, fiu�nace ancl ltot �vater heater safcty check,and report to the homeowner on recommended enerey upgrades. The Basic version will not generally be marlceted,but is availlble primarily for renters,who��ould not pay for major upgrades,�nd thus do not need the diagnostic services. The AUTHORITY and Richfield resident co-p�tys for these visit types is listed in the table belo�v: Home Energy S uad w. dia nostics $70 $50 Basic Home Energy S uad(for renters) � $�40 $30 The co-pays and exact packages of sei•vices are subject to cliange based o�i��rogi-ammatic consideratior�s, including its agreement with utilities and other factors which are outside the bounds of this agreement. CEE will notify the AUTHORITY prior to any changes tal<ing effect. 3. Fallo�v-up serv�ces.CBE will follow-up i��ith home visit customers that were recommended major upgrades(an•sealing,insi►lation and furnace replacement)through email or by plione,and provide contact WORK ORDER between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD and CENTER FOR ENERGY AND ENVIRONMENT Page 1 CEE Doc#1545 5i-�� infonnt�tion for incoming calls fi�ou�i pa�ticipants»�ho h�ve follo�a�-up questians:�rter the home visit. CCE �i�ill offer financing options fo;those custor�ers Svho need fir�ai�cing,and;,elp customers n�vig�te eeh�ie foi7t�s aiul the contractar sele�:tion�;rocess. �!. C'ofrlrar_ror conrrltli(YflOt1. CEE n�ill J7ru��icte a quzlit��aa;;ui�ai;ce i;ro�ra�n f'or insulntion��id air sealino conh•actors,to ensure hi�h-quality worlc for program participai�ts,and inalce it eHSy for pragran�participants to tal:e the. identitied next steps. !� list of contractors participating in this qualit;assurane.e UroAr�m �i+ill be git�e��at the hume visit to Rich�eld residents(excepf foc the`Basic"versian of Tl�e home visit). All cartcactors on the list must first agree to meet CE)?.'s technical stAndards fa�install�tion,meet training and certificetion require�nents ideriti�ed by CEI,agree to have�vorl;checl:ed u��on request Ly CEE,anc! tix any deficiencies identified by CE�. AUTHOtZITY/�IT'Y�'aslcs 1. ,9sslsl rnrd coor'(I!!�llfC lN%lIl CEE Olt f17!/1•/telfrrg iiclinilies. This includes N�orl:ing«�ith CL�on press releases,artictes in C1Tl'ne�vsletters,��ter bil!inserts, promoting program on ti�e C1TY website,Cl'1'Y email lists,assistance in coordinating with neighhorhood�nd other CITY I�adei•s�nd assistance in resecving workshop And eveut space as needed. 2. Fr»vlde reGntes for borstenwners/!rn!cornplele hortre energJ�vislis. The��UTT-IORIT�' intcnds to offer rebates,to complement available utility rebates, for participants ttiAt complete insulAtion upgrades. PAYMENT CEB shall submit regular im�oices to AUTHORtTY for acti��ity perforn�ed m�der tl�is agreement. �UTHORITI'�vill reimburse CG�$�}0 per Basic Home Energy Squad visit and$%0 per Home Energy Squact Plus visit completed in the City of Rich�eld,not io exceed$20,000 per yeay�without tin�ther�uthorization from the AUTHORITY. Invoices��ill Ue emailed to Julie Urban(612-861-9775)at jurban�u cityofi•ichfield.org. TFIi�(ELCiVE Tlie project shall run through December 31,2015,and�nay be extended upon mutual agreement by the paities. In wiUiess thereof,the parties have ex�ctitect this ia�or(< order as of the dflte w�•itten belo�i�. HC�USTNG Al�l� PEDF.VELOPivIEN'T C'ci�T�R 1=CR ENERGl' �NL�EN\�tRGi�l��IENT al►7'HORI'I'1' It�AND FCfR Tf-TF_,CTT�'�F RlC'HFIE.LD � By: _____— Ei�. � -,�- , 't I..i.. �`t,., i -... Chair Persoi7 .r��;,,�fi�j�,,,e,;ar-co��o��t�s��ra,�v lllate� I3ate: t ;. : ,. ; ;.�..�__�____ _ B�'� _ TAX ID 41-1G47799 Executive Direc�lar Date: WORK 012DER belween the H�USIIVG AND REAEVELOPME(VT AUTHORI7Y I(V RNb FOR TI•tE CI"fY OF RTCHFIELD and CEN7ER FOR � ENERGY A.RD EN,�7ROhMENT �,�,��Z CEE Doc#1545 � AGENDA ITEM#: 4D REPORT#: 38 �•r� . STAFF REPORT � - ' 3' � � � � I . ,° � . . ��'�� HOUSING AND REDEVELOPMENT � .� :�,..t�. �� „��--�� - AUTHORITY MEETING . NOVEMBER 16, 2015 REPORT PREPARED BY: JOHN STARK, COMMUNITY DEVELOPMENT D�CTOx NAME,TITLE REPORT PRESENTER: JOHN STARK, COMMUNITY DEVELOPMENT Dr�cTOx NAME,TITLE DEPARTMENT DIRECTOR REVIEW: � , SI TURE ; � REVIEWED BY EXECUTNE DIRECTOR: ITEl�I FOR HRA CONSIDERATION: Consideration of a resolution to acquire redevelopment properties from the City of Richfield. I. RECOIvIMENDED ACTION: By Motion: Approve a resolution authorizing the acquisition of certain ro erties within the Cit of Richfield. II. EXECUTIVE SUMMARY City staff presented a Memorandum (City Council Memo No. 28) to the City Council on April 23, 2015 followed by a Worksession on April 28, 2015 at which it was advised that the City transfer properties held for the purpose of redevelopment to the Richfield Housing and Redevelopment Authority (HRA). The reasons for this advice are because State Statutes have established a more streamlined process for HRAs to buy and sell land for redevelopment purposes. HRA legal counsel provided the City Council with further information on the HRA's roles and abilities related to the ownership, sale and leasing of publicly owned land. Based on this recommendation, the City Council held a first reading of an ordinance authorizing the conveyance of property owned by the City of Richfield to the 111615 Resolution Accepting City Properties.docx Richfield HRA on October 13, 2015. The second reading of this ordinance is scheduled for December 8, 2015. The properties in question are located in one of three areas; the Cedar Avenue Corridor, the area on the east side of Portland Avenue just south of the 66th Street roundabout and parcels located at the former City Garage site (see attached full list of properties). III. BASIS OF RECOMMENDATION A. BACKGROUND • Staff provided City Council members with a memo (Council Memorandum No. 28) on April 23, 2015 in which this action was recommended. • At its Worksession on April 28, 2015, City Council members discussed this topic and directed staff to draft an ordinance for formal consideration. B. POLICY • State statutes prescribe a process allowing a City's HRA to purchase and sell properties for redevelopment purposes. C. CRITICAL TIMING ISSUES • Six properties included in the ordinance are affected by an Option Agreement held by the Ryan Companies. Those Agreements are set to terminate on June 30, 2016. Staff will delay the conveyance of those properties to the HRA until after that.date (unless Ryan is amenable to terminating those Agreements prior to that date). D. FnvaNClaL • The conveyance of the properties would result in a one-time expenditure (in the book value of the properties) to City accounts and commensurate revenue to HRA accounts. This transaction would be reflected in the 2015 financial reports for both the City and HRA. E. LEGAL • HRA legal counsel has advised this action and drafted the attached resolution. IV. ALTERNATIVE RECOMMENDATION�S� • None V. ATTACHMENTS • Resolution • List of properties to be transferred UI. PRINCIPAL PARTIES EXPECTED AT MEETING • None HRA RESOLUTION NO. RESOLUTION AUTHORIZING THE ACQUISITION OF CERTAIN PROPERTY WITHIN THE CITY OF RICHFIELD WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota ("the HRA") desires to obtain certain real property as described in the attached Exhibit A ("the Property") currently owned by the City of Richfield, pursuant to and in furtherance of its redevelopment efforts; WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to acquire real property within its area of operation; WHEREAS, the HRA has determined that acquisition of said property is in furtherance of its redevelopment purposes; and WHEREAS, four of the properties to be conveyed to the HRA (6615, 6621, 6627, 6633 17th Ave.) are subject to an Option Agreement with Ryan Companies, and the HRA shall not accept conveyance of such property unless the Option Agreement expires or Ryan Companies consents to the conveyance of such property to the HRA. NOW THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority in and for the City of Richfield: 1. The conveyance of the Property by the City to the HRA is hereby approved. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota on this 16th day of November; 2015. Mary B. Supple, Chair ATTEST: Doris Rubenstein, Secretary City of Richfield properties to be conveyed to Richf'ield HRA Cedar Corridor Redevelopment Area Address Tax Parcel Number Legal Description 6614 18�'Ave. S 26-028-24-41-0066 Lot 3,Block 2, Wexler's Addition 6620 18th Ave. S 26-028-24-41-0067 Lot 4, Block 2,Wexler's Addition 6626 18th Ave. S 26-028-24-41-0068 Lot 5, Block 2, Wexler's Additiori 6632 18�'Ave. S 26-028-24-41-0069 Lot 6, Block 2,Wexler's Addition 6638 18�'Ave. S 26-028-24-41-0070 Lot 7,Block 2, Wexler's Addition 6644 18�'Ave. S 26-028-24-41-0071 Lot 8, Block 2,Wexler's Addition 6700 18th Ave. S 26-028-24-41-0080 Lot 1,Block 3,Wexler's Addition 6708 18�'Ave. S 26-028-24-41-0081 Lot 2, Block 3,Wexler's Addition 6714 18�'Ave. S 26-Q28-24-41-0082 Lot 3,Block 3, Wexler's Addition 6720 18�'Ave. S 26-028-24-41-0083 Lot 4, Block 3, Wexler's Addition 6726 18th Ave. S 26-028-24-41-0084 Lot 5,Block 3,Wexler's Addition 6732 18�'Ave. S 26-028-24-41-0085 Lot 6,Block 3, Wexler's Addition 6738 18�'Ave. S 26-028-24-41-0086 Lot 7, Block 3, Wexler's Addition 6744 18�'Ave. S 26-028-24-41-0087 Lot 8, Block 3, Wexler's Addition 6701-03 18�'Ave. S 26-028-24-41-0107 Lot 16,Block 4, Wexler's Addition 6709-11 18�'Ave. S 26-028-24-41-0106 Lot 15,Block 4, Wexler's Addition 6721 18�'Ave. S 26-028-24-41-0104 Lot 13, Block 4, Wexler's Addition 6727 18�'Ave. S 26-028-24-41-0103 Lot 12, Block 4, Wexler's Addition 6733 18�'Ave. S 26-028-24-41-0102 Lot 11,Block 4, Wexler's Addition 6739 18�'Ave. S 26-028-24-41-0101 Lot 10, Block 4, Wexler's Addition 6745 18�'Ave. S 26-028-24-41-0100 Lot 9, Block 4, Wexler's Addition 6700 Cedar Ave. S 26-028-24-41-0096 Lots 1 and 2, Block 4, Wexler's Addition 6601 17�'Ave. S 26-028-24-41-0079 Lot 16, Block 2, Wexler's Addition 6609 17�'Ave. S 26-028-24-41-0078 Lot 15, Block 2, Wexler's Addition 6615 17'i'Ave. S 26-028-24-41-0077 Lot 14, Block 2, Wexler's Addition 6621 17�"Ave. S 26-028-24-41-0076 Lot 13,Block 2, Wexler's Addit'ion 6627 17�'Ave. S 26-028-24-41-0075 Lot 12,Block 2,Wexler's Addition 6633 17�'Ave. S 26-028-24-41-0074 Lot 11, Block 2, Wexler's Addition 6639 17�'Ave. S 26-028-24-41-0073 Lot 10, Block 2,Wexler's Addition 6645 17�'Ave. S 26-028-24-41-0072 Lot 9, Block 2, Wexler's Addition 66t"&Portland Roundabout Address Tax Parcel Number Legal Description 6613 Portland Ave S 26-028-24-32-0049 Lot 34,Auditor's Subdivision No. 340, Hennepin County, Minnesota 6617 Portland Ave S 26-028-24-32-0048 Lots 33 and 59,Auditor's Subdivision No: 340 � 6621 Portland Ave S 26-028-24-32-0047 Lot 32,Auditor's Subdivision No. 340 6625 Portland Ave S 26-028-24-32-0046 Lot 31,Auditor's Subdivision No. 340 Former Citv Garage Site Address Tax Parcel Number Leg;al Description 7700 Pillsbury Ave S 34-028-24-34-0073 Lot 6, Block 4, "R.C. Soens Addition" 7644 Pillsbury Ave S 34-028-24-34-0072 Lot 3, except the North 75 feet thereof, and all of Lots 4 and 5, in Block 4,"R.C. Soens Addition" AGENDA ITEM#: 5 REPORT#: 39 �X��; , • . STAFF REPORT �' � : ,�� ,� r ��''�� HOUSING AND REDEVELOPMENT � �� `�� AUTHORITY MEETING _ r •y NOVEMBER 16, 2015 REPORT PREPARED BY: JULIE URBAN/KATE AITCHISON, HOUSING SPECIALISTS NAME,TITLE REPORT PRESENTER: ��N BARTON, ASSISTANT COMMUNITY DEVELOPM T DIlZECTOR NantE,TizLc DEPARTMENT DIRECTOR REVIEW: � S A�'aa�' REVIEWED BY EXECUTNE DIRECTOR: � ITEM FOR HRA CONSIDERATION: Public hearing and consideration of a resolution authorizing the sale of 7029 Nicollet Avenue to Jan Beckius and Keith Holloman and a Contract for Private Development with Jan Beckius and Keith Holloman for the construction of a single family home under the Richfield Rediscovered Pro ram. I. RECOMMENDED ACTION: Conduct and close the public hearing and by motion: 1. Approve a resolution authorizing the sale of 7029 Nicollet Avenue to Jan Beckius and Keith Holloman, and; 2. Authorize execution of a Contract for Private Development between the Housing and Redevelopment Authority and Jan Beckius and Keith Holloman for the redevelopment of 7029 Nicollet Aven ue. II. EXECUTIVE SUMMARY Jan Beckius and Keith Holloman (the Homeowners) are applying to purchase the lot at 7029 Nicollet Avenue to construct a new single family home. They are working with builder Benoz Homes, Inc. to construct the house. The new home would be a two-story home with three bedrooms, two bathrooms and a detached two-car 111615 RR Lot Sale 7029 Nicollet Avenue(Beckius Holloman).docx garage. The new home will be approximately 2,250 square feet with a minimum end-value of$400,000. III. BASIS OF RECOMMENDATION A. BACKGROUND • In 2014, the Housing and Redevelopment Authority (HRA) purchased 7029 Nicollet Avenue for $70,000 and demolished the existing home. B. POLICY • Removes substandard, functionally obsolete housing and eliminates its blighting influence. • Provides new, higher-valued