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10-07-96 agenda`~) ~-'~~ CITY OF RICHFIELD, MINNESOTA MONDAY, OCTOBER 7, 1996 SPECIAL HOUSING AND REDEVELOPMENT AUTHORITY MEETING COUNCIL CHAMBERS 6:15 P.M. AGENDA CALL TO ORDER CONSIDERATION OF MARKETING INITIATIVES TO NEW FORD TOWN AND RICH ACRES RESIDENTS HRA LETTER N0.63 2. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING SALE OF 2513 WEST 70TH STREET TO VARIETY HOMES, INC. FOR • RICHFIELD REDISCOVERED SINGLE FAMILY HOME DEVELOPMENT HRA LETTER N0.64 3. CONSIDERATION OF AUTHORIZATION OF SUBORDINATION AGREEMENT RELATING TO HRA INTEREST IN PHASE II, CSM SHOPS AT LYNDALE TO FIRST BANK HRA LETTER N0.65 4. CONSIDERATION OF REQUEST TO EXECUTE SUBORDINATION, NON- DISTURBANCE AND ATTORNMENT AGREEMENT. FOR CSM AND BORDERS, INC., SHOPS AT LYNDALE, PHASE II HRA LETTER NO. 66 5. CONSIDERATION OF MODIFICATION OF TRANSFORMATION HOMES PROGRAM HRA LETTER N0.67 ADJOURNMENT ... Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the Administrative Services Director at 861-9702. HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 6~ Agenda October 7, 1996 Issue Statement: Consideration of modification of the Transformation Homes Program. Background: The HRA's Transformation Homes Program provides deferred loans to homeowners who implement $50,000 to $100,000 remodeling projects. The loan equals 15 percent of the remodeling contract, accrues no interest, requires no monthly payment, and has a 30 year term. In the past two years, 15 homes have been remodeled with this program. The average remodeling contract has been $67,000. The average appraised property value upon project completion approximates $150,000. The Richfield Rediscovered New. Construction Program has been the catalyst for all of the HRA's remodeling programs that have followed. Proceeds of new construction vacant lot sales provide the funds for transformation initiatives. New construction activities will remove 150 to 200 substandard and economically obsolete homes over a period of years. However, transformation and remodeling activities have the potential to repair, remodel, improve and invest in more than 9,000 existing single family homes. The greatest opportunity to diversify the housing stock lies with existing homes. Staff continually explores new program opportunities which would help with this diversification. Three program revisions are proposed for the Transformation Homes Program. A detailed program description accompanies this letter. The proposed revisions would: • stimulate additional remodeling; • further diversify housing values and styles; • continue the HRA's role in keeping Richfield's housing market competitive with other suburbs; and • improve Richfield's livability in response to findings by the Metropolitan Council that the existing housing lacks a diversity in value and style. The HRA discussed the revisions at the September 16, 1996 board meeting and continued the discussion to the October 7, 1996 special meeting. Steve Quam and Dave Sumnicht of Quam, Sumnicht, and Associates (QSA) are attending the October 7, 1996 meeting to provide input concerning the proposed transformation grant. Recommended Motion: Authorize the following changes to the Transformation Program: • 1. Provide 15 percent deferred loans to homeowners above a $100,000 remodeling contract. 2. Provide a 10 percent deferred loan for remodeling contracts of $30,000 to $50,000. 3. Provide a grant equal to 10 percent of the purchase/remodel cost when a property value at project completion will exceed $200,000. Basis of Recommendation: 1. The Transformation Program is successful. However, in the two and one-half years the program has been administered, no remodeler has proposed a purchase/remodel transformation project. 2. Program modifications will encourage more transformation. 3. Three remodeling contracts near or above $100,000 have occurred in the past year. Sufficient resources are available to support larger remodeling initiatives. 4. The HRA's lender partner Norwest Bank has indicated that incentive loans for. remodeling in the $30,000 to $50,000 range will stimulate more remodeling. 5. Purchase/remodel projects with end property values in excess of $200,000 need to occur to encourage greater house price diversity style. Two Richfield Rediscovered new homes have exceeded the $200,000 property value. However, the market for remodeling above this value has not been sufficiently tested. 