housing. • 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: • The house will be set back 40 feet from the front property line, consistent with the adjacent houses. • The roof line includes three gables, and a variety of materials are used on the front of the house, all of which minimize the visual impact of the home's height. • The garage is located in the rear of the lot, accessed by the alley. C. CRITICAL TIMING ISSUES • The Contract requires the Homeowners to close on the property by February 1, 2016, and to complete construction by September 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 60-foot wide property and structure in 2014 for $70,000. • The appraised value of the property as a vacant lot is $55,000. • Under the terms of the Contract, the $55,000 will be due at closing. • Under the terms of the Contract, the minimum market value of the house will be $400,000. • Under the terms of the Contract, the Homeowners 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 November 5, 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. V. ATTACHMENTS • Resolution • Contract for Private Development • Elevations and floor plans of proposed home • Survey of proposed home • Landscape plan • Photo of 7029 Nicollet Avenue VI. PRINCII'AL PARTIES EXPECTED AT MEETING • Jan Beckius and Keith Holloman, Homeowners • Ben Akhigbe, Benoz Homes, Inc. HRA RESOLUTION NO. RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 7029 NICOLLET AVENUE TO JAN BECKIUS AND KEITH HOLLOMAN 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: 7029 Nicollet Avenue South Legal: The North 62 feet of the South 210 feet of the East 148.8 feet of the West 181.8 feet of the Northwest Quarter of the Northwest Quarter of the Northeast Quarter of Section 34, Township 28, Range 24, Hennepin County, Minnesota WHEREAS, the HRA is authorized to sell real property within its area of operation after a public hearing; and WHEREAS, the purchasers of the described property has been identified as Jan Beckius and Keith Holloman, and WHEREAS, a Contract for Private Development has been prepared, and the sale price of 7029 Nicollet Avenue is $55,000 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 7029 Nicollet Avenue is authorized to be sold for $55,000.00 to Jan Beckius and Keith Holloman; 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 16th day of November, 2015. Mary B. Supple, Chair ATTEST: Doris Rubenstein, Secretary CONTRACT FOR PRIVATE llEVELOPMENT Between HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD and Jan Beckius and Keith Holloman for pro�erty located at 7029 Nicollet Avenue South This Instrument Drafted by: Housing and Redevelopment Authority in and for the City of Richfield 6700 Portland Avenue South Richfield, Minnesota 55423 Telephone: {612) 861-9760 CONTRACT FOR PRIVATE DEVELOPMENT THIS AGRE�MENT, made and entered into as of this day of �20 , 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 Jan Beckius and Keith Holloman,wife and husband (Buyer). 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 Buyer 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 canying out the obligations of the Redevelopment Plan, will be in the vital best iuterests 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 Buyer, each party does hereby represent, covenant and agree with the other as follows: ARTICLE I. DEFINITIONS,EXHIBITS,RULES OF INTERPRETATION Section 1.1. De�nitions. In this Agreement, the following terms have the meaning given below unless the context clearly requires otherwise: . 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. 1 410567v1 ,IAF,RC125-65 Develonment. The Property and the Improvements to be constructed thereon according to the Construction Plans approved by the HRA. Event of Defa�ult. Event of Default has the meaning given such term in Section 8.1. Guidelines. The Richfield Rediscovered Program Guidelines Lot Sale Program, revised Febivary 18, 2014, and attached as Exhibit B to this Agreement. Itt�provements. Each and all of the structures and site improvements constructed on the Property by the Buyer•, as specified in the Construction Plans to be approved by the HRA. Minimum Market Value. $400,000, which is the ininimum market value for the Property and Improveinents as confirmed by the Hennepin County Assessor. Pro er . The real property legally desci•ibed as: The North 62 Feet of the South 210 Feet of the East 148 8/10 Feet of the West 181 S/10 Feet of the Northwest 1/4 of the Northwest 1/4 of the Northeast 1/4 of Section 34, Township 28, Range 24,Hennepin County, Minnesota having a street address of: 7029 Nicollet Avenue South Unavoidable Delavs. Delays which are the direct result of strikes, labor troubles, fire or other casualty to the Improvemeilts, litigation commenced by third parties which results in delays. or acts of any federal, state or local government, except those conternplated by this Agree�nent, which are beyond the control of the Buyer. Section 1.2. Exhibits. The following Exhibits are attached to and by reference made a part of this Agreenient: A. Form of Cei�tificate of Coiiipletion B. Program Guidelines—Lot Sale Program C. Form of Quit Claim Deed D. Well Disclosure � Section 1.3. Rules of Internretation. � (a) This Agreement shall be interpreted iti 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 2 4105G7v1 JAE ItC125-65 (c) Refei•ences 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 inteipreting any of its provisions. ARTICLE II. REPRESENTATIONS AND UNDERTAKINGS Section 2.1. Bv the Buver. The Buyer makes the following representations and undertakings: ' (a) The Buyer has the legal authority and power to enter into this Agreement and has duly authorized tlie execution, delivery and performance of this Agreement; (b) The Buyer has the necessary equity capital or will obtain commitments for financitlg necessary for construction of the Improvements; (c) The Buyer will construct the Improvements in accordance with the terms of this Agreement and all local, state and federal laws and regulations; (d) The Buyer 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 inust be obtained or met before the Improvements may be constructed; and (e) The plans for the Improvements have been prepared by a qualified draftsperson or architect. (� The Buyer intends to reside at the Property following completion of construction of the Improveinents and is not acquiring the Propei�ty for the purpose of resale or speculation. (g) The Buyer has read and understands the Guidelines and agrees to be bound by them. Seetion 2.2. Bv the HRA. The HRA inakes�the following representations as the basis for the undertaking on its part herein contained: (a) The HRA is authorized by law to enter into this Agreement and to carry out its obligations hereunder; and (b) The HRA will, in a timely maimer, subject to all notification requirements, review and act upon all submittals and applications of the Buyer and will cooperate with tl�e efforts of Buyer to secure the granting of any permit, license, or other approval required to allow the construction of the Improvements. 3 4105Gh�1 JAI3 RC125-65 ARTICLE III. ACQUISITION OF PROPERTY; CONVEYANCE TO BUYER Section 3.1. Purchase of Pronertv bv Buver. The HRA agrees to sell the Property to Buyer and the Buyer agrees to purchase the Property fronl the HRA in an "as-is" condition. The HRA agrees to convey the Property to the Buyer 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 will be $55,000. Section 3.2. Title and Examination. As soon as reasonably possible after execution of this Contract for Private Developinent 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 Buyer or to Buyer's designated t�tle service provider; and (b) Buyer shall obtain the title evidence determined necessary or desirable by Buyer or Buyer's lender, including but not limited to title searches, title examinations, abstracting, a title insurance commitment or an attorney's title opinion, at Buyer's selection and cost, a�ld provide a copy to the HRA. The Buyer shall have 20 days from the. date it receives such title evidence to raise any objections to title it may have. Objections not inade within such time will be deemed waived. The HRA shall have 90 days from the date of such objection to affect a cure; provided, however, that the HRA shall have no obligation to cure any objections, and may inform Buyer of such. The Buyer 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 Suecial Assessments. Real estate taxes and installinents of special assessments will be prorated between the HRA and Buyer as of the date of closing. Section 3.4. Soil Conditions and Hazardous Wastes. The Buyer acknowledges that the HRA makes no representations or warranties as to the conditions of the soils on the Property, its ftness for the construction of improvements or any other purpose for which the Buyer 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 Buyer to conduct such tests regarding soils conditions and liazardous wastes as the Buyer may desire. Permission to enter the Propei�ty to conduct sueh tests must be given in writing under reasonable terms and conditions established by the HRA. Section 3.5. Site Cl_earance. 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 Buyer. Buyer will comply with all of the provisions of the Guidelines relating to tree protection, preservation and replacement. 4 410567v1 JAG RC125-65 Section 3.6. Other Preconditions to Closin . Closing may not take place until the HRA is satisfied that the proposed Improvements are in all respects in full compliance with the provisions of the Guidelines contained in Exhibit B. Section 3.7. Closing. Closing must take place on or before February 1, 2016, or such other date as may be agreed to by the Buyer and HRA in writing. At Closing, pursuant to Section 5.1, the Buyer will provide the HRA with $10,000 to be held in escrow until the Improvements are completed. Section 3.8. Closin� Cosxs. The Buyer will pay: (a)the closing fees charged by its title insurance company or other closing agent, if any, utilized to close the transaction for Buyer; and (b) the recording fees for the Contract for Private Development and the deed transferring title to the Buyer. The HRA will pay all other fees normally paid by sellers, including: any transfer taxes, and any fees and charges related to the filing of any instrument required to make title inarketable. Each party shall pay its own attoriiey 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. Seetion 3.1_l. Well Disclosure. HRA's knowledge of wells on the Property is disclosed in Exhibit F. ARTICLE IV. CONSTRUCTION OF IMPROVEMENTS Section 4.1. Construction of Improvements. The Buyer shall cause the Improvements to be constructed 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. Section 4.2. Buildin� Plans. No building permit will be issued by the City unless the building plans are in conformity with the Guidelines contained in Exhibit B, the Construction Plans, the required Minimum Market Value, other requirements corltained in this Agreement, and all local, state and federal regulations. The Buyer shall provide the HRA with a set of huilding 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 Buyer in writing stating the deficiencies and the steps necessaiy 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. 5 410567v1 JAE:RC125-65 Section 4.3. Schedule of Construction. Subject to U�avoidable Delays, construction of the Improvements shall be completed prior to September 1, 2016. All construction shall be in conformity with the approved Construction Plans and the Guidelines. Periodically during construction the Buyer shall make reports in such detail as may reasonably be requested by the HRA coiicerning the actual progress of construction. If at any time prior to completion of construction the HRA has cause to believe that the Buyer will be unable to complete construction of the Improvements in the time permitted by this Section 4.3, it may notify the Buyer and demand assurances from the Buyer regarding the Buyer'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. Certificate of Comnletion. After notification by the Buyer 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, the HRA shall furnish the Buyer with a Certificate'of Completion in the form attached hereto as Exhibit A. Such cei�tification by the HRA shall be a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement with respect to the obligation of the Buyer to construct the Improvements. At the time a Certificate of Completion is issued, the HRA will also provide Buyer with a $5,000 cash rebate if Buyer 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 Buyer with a written statement, indicating in adequate detail in what respects the Buyer has failed to complete the Improvements in accordance with the provisions of this Agreement necessary, in the opinion of the HRA,for the Buyer to take or perform in order to obtain such certification. Section 4.5. Failure 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. Buyer 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 Buyer. At Closing, Buyer 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 Buyer 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 Buyer if: (i) the Buyer receives a Certificate of Completion; and (ii) the Buyer is not otherwise in default of any of its obligations hereunder. If such have nat occurred, an Event of Default shall be deemed to have occurred and the HRA may exercise its remedies under Section 8.2. In certain 6 � 410567v1 JAG RC125-65 circumstances, after construction is complete, the Builder or Buyer may be required to deposit another cash escrow with the planning department of t�ie 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 5ection 6.1. Financing. Within 20 days of the date of execution of this Agreement, the Buyer shall submit to the HRA evidence of financing for the Improvements in compliance with the provisions of Section 2.1(b) of this Agreement. If the HRA finds that the financing is adequate in amount to provide for the construction of the Improvements, the HRA shall notif}� the Buyer of its approval. If the HRA i�ejects the evidence of financing as inadequate, the Buyer shall have 30 days or such additional period of time as the Buyer may reasonably require from the date of such notification to submit evidence of financing satisfactory to the HRA. If the Buyer fails to submit such evidence or fails to use due diligence in pursuing 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 until Buyer has provided HRA with acceptable evidence of financing for construction of the Improvements. Section 6.2. Couv of Notice of Default to Lender. Whenever the HRA. shall deliver any notice or demand to the Buyer with respect to any Event of Default by the Buyer 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 this Agreement at the last address of such holder shown in the records of the HRA. Seetion 6.3. Subordination. In order to .facilitate obtaining financing for the construction of the Improvements by the Buyer, the HRA may, in its sole and exclusive discretion, agree to inodify this Agreement in the manner and to the extent the HRA deems reasonable,upon request by the financial institution and the Buyer. 7 a�os6�>>>.�n�ttct2s-�s ARTICLE VIL PROffiBITIONS AGAINST ASSIGNMENT AND TRANSFER Section 7.1. Representation as to Redevelopment: The Buyer 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 Buyer 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 Buyer are of particular concern to the HRA. The Buyer further recognizes that it is because of such qualifications and identity that the HRA is entering into this Agreeinent, and, in so doing, is further willing to rely on the representations and undertakings of the Buyer for the faithful performance of all undei�takings and covenants agreed by the Buyer to be performed. Section 7.2. Prohibition A�ainst Transfer of Pro�ertv and Assi�nment of Agreement. For the reasons set out in Section 7.1 of this Agreement, the Buyer represents and � agrees that prior to the issuance of the Certificate of Completion by the HRA: (a) Except only by way of security for, and only for the purpose of obtaining financing necessary to enable the Buyer or any successor 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, the Buyer, except as so authorized, has not made or created, and that it will not make or create, or suffer to be nlade 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. ARTICLE VIIL 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 Buyer to pay when due the payments required to be paid or secured under any provision of this Agreement; (b) Failure by the Buyer 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 Buyer 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; 8 4105G7v1 JAE RC125-65 . (d) If the Buyer, 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 Buyer, a receiver of the Buyer or of the whole or substantially all of its property, or approve a petition filed. against the Buyer seeking reorganization or arrangement of the Buyer under the federal bankruptcy laws, and such adjudication, order or decree shall not be vacated or set aside or stayed within 60 days fi�om the date of entry thereof; or (e) If the Buyer is in default under any �nortgage 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 Buyer as provided in Section 9.3 of this Agreement: (a) Suspend its performance under this Agreement until it receives assurances from the Buyer; deemed reasonably adequate by the HRA, that the Buyer will cure its default and continue its performance under this Agreement; (b) Cancel or rescind this Agreement; (c) Withhold the Certificate of Completion; or (d} 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 Buyer 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 mortgagee succeed by foreclosure of the mortgage or deed in lieu thereof to the Buyer's interest in the Property, it shall, notwithstanding the foregoing, be obligated to perform the obligations of the Buyer under this Agreement to the extent that the same have not therefore been performed by the Buyer. Section 8.3. Revesting Interest in HRA Unon Hannening of Event of Default Subsepuent to Convevance of Pronertv to Buver. In the event that subsequent to the closing or the sale of the Property to the Buyer and prior to the issuance of the Certificate of Completion: (a) The Buyer fails to begin or cause to begin construction of the Improvements in canformity with this Agreement, and such failure is not due to Unavoidable Delays; (b) The Buyer, after commenceinent of the construction of the Iinprovements, defaults in or violates obligations with respect to the construction of the Impravements, including the nature and the date for the completion thereof, or abandons or substantially suspends construction woc•k, and such act or actions is not due to Unavoidable Delays; 9 410567v1 3AE:RC125-65 (c) The Buyer or its successor in interest fails to pay real estate taxes or assessinents 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 inechanic'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 Buyer fails to coinply with any of its covenants under this Agreement, then the HRA shall have the right upon 30 days' written notice to Buyer and the Buyer's failure to cure within such 30 days period, to re-enter and take possession of the Property and to terininate and revest in the HRA the interest of the Buyer in the Property; provided,however,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 Buyer 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 VIIL Section 8.5. No A�lditional 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; Renresentatives 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 Buyer, or any successor in interest, for any�vent of Default by the HRA or for any amount which may become due to the Buyer 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 10 4(0567v I JAE RC I 25-65 the City shall be considered a part of this Agreement and binding on the Buyer 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 sha11 be sufficiently given or delivered if it is sent by mail, postage prepared, return receipt requested or delivered personally: (a) As to the HRA: Richfield HRA Housing Specialist 6700 Portland Avenue South � Richfield, MN 55423 (b) As to the Buyei: Jan Beckius or Keith Holloman 10120 Chestnut Gircle N Brooklyn Park, MN 55443 or at such other address with respect to either such party as that pai�ty may, from time to time, designate in writing and forward to the other as provided in this Section 9.3. Section 9.4 Caunterparts. 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. I1 410567v1 .IAE RC125-65 IN WITNESS WHEREOF, the pat•ties have caused tl�is Agreeinent to be duly executed as of the day and year first above written. 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 instruinent was acknowledged before me this day of , 20 , by , the Chairperson of the I�ousing and Redevelopment Authority in and for the City of Richfield, Minnesota, a public b�dy corporate and politic under the laws of Minnesota, on behalf of the authority. Notaty Public STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoin� 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. Notaiy Public l2 410567v1 JAI�RC125-65 Signature Page of Buyer to Contract for Private Development STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of ' 20 ' by , Notary Public 13 410567��1.IAG RC125-65 EXHIBIT A FORM OF CERTIFICATE OF COMPLETION The undersigned hereby certif es 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 Cidat d Richfield, Minnesota and � , filed _ as Document No. 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 RICI�FIELD By; , Its: Chairperson By: Its: Executive Director STATE OF MINNESOTA ) ) SS COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this __ day of , 20_, by and the Chairperson and Executive Director of the Housing and Redevelopment Authority in and for the City of Richf eld, 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 (612) 337-9300 A-1 410567v I JAE RC(25-65 EXHIBIT B PROGRAM GUIDELINES—LOT SALE PROGRAM RICHFIELD REDISCOVERED PROGR�4M GUIDELINES LOT SALE PROGRAM REVI$ED: February 18, 2014 aios��.-� .i�E:lic�as-�s B-1 PROGRAMOBJECTIVES............................................................................................................................3 DEFINITIONS................................................................................................................................................3 PROGRAM BASICS ........................................................o.......3 ..................................................................... APPLICATION REQUIREMENI°S .....................................................4 ........................................................... ADDITIONALREQUIREMENTS...................................................................................................................5 HOUSE DESIGN AND SITE DEVELOPMENT REQUIREMENTS...............................................................5 New House Standards ........................................................................................6 .................................... SiteStandards.........................................................................................................................................6 Construction Requirements...................................................................................................................7 GeneralStandards..:.............................................................................................................................. GreenCommunity Concepts..........:.......................................................................................................8 CITY REVIEW PROCEDURE .............................................................................................8 .......................... LOT SALE 1°O BUILDER/BUYER.........................................................................................................:......9 PROGRAMMARKETING.........................................................:...................................................................9 DATA►PRIVACY............................................................................................................................................9 B-2 410567v1 1AE RC125-GS 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 Appticant: 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 8uyer's Buitder or Builder's subcontractors, or the Builder's realty agents. may occupy or purchase the property. Buyers, unless licensed in the trade specified, may r�ot 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 �evelopmenf: A contract between 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. IIL Program Basics 1. HRA publishes a list of available vacant lots for purchase incfuding safe price and development criteria. B-3 410567v1 JAti RC125-65 2. BuilderlBuyer 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. $fi25 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 ptan A landscaping plan must indicate the location and type of trees, shrubbery, flowers and landscaping materials(e.g. rocks, mutch)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. B-4 410567v I JAE RC 125-65 15. Proof of sufficient worker's compensation insurance coverage by the Builder. 16. Written warranty prograrn To be provided to the Buyer, which guarantees at a minimum, warranted repairs as required by Minnesota State Statute. V. Additional Program Requirements 9. The Applicant is expected to meet with an architectural/design consultant prior to submitting an application. A two-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 ar 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 pravided 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 reve►ter 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 devetopment 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 concems of the HRA. B-5 410567v1,IAE 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 aesthetically 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 landscaping 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 the house, or as approved by the H RA. 