6. An equity contribution, the appreciating value of the property, makes it possible for a homeowner to undertake major remodeling. Equity helps to minimize the impact when remodeling costs exceed remodeling value by up to 30 percent. The purchase/remodel builder does not have this equity advantage. 7. An equity contribution by the HRA of 10 percent, makes possible a project presently being evaluated by QSA. Other remodelers would also be offered the assistance. 8. QSA indicates there is a market to purchase/remodel homes if the transformation assistance is in the form of a grant. Other remodelers, Parsley and Richfield State Agency, for example, have explored purchase/remodel projects but have not overcome the need for a large equity contribution and the financial challenge of costs exceeding value. 9. The average Richfield home does not meet the tax increment finding of blight to secure grant payback through TIF. Payback by the remodeler or future homebuyer as a deferred loan makes a project financially infeasible. 10. Funds are available; transformation is funded from proceeds of sale of Richfield Rediscovered vacant lots. Alternative Recommendation: 1. Authorize some of the proposed changes. 2. Make no changes to the Transformation Program. 3. Modify the program further. Discussion/Decision Mode: QSA has a remodeling opportunity that is time sensitive and requires an HRA response by October 7, 1996. The other changes are supportive to a major Transformation Program marketing initiative which is proposed for early 1997.. Respectfully submitted, ~~ James I~. ~ rosser Executive Director M JDP:ds • _ ~ ~ ~ •~ ~ ,~ ~ o o p d O ~ ti ti O ~„ N .--~ = d ~ ~ ~ ~ ~ as ~~ ~ ~ 3 L E a ~r = 3 _ 's 1~ M ~ • ~+ r ~ ~ b4 b4 = _ '~ ~ H ~ t ~ •N N O ~ G1 ~ ~ E L ~ ~ c L w ~ N ~ N .w ~ 69 69 L ~ ° ~ N L ~ ~- A ~ ~t ~a W o ~ ~•~ ~ ~ ~ ~ ~" ~= ~ W a `fl ~;, ~ •c ~ £ ds sg C ~ ° ~ ~ ° o s ~ . C d V w ,,, ~ a ' o 3 rI1 . W N 'C O . ~ ~ ~ .--~ sr~ ~ d v ~ ~ J -aLo ~s ~ O ~ s~ ~ ~ ~ •~ ~ d ~ O ~: O ~ 69 ~ 69 3 ~ t V ~ N ~ ~ ~ .~ ~ d £ ~ N W N >, `~ p • M N N v d ~ y ~j ~+ ~ p .M-~ ~ t = C 'a - G1 • ~ ~ o ~ s9 ~ O ~c~ c ~. cs ~ L ~ ~ V •V O ~ ~ L ~ V N V ~ ~ ~ ~ ~ ~ O ~' Qom ~ + + • '' O O ~ i ~ ~ ~ sQ.o ~~'~ O~ 01 L ~--i .--~ ~ V ~ ~' ~"' ~ Attachment - HRA Letter 10/7/96 Transformation Homes Program Transformation Homes Program Proposed Policy Revisions October 7, 1996 Three program revisions are proposed: 1. Provide 15 percent deferred loans for remodeling contracts above $100,000. The present program provides 15 percent deferred loans for $50,000 to $100,000 contracts. The $100,000 ceiling was originally designed to ensure sufficient funds were budgeted to accommodate requests. Sufficient funds are budgeted. Larger remodeling projects do not require an excessive amount of additional deferred loan monies: $120,000 = $18,000 loan; $140,000 = $21,000 loan. 2. Provide 10 percent deferred loans for remodeling contracts between $30,000 and 50 000. Norwest Bank Richfield partners with the HRA in providing the permanent mortgage financing for homeowners initiating value added remodeling. Norwest recommends additional incentive for this size of remodeling: $30,000 = $3,000 loan; $45,000 = $4,500 loan. 3. Provide a grant for purchase/remodel projects that result in property values in excess of $200,000. Higher value homes are encouraged. Without a new source of equity, remodelers can not cover remodeling costs which exceed value. A sample grant benefited transformation project is compared to the Richfield Rediscovered Program on the following page. Approximately two or three homes could be purchased annually to remodel and to move more homes into the higher value market. With the properly sized financial support structured as a grant rather than a loan, major purchase/remodel activity can be stimulated. • Attachment - HRA Letter 10/7/96 Transformation Homes Program • TRANSFORMATION PROGRAM GRANT CONCEPT COMPARED TO RICHFIELD REDISCOVERED QSA, a developer has proposed a remodeling project which requires an equity contribution in the form of a grant. The following comparison is meant to demonstrate that property tax benefits occur even though the grant is not repaid and total costs are not recovered. Program Element Richfield Rediscovered Transformation Grant Cost of Acquisition Cost of