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 shalt encroach upon neighboring properties. B-6 410567v1 JAE RC125-GS 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"donuY'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 properiy 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 batanced 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. B-7 410567v1 JAE RC125-65 E. Green Community Concepts Priority wiil 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. If 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 1ot 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. Jf 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 �taff 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. B-8 410S67v1 JAE RC125-65 11. If approved, the Contract for Private Redevelopment is executed by the HRA. VIII. Lot Sale to Builder or Buyer 9. 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#he 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. 8uyer 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 hefd 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 alsb 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. B-9 4105G7v1 JAE RC125-65 EXHIBIT C QUIT CLAIM DEED STATE DE�D TAX DUE HEREON: $ Date: FOR VALUABLE CONSIDERATION, Housing and Kedevelopment 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 , Grantee, real property in I3ennepin County, Minnesota, described as follows: , according to the map or'plat thereof on file or of record in the office of the Heiinepin County Recorder. This deed is subject to that certain Contract for Private Development between Grantor aiid Grantee, dated �, 20� (the "Contract"), recorded _, 20_, in tlie 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 docuinent. ❑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. HOZISING AATD REDEVF.LOPMENT A UTHORITY IN AND FOR TH�CITY OF RICHFIF.LD Affix Deed Tax Stamp Here By Its Chairperson By Its Executive Director Gl 410567v1 JAI: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 Authorit�� 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 PERSOIV 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 SEAI;(OR OTHER TITLE OR RAK) Check hei•e if part or all of the land is Registered(Torrens)❑ Tax Statements for the real property 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 G2 410567v1 JAI3 RC125-65 EXHIBIT D WELL DISCLOSURE ❑ The Seller cei�tifies that the seller does not know of any wells on the described real property. ❑ A well disclosure cei�tificate 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 410567v1 JAE RC125-65 Minnesota Department of Healtl► 1 N E S T A Well Mauagement Section P.O.Box 64975 St Paul.Mianesota 55164-0975 651-201�587 or 800-383-98U8 a�x�.h�o(th.srate.»m.us/di►siehMsells a WELL DISCLOSi3RE STATEMENI' Prior to signittg an agreement to sell or transfer rea]propeity,t�e seller nmst ah�-a�-s disclose in ti�mituig(�vell disclosw�€statemeirt)the location aud stah►s(��ell status defiued belo��•)of all wells on tlie property to the biryer. alon�R�ith the le�al description and coiwty of the properry,and a sketch map shoci-u�g the location of each nrell or indicate there are no�c°ells on die property. WELL DISCLOSURE CERTIFICATE A WeU Dfsclosuir Cei•tificate is required to be filed when t6ere sire R•eUs on the prope►�ty�. • At the tiine of closing.the��ell disclosure statement inforn�ation.along nith the pmperty buyer's nawe and inailing address,must be pro��ided on a Well Disclosure Certificate(WDC)fcmn.When recording a deed or . other instivn�rt of con�-eyance requiring a Certificate of Real Estate Value(CRV).a coiupleted WDC inust be filed�vith the county recorder.inctudiug a S50 fee payable to the crnuity recorder. • If thece is a pre�iously fited WDC:uid the munber of�ceQs and�or the�vell status bas changed,a nen�WDC'niust be filed.You may search for pre�iously filed WDCs at: xnvw.health.sint�.mn.us/divs/ehlwells/disclosuresldisclai»rer.htmJ. s If the nwnber aixl status of�vzlls on the property mnain imchanged since the pre�-iously filed WDC,a statenient nmst be placed on t1�e deed or other instnuuent of conveyante that reads "I am familiar ivith the property describeal in this instrume�rt an�l l cem,fy that the state�s and number ojwells on the descrrbed real propertj�hm�e not cha►iged since the last�eviously ftled well disclosru�e certiftcwte."This statement iuusr be certified by tUe buyer ar seller and no WDC is required. If there are no a•ells o�tLe propert`�,a�VeII Discbsure Certi6cate is not required to be 61ed.Ho��-ecer,the Seller must certify a stateinent ou the deed or other iushwucnt of conveyaace that reads "71ie Seller ce►n;res that the SeJler does not,Eriow of any ivells on the described reut properh�." Il�STRUCTIONS FOR COI�IPLETI1iG THE WELL DISCLOSL?RE CERTIFICATE A�50 fee must be included�vhen suUmittuig tlus forni to the crnmty reco�er's office.The fee is to be paid by the buyer or person filing tlie deed.Please make the check payable to the Cowity Recorder.A rnpy of this WDC shoidd be pro�°ided to the property buyer at the tuue of closu�g. PROPERTY,Bi�YER,APiD SELLER Il��'OR1►ZATION A. PROPERTY LOC'ATION LEGAL DESCRIP?ION-Pmz�ide the coiu�ty name;•tuiplatted"a uiztes and bo�mds description(quartilz[one quarter seetiou is required]or go�emnient lot.secrion,tonlislup,and rauge mm�ber):and�'or'platted"(lot uwuber and°or block number,and addition name);property strezt address(if applieablz).and city(this is the physieal locatiou of the pinperty not the uiailing address):property ID nwuber ar pa�cel ncmiber(option�►1).Attach a complete legal desc�Yphon af the property. B. PROPERTY BL`YER DiAILI1�'G ADDRESS AFTER CLOSI?�G-Proride the buyer's fi►ll nauie(or compaay na�ne if buyer is a couipany).fiill add�YSS.and phone mm�txr(iucluding area code).Be sure to u�ciiule a coutplete u�ailiug addi�ss.If tl�e property is jointly ot�ned.pi•ozide the uame and caniplete mailing address of the crnuact person. SeUer's\Ame-Please pro�-idz the i�uie of the seller ui space pro�•ided(please print}. D-2 410567v1 .IAE RC125-65 C. CERTIFICATIOl�BY SELLER-Tlie sell�•(or desigaiated i�resentati�-e)s(�otild sipi tliis certificaTe before tt is submitted to Cl�e coiu�ty recorclei''s office.If the seller�s tu�aUle to sign tl�e dociunent,the lnryer{or designated repres�uati�-e)may sig►►the certificate befo��e it is suUnutted to tl�e county��co�<ter's office. D. C'ERTIFICATIUN BY BL'YER-If the seller is unable to sipi the docwne►it.tlie buyer(or designflted i�reseutati�e)niay sign the certificate befrn�e it is subiuitted to t}�couf►ty�rcorder's office.�Ti►here deeds are �nen in fulfillinent of a Contraet for Deed die��mast be signed by the bayer or the person a�ithorized to aet on behalf of the buyer. Signature Reqaired-Tliene inust Ue at least one signature on tUe eeitificate. �VELL INFOR�1iA1IOr E. \�'ELL LUC:ATION LEGAL DESCRIPTIOI�-For each�reU being tiisclosed the folloc�tin�pl�ysical location infrnntatian is required: • cawty nanie.quartile(one quarter section is required).section.to��uship.and raage miuiber:andlor • county nauie,gm:e�uinznl Iot•section,to«�nship,and range nwiiber:and/or • county nanie.lot munber and�or btock�iwnber.and additton i��e ��'ELL STAT[,'S IP4FaRi1LATION-Indicate thz stetus of each we1L Cbeek oniti onc boz. In L se-A well is`•u�use"if the��ell is operated an a daily.t�egular.or seasonal basis.A��•e11"in nse"incliules a t��ell that c�rates for the pittpose of irrigation.fire protection or euier�eney puuiping• Not In L1se-A well is"not u�use"if the�°ell does not meet the defuubon of'YU use"above and ltas tiot been sealed by a licensed�vell contraetor. • If tl�e�vell is`'not in use:'is lhere a Muuiesota Depantineui af Health(I�H)ti ariau�ce for this�veli'Please pi,ovide tl�e varianoe macl:�u�'-mu�be�'(TN).if l:non�n. • If tl�e��-e}I is`•not in use:'is tl�ere an NIDH n�intenance peruiit for this�vell?Please pro�-ide the pemut muuber. if 1�0��. SeAled-A t�ell is"sealed"'if a licensed well crnitractor tu+s co�upletely fiiled a�vell by ptnnping g�x►t material tluoughoitt the entire mell after removal of any obshucrioa�s from the��ell.A WeU and Boring Sealiug Record must be on&te w�ith the MDH.Contact the MDH.to t�rify if a sealing record is on fite.A cvell is"capped"if it has a metal or plastic cap or cover wl�ich is thrended balttd.or�velded onto the tap of the��-ell to prevent entry inm the�vell. A"cxpped"�e{I is not a"seaMd"t�'ell. Importanf\�'ell Ststus In[ormation: � The MDH�vill fallo�v-np�'ith the pi�ty bayer regand�ng Auy tvelis disclosed as'Ziot'sn use."If a�i•ell is'^uot iu�tse."tlie pro�ty on�'tuust either retum tlie n'ell to"in use."l�a�e tlie��ell"sealed"by a licensed well contrsetor,or obtam au aan�uil mainteuanee penuit fi�wu the MDH for S t 75. � Maintenance penuits are not transfeixble.If a n�ell is"in use:'a uiaintennnce pemut is not required. • If tlie n ell has been"sealed"by so�neone otl�er than a licensed t�rell conh�actor or a Iieensed n�ell sealiug contraetor.checl the«ell stams�s"�iot in nse." • Additioaal Well Iaformation-Pro�-ide the follo��g infoauatiot�.if kno�li: Minnesota Unique Well Ntunber oa' Sealuig Reeord Nimiber,date of�vell covstnietion ar sealing.and naule of licensed well contractor. SKETCft A�IAP-Coa�lete the sketch ivap a5 instructed rni the�VDC.The location of each tvell must be uidicated. If the location of a�reTl is not lu�a��n.ha�-e the n-ell located Uy a�erson qu�►lified to loc�te��-e11s,siuh as a licensed �•ell contrACtor. if you ha�e questio�s.please contact the IviDH RTell It•ianagement Sectian at 651-201-4587 or 8(}0-383-9S4�i. To request this docmueut in another fonuat,ca11651-201-�G40. Deaf and hard-of-�earuig: TT�6S 1-201-i797. Visit the MDH Well Maaagement Sectiou,Nell Disclos�u'e Progrtuu��°ebsite at: �{Rti'11•.J�eaJth.state.mn.crsldivslehh►�ells/c,�sclosr�,rs. D-3 410567v1 JAE RC125-65 COIINi�'USE OrZ'1' 111DA Lt�Oi�i.l' vIINA'ESOTA DEP�+IRT�iE1�T OF HF.�11_TH Well Mana�ement Section,P_O.Boa 64975,St.Paul,Miarcsoh 55164-0975 651-20111.587 or 8�0-383-9808 «'ELL DISCLOSI?RE C'ERTIFICATE PLEASE TYPE OR PRIM'AIL INFipR�li1770N � Person filin deed mtut include a S50 fee ble to tLe con recorder. A. PROPERTY LOC'ATIOA'LEGAL DE3CRIPTION Attach a legal description of the property_ Cowrty Section No. Township No_ Rwge No. Quacter(ot GoveimnetU Lot) Hennepin Lot No(s). Blodc No. Addition Name Ow1ot Tract Proper�y Street Address City/I'awmsirip Z[P Cak PSroperty ID NoJParcel No.(optional) Richfield 55423 B. PR4PER'IY BUYER MAILING ADDRESS AFTER C1,OSING First Name Middle Iaitial Last Natne CompaayName(if applicable) Mailing A�dd[ess Meiling A�dt�ess C�Y State/Pro�-u�ce ZIP Cocle Telepl►one No_(inchxling atea code) ��,;��.��t� Housing and Redevelopment Autharity in and fnr the City of Richfieid C. CERTIFICATION BY SELLER I cettify diat the infa�matian pro�7ded an this cerlificate is acc�uate and complete po t6e best of my lmowledge- Sigpadae of Selkr or Desigmted Represeutati��e of Seller Date D. CERTIFICATIOl�BY BUYER For futfillrr�ent of a canhact for deed,the buyer or petson auWoriDed to act on behalf of the 6tryer,must sign a Well DisclosUCe CeitiScate if t�em is a well on the property. Tn the abselrce of a 9eller's s�gnat�me,the bu}+er,or person anWoriaed to act on beLalf of the buyer mey sigu this Well Disciosum Certificate_No signature is requirect by the buyer if the seller has signed above. Based on disclosure iufaamstiam provided to me by We seller or other available information,I certify fhat the u�forniation on this certificate is accutate and complete to the best of my lmowledge_ Sigoawte of Buyec or Designated Re�xesentatiy e of Buyer Date L•�iPORTAi�T 1�TOT'E: The Minnesota Degartrnent of Health(IaIDE-n will follow-up with the prope�ty buyer mgarding any a�ells disclosed as not in use.If a well is not in use,the prop�rty owner musi either rrhun the well to use,6ave the w•ell sealed by a licensed well coutractor,or obtain an azmual ma�ntenance permit from We MDH for S17S.A copy of tlus Well Disclosure Certificate should be pm��ided to tl►e propelty buyer at ihe time of closing. D-4 410567v1 JAI:RC125-65 ��TESOTA DEPART«:�T OF HEALTH ��cate Total Nmnber of �VEI.L DISCLOSLTRE CERITFICATE wells�Propecty PLEASE 7YPE OR PRIN7'ALL INFORMA77UN Fill aut a separate well infom�ation page if inore tuan t�co�t�ells are lacated on the property. E. �'VELL LOCATION LEGAL DESCRIPTIOi� �'VELL#1—If fhe property 1eF�l desaiPtioa has more than one section.towastup.or iange raunber:quarter(or goce�ni bt);a lot or block mmiber; ^ide le descri ion infon►iation m din 1he ical location of dris well. County 5ecpicm No. Township No. Ruige No. QuacUer(or Govemment Lot) Hennepin Lot No. Block No. Adciition Name OWlot Tract MN Uuique Weli No.or Sea3iag Record No. R�LL STATI�S(Check aily au box) Date of Well C�s1r►utioo ar WELL IS: ❑ In Use(1) ❑ Not ia Use(2) ❑ Sealed by I,icenseJ Well Co�actor(3)'` ��t°g `CaA�te�•erif,c snWg recerd is oe�e. Name oflicensed WeU Cvntractas 1f the weU has beet►sealed by saaneone other Iha�►a licensed we7t contrac�°r or a ticensed weli sealing c�hador,checic q�e�1 stamu as not ia nae- Aiso see"IINPORTANT NOTE"on 1. If well is not in use,is there an MI}H��for Qris well? S the x�ell is not in use,is tbere an MDH maintenance permit for ❑ Yes ❑ No this w�ell? ❑ Yes ❑ No If yes,provide tLe vaziance tracl�mg mttnber('IN) ff yes,provide the penmt mimber 1VELL#2—If the P�aP�Y��+�has more tlnm oae sertiai.tm�mshiP.or r�mkrnber:4umta(or P,o�e�lot):or lot or blodc mw�e�: c desai � inSamatioo r dm dr �cal locatiwm of ihis we1L C��y Sectioa No. Ta�wnslup No. R�ge No. Qwuter(or C�rnmssaent Lot) Lot Nio. Block No. Additiaa Nazne OWlot Tr�t MN Lknqae R►ell N�.or Sealing Reca�d 1Vo- �:'EI.I.sTaTi%s�er�clC aily«�e bm�� nate otwell c«istrucaon o� WEI.L I5: ❑ In Use(1) ❑ Not in Usx(2) ❑ Sealed by Licensed Well Cmtrador(3)` ��1°g �Ca9�iDH es tmty sea�mmd is ea Sk. Natne of Licensed Well Cantracror ff tLe weU has 6een snled by sotrra�e a8ver 9ua a licettud weYt conhxtor or a 6censed wdl sealing cautcxta�,check ihe uell spNs as not in use Also see"AlPORTANT NOTE"on 1. If wrll is n�in tue,is there an MDH variance for 8ris vwell? If d�e well is mt in use,is drre an MDH mai�e�oce pemiic£or � Yes ❑ l�io this well? ❑ Yes ❑ No If yes,�uovick th�e warim�ce hackiug number(Ti� If yes,Peo�yde the pamit m�mba SI�TCH AfAP—�reod�the location of the wdl(s)and include estimated distaaces from coads,streets.and builtlings.If more tian nae Hell on propert}•,use tbe a ell iocation namber abo�'e to idevti[�•each nrR The location of tLe weti(s)ruust be prosided.If dee locati�of a wdl is not tmown,ha�•e dze weli located by a}xrsou qualified to locate wells,such as a licen9eel arll co�ractar- Infonvation pro�tided on dvs foim is classified as public infamntion i�der Mitmeso�a stt+h'tes•Clxpter 13. To request this docm��t m a�other facmat,ca11 65 1-201-4600.Deaf and liacd-of-lieuiug= TI1'651-201-5797. Visit tlie NIDH Well Managen�rt Section-Well Diulos�ae Progratn v��ebsite at: i��+-.henith.state.rnn.r�s!dii5�ehhtel/s%disclasrnxs. 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'+ ��fZ°� �rm Y �."P.r �a' i4 i<, •��d � - '1 . r7� �r r � � � � ��'�z ��'i �3 :a i � . ,� t ° 7 ' �.-9�j5'G t �s v. t� _,-.,:.1,��i"£�}: i e .�� ,(e '�y ��i �� Y„` � `\� + y 4 'p„P ��5 �' z . � ., �1_, 1,:F ;_ �q�jf F 7 YI n4y`'�z S L�lf Ss:�.Uy El �1 4� N�>�.`� i ��l� 1 y ��'flfr i��Y � j �^'1 1` � �,. � ��.�I �fe;!..1 J.�,.T r�y,l u i�..�x �z'.. �;� ic U ,l }�. f�y��..} � 'C'r� y�e'.. � H..e.1f � ��"I !.:?, 1. . _ , r ; ,r d, y�., .., ';,YrCJ j.r,.{��_;.� '•r-, ,r,,r K ; . ..,<,_.�,r , .i'1'`Y. �� l S � . , ��... � :i'� �l� , :z �� ''� AGENDA ITEM#: 6 REPORT#: 40 ,.._.�--�-- ; '`�� ; � STAFF REPORT � � �i � . �'•,� ,� ��`��"'�"'� �� HOUSING AND REDEVELOPMENT � ; ` �� '� "�,j=� � ^ AUTHORITY MEETING NOVEMBER lfi, 2015 REPORT PREPARED BY: JULIE URBAN/KATE AITCHISON,HOUSING SPECIALISTS NAME,TITLE REPORT PRESENTER: ��N BARTON, ASSISTANT COMMUNITY _ DEVELOPMENT DIIZECTOR NAME,TITLE DEPARTMENT DIlZECTOR REVIEW: � - SIGNAT REVIEWED BY EXECUTNE DIRECTOR: ' J ITEM FOR HRA CONSIDERATION: Consideration of a Contract for Private Development between the Housing and Redevelopment Authority and Endres Custom Homes, Inc. for the redevelopment of 6713 Queen Avenue under the Richfield Rediscovered Pro ram. I. RECOMMENDED ACTION: By Motion: Approve and authorize execution of a Contract for Private Development between the Housing and Redevelopment Authority and Endres Custom Homes, Inc. for the redevelopment of 6713 Queen Avenue. II. EXECUTIVE SUMMARY Endres Custom Homes, Inc. (the Builder) is applying for a Richfield Rediscovered Credit to purchase the property at 6713 Queen Avenue. The Builder would remove the existing substandard home and construct a new home on the lot. The new home would be a two-story home with three bedrooms, three bathrooms and a detached two-car garage. The new home will b�e approximately 2,000 square feet with a minimum end-value of$360,000. 111615 RR Credit 6713 Queen.docx III. BASIS OF RECOMMENDATION A. BACKGROUND • Endres Custom Homes, Inc. has submitted an application for a $50,000 Credit to redevelop the property at 6713 Queen Avenue. • The proposed 2,000 square foot house will have three bedrooms, three bathrooms and a two-car garage. • The existing structure has been inspected by the Housing and Redevelopment Authority (HRA) inspector and qualifies as substandard, per the program guidelines. • Prospective Richfield Rediscovered participants bear a significant cost in redeveloping developed lots. The $50,000 redevelopment subsidy addresses the financing gap and provides an attractive incentive to replace a substandard housing structure with a new home that meets the needs and desires of today's households. • The property is bank-owned. The Builder has a Purchase Agreement on the house. • The Builder has a prospective end buyer for the house, and will have a firm commitment by the time of the closing. B. POLICY • The proposed project meets the objectives of the Richfield Rediscovered Program: • Removes substandard, functionally obsolete housing and eliminates its blighting influence. • Provides new, higher valued housing. • Alleviates shortage of housing choice for families. • Facilitates the HRA's "Market Rate Initiatives" by providing two owner-occupied houses designed 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: • The house will be set back 35 feet from the front property line, consistent with the adjacent houses. • The mature tree in the front yard will be preserved. • The garage is located in the rear of the lost, accessing the alley. C. C�TICAL TIM�vG IssuEs • The Contract requires the Builder to close on the property by February 1, 2016, and to complete construction by July 1, 2016. D. FINANCIAL • Under the terms of the Contract, the $50,000 will be distributed in one installment, due and payable upon completion of construction. • The 2016 Richfield Rediscovered budget allows for two credit developments. E. LEGAL • The HRA Attorney has reviewed the terms of the Contract for Private Redevelopment. • No public notification is required on this item; however, notification of the meeting was sent to property owners within 350 feet of the subject property, as a courtesy. IV. ALTERNATNE RECOMMENDATION(S� • Do not execute the Contract for Private Development. • Amend the Contract for Private Development and direct staff to work with the Builder to revise the proposal. V. ATTACI�v1ENTS • Contract for Private Development • Elevations of proposed home • Landscape plan of proposed home • Photo of 6713 Queen Avenue VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Dustin Endres, Endres Custom Homes, Inc. CONTRACT�OR PRIVATI:DLVCLOPMI�N'1' Between HOUSING AND REDEV�I,OPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD and ENDR�S CUSTOM ��OMES, INC. Related to Property Located at 6713 QUEEN AVENUE 50UTH This Instrument Drafted l�y: Housing and Redevelop�nent�uthority in and for the Cit3�of�iclifield 6700 Portland Avenue South Itichfietd,iVIN 55423 61�-8(i1-9760 410517v2 Jl�E RC12S-65 C�NTRACT I+OR PRIVATE DL+'VELOPMF,NT THIS AGRN:EA�EIVT, �nade and e»tered il�to as of t�his � d1y of 2�_ by and between tl�e Housing and Redevelopment Authority i�i 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 Avenl�e, Richfield, Minnesota (HRA), and Cndres Cusfom Homes, Iuc. (B uyer). 1'VI1'NrSSET��: WHEREAS, t}le City c�f Richfield (City) and tl�e HRA have previously created and established a I�edevelopment Project (Project) pursuaut to the authorit:y granted in Minnesata Statutes, Seclions 469.001 thi•ough 469.047(the Act); and 'VVH�REAS, pursuant to the Act, the City and the HRA have previously adopted a redevelopinent plan (IZedevelopment Plari) to finance all or a portion of the public development costs of tlie Project; and WHERE�S, in order to achieve the objectives of the Redeveloplue�it Plan and particularly to make si�ec;ifieci land in the Projeet available fvr development by private enterpr•ise for and in accordance with the Redevelopment Plau, the HRA has detel•mined to provide substantial aid alid assistance to finance development costs in the Project; and VVHEREAS, the Buyer has pi•oposed a development as hereinafter defined withiu the Project which the HRA has detei•mined will promoi:e and c�rry out the objeetives for which the Project has been undertalcen, wil) assist in canying out the obligations of the Redevelopment Plan, will be in the vital best iiiterests of the City and the health, safety and welfare of ils residenCs and is in accord with the public purposes and provisions of the applicable state and local laws and requir•ements under which development in the Project has been under•taken and is being assisted. NOW, THEREFORE, in consideration of the inutual covenants and obligation of the HRA and the Buyer, each party does hereby represent, covenant and agr•ee with the other as follows: ARTICL�L DEFINITIOIVS9 EXHI�ITS, RUL�,S OF INTI+:RPRETATION gection 1.1. Definitions. In this Agreement, tlie followin� terms have the rneaning ' given belaw tanless the context clearly requires otherwise: I3uver. Eridl•es Custom Hon�es, Inc. Ci��. The City of Richfield, Miunesota. Closii�, The date on which Buyer•closes on the Purchase of the Propec•ty. 410517��2 JAti RC125-(S � Coiistructioi� Plans. The CO1lSCf'UCtIOTl plans approved by the HR� pursuant lo Section 4.1 of this Agr•eement. The Construction Plans include a schedule for construction of the Improvemenls, pre(imijiary plans and schetnatics of t17e Improvements to be co��structed, and a landscapin�plan. Development. The Property aud Che Impro��ements to be consri•ucted tl�ereon accordin� to the Constiuction Plans approved by the HRA. Event of Default. Event of Default has the meaniilg given such term ii1 Section $.1. Guidelines. The Richfield Reciiscovered Program Guidelines for the Redevelopment Credit Program, revised July 25, 2011 and attached as Exhibit A to this Agreement. HRA. The t��usiug and Redevelopment Eluthority in and for the City of Richfield, Minnesota. Lnnrove�nents. Each and all of the structures and site improvements ecznstructed on the Property by the Buyer, as specified in the Consh•uction Plans approved by the HRA. Minimum 1Vlarket Value. $360,000, which is the miniinum ma►•ket value for the Propei°ty and ImprovemenYs as confirmed by the Hennepin County Assessor. Propertv. The real property legally described as: Lot 21, Block lfi, "Tingdale BroChers Lincoln Hills Addition", Hennepin Cowity, Minnesota having a sq•eet address of: 6713 Queen 1�venue South lZede��eloninent Proiect or Proiect The Redevelopment Pi•oject established by the HRA pursuant to Minnesota Statutes Sections 469.001 through 469.047 and described in the Redevelopment Plan. Redevelopment Plan. The plans f�r implenientation of the Redevelopment Project adopted by the HRA pursuant to Miiinesota Statutes Sections 469.001 through 469.047. Unavoidable Delavs. Delays which are the direct result of strilces, labor troubles, fire or other casualty to the Improvernents, li�igation commenced by tl�ird pat•ties 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 Buyer. �ection 1.2 F:xhibiCs. The following Exhibits are attached to and by reference made a part of tl�is Agreement: A. Pro�ram Guidelines B. Certificate of Co�npletion 410517�2.IAE IZ<'I 25-65 2 Section 1.3 Rules�f Interni°etation. (a) T1�is Agreement shall be interpreted in accordance with and governed by the laws of tI1e State of Mi�7nesota, (b) The words "herein" and "hereof" and ��ords of similar import, v��ithout reference to any pacticular section of• subdivision refer to this Agreement as a whole rather than any particular section or subdivision hereoi: (�) References herein to any particular section or subdivision hereof are to the secti�n or subdivision of this Agi•eement as originally executed. (d) Any titles of the sevet�al parts, arlicles and sections of diis Agreement are i�lsei•ted for con��enience and reference only aud shall be disregarded in construin� or intet•preting any of 1lS ])1'OVISIOIIS. ARTICLE II. REPRESENTATIONS AND UNDERTAKINGS Section 2e1 Bj� the Bu �er. The Buyer makes [he followi�� representations and undertalcings: (a) The Buyer has the legal authority and power to enter into this Agreement and has duly authorized the execution, delivety and perfornlance of Chis Agreement; (b) The Buyer has the necessary equity capital or will obtain coinniitments for financing necessa�y for construetion of the Impi•ovements; � (c) The Buyel• will construct the Improvements in accordance with the tei•tns of this Agreement and all ]ocal, state and federal laws and regulations; (d) The Buyer will obtain, in a timely tnanner, all required permits, licenses and approvals, and will ineet, in a tiinely manner, the requireuients of all local, state and federal laws and regulations which must be obtained or met before the Lnprovements may be constructed; aud (e) The plans for the Iniprovements have been prepared by a qualified draftsperson or architect. (t) The Buyer intends to reside at the Property following completion of construction of the Improvements and is not acquiring the Property for the purpase of resale or speculation. (g) The Buyer has read and understands the Cuidelines and agrees to be bound by them. 41(1,51%v2 JAL RC 125-65 � Section 2.2 I3y the ��RA. Tl�e HR� makes the followiil�representati��ns as ehe basis for tlle undertaking on its part herein coutained: �� (a) The HRA is authoi•ized by law to entel• into this Agr•eement and Co cat•ry out its obligations hereunder; aud (b) The HRA will, in a timely mannei•, subject to all notification requirements, i•eview and act upon all submittals and applications of Che Buyer and will cooperate with tlie efforts of I3uyer to secure the grantiug of any ��ei•mit, lice�lse, or other �pproval required to allow the construction of the In�pl•ovenlents. � AIt'I'ICLI: III. ACQUISITION OF PROPERTY; CONVEYANCE TO �3UYER Section 3.1 Purchase of Propertv bv_ Buyer. The Buyer has, or will utilize its best effor[s to enter into a binding agreement to purchase the Property. If no binding purchase agreement is entered into within 30 days fi•arn the date of this Agreement, eithet• the HRA or the Buyer may declare this Agreement null and void, and the parties will thereby he released from any further obligation hereundet•. Section 3.2 Closing. Closing on the Property must take �lace on or before rebruary 1, 2016 or such other date as may be agreed to by the Buyer and lhe HRA in writing. AR`I'ICLE IV. CONSTRUCTION OF IMPROVEIVIF,NTS Section 4.1. Construction of Imnrovements. The Buyer shall submit to the HRA the Construction Plans for approval by the HRA staff. The Buyer shall cause the Iuiprovements to be constructed on the Propei•ty in accordance with the Guidelines and the Construction Plans, shall cause the Imp�•ovements to meet oi•exceed the Minimum Market Value, and shall maintait�, preser�je and keep the Improvements in good repair and condilion. Section 4.�, Buildin Plans. No building permit will be issued by the City unless the building plans are in conforiliity with the Guidelines contained in Exhibit A, the Construction Plans, the required Minimum Market Value, other requirements containecl in this Agreement, and all local, state and federal regulations. The Buyer shall provide t:he HRA with a set of buildin� plans to be used iii connection with any application for a building permit, The HRA shall, within 25 days of receipt of the building plans submitted in application for a building permit, review such building plans to determine whether the foregoing requir•ements have been met. If the HIZA deter�nines s�ich building plans to be deficiet�t, it sh�ll iiotify the Buyer in writing stating the deficiencies and the steps necessary for co17•ection. Issuance of the building permit by the City shall be a conclusive determination that lhe buildin� plans have been approved al�d shall satisfy the provisions of'this S�ction 4.2. 4 410S17a2 JA}i RC12S-65 Seetion 4.3 Seliedule of Consh�uction. Subject to Unavoidable Delays, coaistruction of the Improven�ents shall be completed prior tc� July 1, 20l 6. All constri�iction shall be in confoi•mity with the approved Construction Plans a��d dle Guideliiles. Pei•iodically during construction the T3uyer shall make reports in such detail as may reasonably be requested by the HRA conceri�ing tt�e actual progress of construction. If at any time prior to completion of construction the HRA has cause to believe that the Buyer will be unable to conlplete construction of the Improvements in the time pei°nliCted by this Section 4.3, it may notify the Buyer and demand assurances fi•om the Buyet� regarding the Buyer's construction schedule. IF such assuraiices are not f�rthcomi�ig or ai�e deemed by the HRA at its sole discretioii to be inadequate, tlie HRA �nay declare an Event of'Default and may avail itseli'of any oi'the remedies s��ecified i�l Section 8.2 of this A�;reement. Section 4.4 Certificate of' Co�nutetion. Promptly after notificatio�l by the ]3uye1• of completion of construction of the Improvements, the I�RA shall inspect the conslruction to detei•mine whet:her• the Impi•ovements have been completed in accordance with the C.onstruction Plax�s and the teruis of this Agreement, including the date of the c�mpletion thereof. In the eve�it that the HRA is satisfied with the construction, the HRA sha11 furnisll the Buyer witll a Certificate of Completion in the form atiached hereto as I xhibit B. Such certification by the HRA shall be a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement with respect to the obligation of the Buyer to consti•uct the Impi•ovements. If the HRA shall refuse �r fail to provide certification in accordance with the provisions of this 5ection 4.4, the HRA shall within l5 days of such natification provide the Buyei• with a writCen statement, indicating in adequate detail in what respects the Buyer has failed to complete the Improvements in accordance with the provisions of this Agreement i�ecessary, in tlie opinion of the HRA, f�r the Iiuyet�to take or perform in order lo obt:ain such certification. Section 4.5 Failure to Construct. I�� the event that constructioii of the Improvements is not cc�mpleted 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. REDEVELOPIVIEI�iT ASSISTANCE Sectiou S.1 Redevelopment Credit. As consideration for the I3uyer's covenant to consti•uct the Improvements, and subject to all of the conditions of this Agreement, the HRA agrees to provide the Buyer with a Redevelopment Credit in the amount of$50,000. lf the Buyer is in compliance with its obligations under this Agreement, the Redevelopment Credit will be paid to th� Buyer in one installment on the date of the issuance of a Certificate of Completion evidencing that the Improvements have been completed, including the landscaping. ARTICI,E VI. 5 410517v2 JAE KC I 25-C,5 FINANCING Section 6.1 Financlllg. Within ZO days of the date of execution of this Agreement, the Buyer shall submit to the HRA evidence of financing for the In�pj•ovements in compliance with the provisions of Section 2.1(b) of �his Agreement, If the HRA finds tl�iat the financing is adequate in amounr to provide fot• the construction of the. Improvements, the HRA shall noeify the Buyer of its appt•ovaL If the HRA rejects t:he evidence of fivaucing as inadequate, the Buyer shall have 30 days or such additional period of time as the Buyer may reasonably reyuire from the date of such notification to submit evidence of financing satisfactory to the I-IRA. If the Buyer fails to submit such evidence or fails to use due diligence in pursuing financing, the HRA may tercninate this Agreement and both parties shall be released fi•om any further obligation or liabiliCy hereunder, except for the HRA's remedies pursuant to Section 4.5 of this Agceement. Section 6.2 Copj� of Notice of Default to Lender. Whenever the HRA shall deliver any notice or demand to the Buyer with respect to any E��ent of llefault by the Buyer in its obligations or cov�;nants under this Agreement, the HRA shall at the same li�ne forward a copy of such notice or demand to each I�older of any mortgage at the last address of such holder shown in the records of the HRA. ARTICLL VII. PRUHII3ITIONS A(�AINST ASSIGNMENT AND TR�NSFER Sectiou 7.1 Renresentation as to Redevelopment, The Buyer represents and agrees that its undertakings pursuant to the Agreement, are for the puc•pose af development of the Property and not for speculation in land holdin�;. The Buyer further recognizes that, in view of the importance of the Developn�ent to the general welfare of Richfield aud the substantial financing and other public aids that have been made available by the HRA for the purpose of making lhe Development possible, tile qualificalion and identity of the Buyer are oi'particular coucern to the HRA. The Buyer further recognizes that it is because of such qualifications and � identiCy that the HRA is entei•ing into this Agree�nent, and, in so doing, is furthei• willing to rely on the representations and undertakings of the Buyer for the faithful performance of all undertalcings and covenants agreed by the Buyer to be performed. Sectiou 7.2 Prohibition A�ainst Transf'er of I'rouertv and Assignment of �reernent. For the reasons set out in Section 7.1 of this Agreement, the Buyer represents and agrees that prior to the issuance of the Certificate of Completion by the HRA: (a) Except only by way of security for, and only for the purpose of obtaining financing necessary to enable the Buyer or any successor in interest to the Property, or auy part thereof, to perform its obligations with respect to the Development under this 1lgreement, and any other purpose authorized by this A�reement, the Buyer, except as sU authorized, has not made or created, and that ie will not malce ol• create, or suffer to be made or created, any total or par•tial sale, assignment, conveyance, or any trust in respect to this Agr•eement or the Pi•oper•ty ot• E 410517v2.lAFi RC12S-65 any part tliei•eof or any intei•est tlierein, o�• any co»tr•act oi• agreerneni to do any of tl�e satue, witllout [he pi•ior written approval of the HRA. AR1'ICLE VIII. �VENTS OF DEFALILT Seetiou 8e1 Events of Default Defined, The following shall be deemed �vents of Default under this Agreement and Che term sl�all mean, when�ver it is used in this Agreetnent, unless the context otherwise provides, any o�le or moi•e of the following events: (a) Failure by the Buyer to pay when due the payments required to be paid or secured under• any provision of this Agreement; (b) Failure by the Buyer to observe and substantially pei•foi•m any covenant, condition, obligation or agreement on its part Co be observed or perforiiied hereunder, including the time for such perfoi•mance; (c) If the Buyer shall admit in writing its inability to pay its debt� genei•ally as they become due, or shall file a petition in bankruptcy, or shall make an assignment for the benefit of ils creditors, or shall consent to the appoint.ment of a receiver of itself or of the whote or any substantial part of the Property; (d) If the Buyer, on a petitic�n in bankruptcy filed against it, be adjudicated as bankrupt, or a �ourC af compeCent jurisdiction shall enter an order or decree appointing, without the consent of the Buyer•, a receiver of the Buyer or of the whole or substantially all of its property, or approve a petition filed against the Buyer seeking reorganization or airangement of the Buyer under t.he federal banlcruptcy laws, and such adjudication, order or decree shall not be vacated or set aside or stayeci within 60 days from the date of entry thereof; or (e) If the Buyer is in default under any mortgage recorded against the Property and has not entered into a work-out agreement with the holder of the rnortgage. Section 8.2 Remedies on Default. Whenevei• any Event of Default occurs, the HRA may, in addition to any other remedies or i•ighCs given the HRA under this Agreement, take an�� one oi• more of the following actions following written notice by the HRA to the Buyer as provided in Section 9.3 of this Agreement: (a) Suspend its perfortnance under this Agreement until it receives assurances from the Buyer, deemed reasonably adequate by the HRA, that the Buyer will cure its default and continue its performance under this Agreement; (b) Cancel or rescind this Agreement; � (c) Witl�hold the Certificate of Completion; or 410S17v2 J!�F,RC12S-65 7 (d) Take whalever actio» at law or in equity may appear necessaly ar desirable to t:he HRA to enforce l�erfo�•mance and observance of an�� obligation, agreement, or covenant of the I3uyer under• this Agr•eement; provided, however, that any exercise by the HRA of its rights oi� remedies hereunder shall always be subject to and limited by, and shall not defeat, render invalid oi• limit iu auy way (a) the lieu of auy nlortgage and (b) any ri�hts or interesk provided in this Agi•eement for the protection of the holders of a moi•tgage; and provided further that should any mortgagee succeed by foreclosure of the m�riga�e or deed in lieu thereof to the Buyer's interest in the Propei•ty, it shall, notwithstanding the foregoin�, be obligated to perform tlle obligations of' the Buyer under this Agreement to the extent that the same have not therefore been performed by the Buyer. Section 8.3 No Remed Lxclusive. No remed}�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 ve in additi�n to every other remedy gi��en uncier this A�reement or now or hereafter existin� at law or it� equity or by stattite. No delay or omission to exercise any right or power acct•uing upoii any default shal] impair any such right o�• power or shall be constiued to be a waiver thereoi', but any such i•ight and power may be exercised fi�o�n time to time and as aften as may be deeined expedient. In orc�er to entitle the HRA or the Buyer 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 8.4 No Additional Waiver Imr�lied bv One VVaivei°. ln the event of the occuri•ence oi'any Event of Default by eithei• party, which �vent of Default is thereafter waived by the other party, such waiver shall be limited to the particular Event of Default so waived and shall �iot be deemed to waive any other concurrent, previous or subsequent Event of DefaulC. ARTICLE IX. ADDITIOI�'AL PROVISIONS Section 9el Confiict of Interests; Representatives Not Individuallv I,iable. .No HRA officer who is author�zed to take part in any manner in making this Agreement in his or her official capacity shall voluntarily have a personal financial intei•est in this Agi•eement or benefit financially there fi•om. No member, official, or em��loyee of the HRA shall be personally liable ro the Buyer, or any successor in interest, for any Event of Default by the HRA or for any amount which iliay become due to the Buyer or successor or on any obligations under the terms of this Agreement. Section 9.2 Non-Dfscrimination. The provisions of Minnesota Statutes Section 181.59, which i•elate ro civil rights and non-discrimination, and any affit•mative action program of the City shall be considered a part of this Agreement and binding on the Buyer as though f«lly set forkh herein. 5ection 9.3 �totices and llemands. Excel�t as ot(�erwise expressly provided in this Agreement, a notice, ciemand or other communication uncler this Agreement by either party to the aios»,,z,�nr rzci2s-c�s �' othei• sllall be sufficie�illy given or delivei•ed if it is sent by mail, postage prepar•ed, return receipt i•equested ol•delivei•ed petso�lally; (a) As to tl�e HRA: � Richfield I-3RA Attn: Housing Specialist 6700 Portiand Avenue South Richfield, �.�N 5.5423 (b) As to tlie�3uyer•: Endres Custom Homes, Inc. 15564 Dunberiy Way Apple Valley, MN_5S 124 or at such other addi•ess witli respect to eitller such party as that_party may, fi•om time to time, designate in writing and forward to the other as provided in tliis Section 9.3. Sectioxx 9.4 Counterparts. T'his Agreement may be simultaneously executed in any number of counterparts, all of which shall constitute one and the same instrument. 4105 l 7v2 JAF,i2C I 25-65 � IN WITNESS WHEREpF, tl�e parties have caused this Agreement to be duly executed as of the day and year fitst above wriite». THE HUUSING AND REDEVI+:I,OPMENI' ° AUTHORITY IN ANb �OR TgE CITY OF RTCI�FILLD,iV1INNF,SOTA By_ Its Chairpersoii � �-� By-------- Its �xecutive Director � STATT Or MINNESOTA ) COUNTY UF HENNF,PIN � SS The foregoing instrument was acknowIedged before me this --_ , 2015, b day of y --- , the Chairpei•son of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA), a public body coi�orate and politic under the laws of Minnesota, on behalf of the HRA. . Notary Public � �� - —y— STATE Or MINNESOTA ) COUNTY OF HENNI:PIN } SS The foregoing instrument was acknowledged before me this ____day of____ 2015, by Steven L. Devich, the Executive Director of the Housing and Redevelopmeut Authority it� and for the City of Richfield, Minnesota (HRA), a public body corporate and politic under the laws of Minnesota, on behalf of the HRA. Notary Public --_-�__------- �-�� aiosi��z JnN aci zs-�s 10 BUYI.K :.s----��,�-�� .. "/'� � r;- �'' __.__ ---��:�u�.�---------- STATE OF MINNESOTA ) ) SS COUN'I'Y 4F��'��,) � The fo�going instiument was acknawleci�ed before me this ��i�� da of Y G +f�'��'j 17�i�-- > 20�, hy G(�`� �11C�f'�,�_ � —, the president of Ezidres �'ustom Homes, Inc., a corporation under the laws af Minnesota, on be}lalf of th�State. . - . � "''�r"�.. � L �'�G�LC..��l.d��`�-- ��..,� KA"I"HERINE M. Notary Public � 4' AITCHISON - NOTARY F'UBIJC�MINNESOTA q ��;• : MyCommissionExpiresJanuary31,2017 V � 1 1 4 tO5 t h�3.r-1Fi RC t 25_t;; EXHIBIT A I;tICHF'I�L.b ��DISGOV��p F'I�OC�D►I�RAL C;UIDEt�ItV�5 ��v��oPnn�rv-r crz��ir �RO��Ann I�evised: July 25, 2011 A-1 410517v2 JAE RC125-(5 PROCRAM O�J�C7'IV�S........................................ ....................................................................................3 B�FINI�'ION�...........................................e........... .........................................................................................3 PRO�RAM BA�IC�........... ................................................................................................o....................3 APPLICATION REQUIREM��TS............................. ............................................................................ ..� S�CUF2INC A SIT�................................ .......................................................................................................5 I�ROP�I2TY�VALt1A,1'I�N Gf�NSID�RATIONS ANI� PFt�CEDUR�S......................................................5 j°l�US��SlCN ANa Sl7'��V��IN�fll7 F��QUlR�lI�1�NT�...................................... ...e................o...6 NEW WOME S7'ANDAR[�5............... ............................................................................................................6 SIT�STANI�AI��S..........o....................... ........... ................... ...............................................................6 �ONSTRUCTION R�(�2UIR�M�NTS...................... ...........................................................................o.........6 G�NERAL� STANDARD� ......................... .........................e...........................................a...........o..................7 GREEN COMIVIUNI�'Y CO(dC��Ta............................................... ....e...................................................e.....8 �IS�URSEIVI�N'�OF' �'UNDS................. ....................................................................................................o� SOLICI7'ATION�F NEW D�V�LOPNiEN'f P�f3PO�ALS....................o.... ..............................................e.9 G�NERAL PF2�Gf2AnN AIOARFC�TIN�....................... .................................................................o......9 DATA F'�tIVACY.................... ..........................................................................e.......................a........a............9 B-2 410517��2 JAti RC I ZS-65 1'his document has been developed as a guidance taol for program adrninistration. It should not be interpreted as constituting any contractual agreement or liability by the City or Housing and FZedevelopment Authority(HRA). I. �roqr�m Obiectives • To remove substandard, functionally obsolete housing nn scattered sites throughout the city with new, higher-valued housing o To eliminat� the blighting influence of substandard housing, thus improving residential neighborhaods. • 7o alleviate the shortage of housing choices for families. • To facilitate "Market Rate Initiatives"which include: o Larger three-to four-bedroom, owner-occupied homes designed far families These objectives will be achieved through the acquisition of properfy by private �uyer� and the development of newly constructed homes. II. Definitions [3uyer:An individual(s)who will build, own and occupy a new single-family home in Richfield. The f�uyer will occupy the property and not offer it for rent. 7he Buyer may not also functian as the Builder on a Richfield RediSCOVered project. 7'he Buyer and Builder•must be unrelated separate legal entities. A speculative projecf by a Buyer may be considered if all other program requirements can be met. However, neither the �uyer, the Buyer's f3uilder or Builder's subcontractors, or the Builder's realty agents may occupy or purchase the property. Buyers, unless iicensed in the trade specified, may not put any sweat equity intn tl�e construction of the foundation, wall/roof framing, shingling, exterior work, electrical/plumbing/HVAC systems or interior carpentry. Builder. Contractor who has signed contract with the Buyer to build a single-family home on the lot identified in the application. Contract for Private Development: A contract between the Hf�A and the Buyer or F3uilder 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 buifding features. HRA: Housing and Redevelopment Authority in and for the City of Richfield. Seller. Owner of property identified as eligible by the NRA based on condition, size and marketability. Redevelopment Credit: Ta offset costs of acquisition and demolition, a redevelopmenY credit of$50,000 is available from the HRA for a �uyer who acquires the property direcfly from the seller for redevelopment. III. Proe�ram �asics • Program is first-come, first-serve, subject to funding availability. e �uyer purchases property, hires builder to demolish existing structures and constructs a new single-family home in conformance with program requirements. • A$50,Q00 Redevelopment Credit is available per completed property. • Projects must be completed within one year af HRA appr-oval of the project. B-3 �f0517v2 JAF.RC125-GS IV.Ap�tic�ti�n F2epuirements The following must be submitted for appiication to the program: 1. $525 application fee An application fee, in the form of a certified cashier's check made out to the Richfield HRA, must be paid at the time of app�ication. This fee is non-refundable. 2. Project Information Sheet 3. Purchase agreement l"he Buyer must present a valid purchase agreement for the lot it proposes to redevelop. Yhe closing must be scheduled after the date the �iRA approves the Contract. 4. �lueprints The layout of all levels, including basement and unfinished space, must be provided. 5. Elevations Flevations of all four sides of the house, including view of garage shall k�e provided. 6. Site plan The site plan shall indicate the location of the new hnuse,walkways and garage. 7. Landscaping plan A �andscaping plan may be hand-drawn by the applicants, but niust indicate the location and type of trees, shrubbery, flowers and landscaping materials(e.g, rocks, mulch). 7'he entire grounds shall be landscaped and be aesthetically pleasing in all seasons. Land fo►•ms and plant materials shall be used to define the site ai7d blend neatly with adjoining properties. Specific lot line blending requirements may be required, as appropriate, for specific sites. 8. Green Cnmmunity Concepts Plan 7"he plan should indicate what Green Community Concepts will be incorporated into the project. 9. Detail of construction materials to be used on the project. 10. Construction timeline Construction must bP completed with one year of the purchase of the property. 11. Signed contract with �uilder 12. Financial capability statement a. A statem�nt from a financial institution indicating willingness, with standard contingencies, to provide sufficient construction capital to complete the project. 13. Builder References a. Five previous customers b. Three major suppliers, one being the construction supplier c. �uilding 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. 15. Proaf of sufficient worker's compensation insurance coverage by the Builder. 16. Written warranty program 13-4 410517�?.JAE RC12S-65 a. To be provided to the �uyer, which guarantees at a minimum, warranted repairs as required by Minn�sota State Statute. V. S�curina a Site Participants identify a property on their own or from a list of Richfield Reciiscovered-eligible properties provided by HF�A staff. If the property has not already heen qualified for the pragram, it must be evaluated for substandardness or market obsolescence. Upon request of a prospective �uyer, HRA staff may research the property, and arrange for a "Substandard �valuation" to be conducted. An evaluator will inspect the interior for substandard qualification. The Buyer is responsible for negotiating with the Seller on a purchase price. Once a purchase agreement between the Selfer and Buyer has been signed, the guyer should submit an application for•m and required su�porting documents. Only when HRA staff has received a complete application, can the $50,000 Redevelopment Credit be reserved. The reservation of funds is not an approval by the hIRA. All applications must be brought to the HRA at a regularly-scheduled meeting for approval. VI. Propertv Evaluation Considerations and Procedure§ Properties with the lowest market values, poorest visibifity, and/or a histary of code violations, will be considered first for the program. To be eligible for the Richfield Rediscovered program, a house must be structurally substandard and m�et at least of one of the criteria in Criteria A and all of Criteria �, �riteria A � Obsolete deslgn for block and area in which it is located. � Deteriorated to the point that it has caused blight to other ad}oining properties. � Detrimental to the health or safety of abutting properties. • Less than $140,000 in value, as determined by the City of Richfield Assessing Department. Criteria� � Site can be developed with a new home within city code requirements, including conformance with the Zoning Code and the Comprehiensive Plan • Property does not cause negative impact on other redevelopment projects. Redevelopment projects may include: o Established commercial redevelopment areas o Right-of-way itmprovernent projects such as I-494, I-35W, Crosstown Highway 62, TH 77 and 66 Street o Negative airport noise zones o Stormwater/flood prevention improvement projects o Other, as determined by the HRA At the request of an interested Buyer, staff will research the property and if if is believed that the property may qualify for the Richfield Rediscovered program, a "Substandard �valuation" will be arranged. An evaluator will inspect the interior for substandard qualification. If a property meets the substandard test during tf�e independent "5ubstandard Evaluation", application procedures can continue. If tl�e substandard test cannot be met, the property cannot be considered for the Richfield Rediscovered program. B-5 410517v2 JAE RC 125-65 At the discretion of staff, properties over 50 years old may also be required to be eva�uated for historicai significance through the Minnesota Historical Society. VII. House Desian and Site bevelopment 12epuirements Housing design is a critical element of the program. Siding materials, exterior fagade 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 criteria were created to ensure that the homes built on the identified lots blend in with the §urrounding neighborhood and respond to the specific concerns of the HRA. All new houses huilt under the Richfield Rediscovered Program must meet the requirements of the City's Zoning Code and additional criteria, as listed in this document. The development of al� sites shall meet the development criteria listed below, as reviewed and approved by the WRA. 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. A. N�w Wome Standards 1. Existing buildings must be demolished. If an existing garage is in good condition, it may be retained upon review by HRA staff and the Building Official. 2. New dwelling must be owner-occupied and single-family. 3. Three finished bedrooms are required. 4. Two finished bathrooms are required. 5. Two-car garage is required. 6. A full basement is r•equired, 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. �. Site Standards 1. After construction, the site must be fully landscaped, including plantings around the foundation. The entire grounds shall be landscaped and be aesthetically 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 me�t the "Landscaping and Screening Requirement§" in the City's Zoning Code under Section 544.03, Subd.4, General landsca inq requirements and Subd. 5, Residential sites. 1"he code is available on the City's website: http:/1www.cityofrichfield.org. 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 for specific sites. Construction and the finished structure must not have detrimental impact on storm water drainage patterns in the neighborhood. 4. All air conditioning units must be located in the rear yard of the house or as approved by the HRA. C. Construction Requirement� aiasi��-z.inh�tcizs-r�s B-6 1. Existing trees must be protected during construction. A tree wrap with board reinforcements shall be sued on trees directly adjacent to active grading and construction area. Damaged or destroyed trees must be replaced. 2. The construction site, neighboring properties and adjacent public streets shall be ke�t free of construction dehris at all times. 3. No construction workers, construction equipment or construction material shall encroach upon neighboring properties. 4. The property sliall have a new sanitary service line installed to the city sanitary sewer main consisting of schedule 40 PVC or equivalenf. If there is an existing 6"sewer stub at the property line, if must be lined with 4"schedule 40 PVC or equivalent to the city's sanitary main, and it must include a "donuY'at the end wiYh cernent. The line must be televised after installation to ensure the fntlowing: 1. There are no obstructions in the line. 2. The PVC liner is not protruding into the city's sanitary sewer main line. b. General StandarcJs 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. Fxterior 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 should have metal valleys and not be woven. 4. Unit heighf 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 pfacement, architectural detail, door design and utilization and design of windows. Frontnloaded 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 acc�ss the alley. 7. All building plans must have been prepared in consultation with an architect or quafified draftsperson. All requirements by the Building Inspections Division musf be met. 8. All Richfield Rediscovered houses must meet or exceed Minnesata Energy Code requirements. 9. All n�w homes should 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 current sound attenuation huilding standards for properties located in 65-69 and 70-I4 Ldn zones. 10. If a variance is required to construct the proposed development, the HRA may, at its sole discrefiion, choose to reject the a�plication. }3-7 410517v2 JAE RC125-65 11. If the HRA accepts an application that needs a variance(s), sale of the property will be contingent upon the applicant obtaining the neces�ary variance(s). The Appiicant is responsible for appiying for the variance(s)at its own expense. �. Green Communitv Concepts Priority will be given to prnjects incorporating the green community concepts listed below. Any concepts the applicant would like considered during the application process should be explained in a cover•letter submitted with the application. 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 indaor environmental quality. Use non-toxic materials, ventilation and exhaust systems, and moisture control products and systerns. 4. Use environmentally-preferable materials and resources. Use locally-produced, salvaged andlor 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. When demolition occurs, consider the sorting and recycling of leftover materials and debris. VIII. �itv Review Procedure 1. Applicant reviews proposed project with HRA staff befnre plans are finalized. 2. HRA Staff will review application to ensure conformance with House Design and Site Development Requirements. 3. HRA staff prepares a report and recommendation for the HRA. 4. A Contract for Private Redevelopment is reviewed and signed by applicants in advance of the HRA meeting. 5. HRA reviews application and takes action at the I-IRA meeting. 6. ff approved,the Contract for Private Redevelopment is executed by the I-iRA. 7. Upon approval by the HRA, the applicant is responsible far acquiring the necessary building and demolition permits with the City of Richfield Inspections Department. If changes are required, the Buyer must notify HRA staff. IX. Disbursement of Funds Approved projects are eligible for a $50,000 Redevelopment Credit. The Creciit will be disbursed upon completion of the project (including landscaping) and the issuance of a Certificate of Completion by the �uilding Official. B-� 410S17v2 JAE RC175-65 The Buyer may also request the Reclevelopment Credit to be issued in three instaliments. The first instaliment of $20,000 would be issued at the time of closing on the property, the second for $20,000 when permits are pulled and the third for$10,000 when the project has been completed and a Certificate of Com�letian has been issued by fhe �uilding Official. A mortgage will be filed and a lien puf on the house until the project has been completed. Filing fees are the responsibility of the applicant. The disbursement uf funds will be autlined in the Contract for Private Redevelopment, to be executed by the HRA and the Buyer. X.Shcicitation of New Development t�roposals The HRA will advertise the Richfield Redevelopment program in publications or newspapers, by direct mail, or other methods as deemed appropriate, to solicit interest. When the I-�RA has property information, it will provide the address of the property, lot dimensions and contact information of the seller. Interested parties may contact the owners directly. All purchase negotiations and timing issues must be resolved between the parties. Properties identified hy the applicant may also qualify. The HRA wili review each one on a case-by-case ba�is. A program information package will be available upon request to interested Buyers. The information packet will include the following: • Richfield Rediscovered Procedural Guidelines • Sample Contract for Private f�edevelopment • Application Cover Sheet � Project Information Sheet � Lot List XI. General Proaram Marketin� Richfield Rediscovered program marketing is entirely at the discretion �f the HRA. It may include the following: 1. Buyer Solicitation. The HRA may market the program to potentia� Buyers through promotional articles, direct mail, the Internet, or other methods as deemed appropriafe. Buyers may be any financially capable individual or family, including first-time buyers, move-up buyers or empiy- nesters. 2. Public Promotion. �. The hIRA 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 af Homes Falf Showcase and Spring Preview may also accomplish this. C. . XIL Data F�rivacv All information secured through the program is subject to the Data Privacy Act. a i os i i��2�ni:Kc�z5-�s B-9 EXHIBIT� FORI1� 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 Nousin� ancl Reci�veloprnent Authority in and for• the City of � Ricl�field, Minnesota and dat�ed filed _� as Document No. �_ _ with i•espect to Cl�e construction of Che approved construction plans at ___ le all described as __ ' � y _ , and is i•eleased and foi•ever dischai•ged from its obligations under such Conlract. DATED: TI��E HOL7SING AND IZEDEV�LOPMENT AU'THORITY IN AND FOR T�-IE CIT� RICHFIELll By: � Its: Chairperson By: Its: Fxecutive Directoi• ` S'TATE OF MINIVESOTA ) ) SS COUNTY OF HFNNEPiN ) The foregoing instrument was acknowledged before me this day of ° 2�---� bY � and _ the Chairperson and 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 coiporate and politic. Notaiy Public �` � This ilastrument was drafted by: Housing and Redevelopinent Authority in and for the C:ity of Richfield 6700 Portland Avenue South IZichfield, MN 55423 612-861-9760 B-1 4105(7v2 JAE RC125-65 ----------- --- -- ---------------- --- --------� ---------- - --------------------------------------------------------------------------------------- --------------- ---------------- f ------------------------ -------------- e � --- ------------------------ -------------------------------- - ------ - ..� i-_-__ �, L1 UT PRG E �'� , - - �� LADEL TITI.E DESGRIPTIQN GOMM�NTS �i ,- � � � . ��, P-t +PROJEGTOVERVIEW � 1^ -' � t� . ...__"'"'"'"__' CCi+h:ERM.ATE' 12 _ � — _ ur'�" ,' � i �\��' i �A 6 i1 \� 6 _1 � .,_ __.� � � .—_'___'—___"__" _ * '"__'__"_'_.___ � .. � - - ------- ASPHALT SHINGLES � � --- -��' 6:12 -- '-------- I -- ,%� ------�--- �\_J____,_SECOND LEVEL CLG�,L z . �' O -- . -_ � �� - -- -'' �--- — �r�_ . - _--- -- �� -- a _ _- a � _ _ - ' - - - - - - -- - - --- - - - - - - � - — - - - - - - - - - -- - - - - - - Q _- .- ---. -- �--� - - - --LPSIDWG- - __ ..--- - � - � -- - - - --- __ - - _ _ _J -_ - _ - = __-= � - - -�� --- _ _.__ — .. ___ _ _ _ . __ . _ 4 O --�- --- �- — ---� � -- - /�i/ _ _ ------- — — --- — - ~ — — — — —- J- O�> I ,2 _ _ _ -- ASPHALT---i1 --- 4 � 4 .�� `n a - -- -�- - 4:12 /-SHINGLES v x — ^ > - -- -��-- - - -- - - - - - _.-. _ ..-- ---- _ _ _ __ _-�____. _ "_'_ _ ._ '___' _ '_ ___ C . ` _- . - -_ _ _- � . _ - _ -- . . . . . ___ " _ ___ _ _ '- ^ _ _ _- _ _'_ _ __ _ .. � . _ "_ _ . _ _" __ __ _. ___ . 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I —_ .4� .w"..",'°,''°.:,:.'� ' , . - __.__-� � _ .::� i --__- i. —� _ B � - .,� ,p�� These Num6ers are contrived from this formula:7ota1 Ventilation=A2 x square fee[of Condihoned Space+(IS x(number of bedrooms ( � i«n.'� ta ..-r.-.�i:=,^6.r �ArE: -.. ,.. - __- � .:<��..., � : � +1)) � _ _ - - - - _ $/S/Z ' � - '- — �i Total Ventilation=.02 x 3848+(i5x(A i-1) - ' '� I � f Total VentilaCion=151 cfm �14 �� - � The equation for Con[inuous Ventilatiun:Total Ventilation/2 . DORMER �-- r . _ ' - - I .� 15!/2=75.SCfm �� , - ��. .�.�.. J - -� I `_ �� Continuous Venkilation=76 I SCALE: �I .��.,�r,E �-,�s-`�7=-��.�--�--*�r�-�t __ - --�. --- -�`��-�- .i �..�1 �, - T o t a l h e a t n e e d e d i n c l u d i n g v e n t i l a t i p n 8 0,0 0 0 b t u s , t Total moling needed in<ludiny veneilation 46,11H bti�s ------- -_ _-_-I � ____cROSS secriorv ____� �SH EET: :..f�. 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