Demolition Cost of Remodeling Total Project Cost: $55,000 (average) $ 5,000 (average) Not Applicable $60,000 $120,000 (single example) Limited demolition based on remodeling plan $120,000 to $130,000 (single example) $240,000 - $250,000 Return on Cost Summary $30,000 (proceeds of sale) $30,000 (TI over 25 years) $220,000 (sale price) $24,000-$25,000 (proposed grant - no return) Property Value at $136,000 $220,000 (projected) Completion (average on completed homes) Homestead Tax at $ 800 (average) $ 2,400 (estimated) Acquisition Homestead Tax at $ 2,800 (estimated on the $ 5,200 (estimated) Project Completion program average) Increased homestead $ 2,000 (collected as Tax $ 2,800 (not collected, an taxes to all taxing jurisdictions Increment) indirect benefit as a as a result of project result of remodeling) Numbers are rounded to the nearest $1,000 and provided for discussion purposes. HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 66 Agenda October 7, 1996 Issue Statement: Request to execute Subordination, Non-Disturbance and Attornment Agreement for CSM and Borders, Inc., Shops at Lyndale, Phase II. Background: CSM is finalizing lease arrangements with Borders, Inc. to occupy space in the Shops at Lyndale, Phase II. As part of their negotiations, the HRA is being asked to execute the Subordination, Non-Disturbance and Attornment Agreement which is attached. Basically, the agreement will- permit Borders, Inc. to continue operation on the site in the event that CSM defaults under its mortgages with the HRA and the HRA takes the property back. Recommended Motion: Approve and execute the Subordination, Non-Disturbance and Attornment Agreement for Borders, Inc. relating to Shops at Lyndale, Phase II. Basis of Recommendation: 1. The HRA has approved similar agreements for other tenants located at Shops at Lyndale. 2. The proposed agreement has been reviewed by staff and the HRA's legal counsel together with a copy of the proposed lease for the tenants. 3. The agreement will help assure tenancy if the HRA took over the property due to a mortgage default. Alternative Recommendation: 1. Do not approve nor execute the Subordination, Non-Disturbance and Attornment Agreement for Borders, lnc. 2. Delay approval Discussion/Decision Mode: Approval and execution of the proposed agreement will expedite the process between CSM and Borders, Inc. Respectful) submitted, James D. rosser Executive Director JDP:ds HRA Letter 10/7/96 Borders, Inc. SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT This Subordination, Non-Disturbance and Attornment Agreement (this "Agreement") is entered into as of , 1996 (the "Effective Date"), between THE HOUSING AND REDEVELOPMENT AUTHORITY FOR THE CITY OF RICHFIELD, MINNESOTA, a public body corporate and politic under the laws of the State of Minnesota, whose address is 6700 Portland Avenue South, Richfield, Minnesota ("Mortgagee"), and BORDERS, INC., a Delaware corporation, whose address is 311 Maynard, Ann Arbor, Michigan 48104-2211 ("Tenant"), with reference to the following facts: A. CSM INVESTORS, INC., a Minnesota corporation, whose address is 2575 University Avenue West, Suite 150, St. Paul, Minnesota 55114-1024 ("Landlord"), owns certain real property which is part of the Shopping Center known as "The Shops at Lyndale Phase II" located north of Interstate 494, west of Lyndale Avenue South, and east of Colfax Avenue South (now vacated) in Richfield, Minnesota (such real property, including all buildings, improvements, structures and fixtures located thereon, "Landlord's Premises"), as more particularly described in Schedule A. B. Landlord has executed a mortgage or mortgages as amended, increased, renewed, extended, spread, consolidated, severed, restated, or otherwise changed from time to time (collectively, the "Mortgage") identified as Schedule B attached hereto in favor of Mortgagee, payable upon the terms and conditions described therein, and filed of record on October 6, 1995, as Document Nos. 2642458, 2642459, 2642460, 2642461, 2642462, 2642463, 2642464, 2642465, 2642466, 2642467, 2642468, 2642469, and 2642470, in the Official Records of the County of Hennepin, State of Minnesota (the "Land Records"). C. Pursuant to a Lease dated as of October 1, 1996 (the "Lease"), Landlord demised to Tenant a portion of Landlord's Premises ("Tenant's Premises"). Tenant's Premises are commonly known as 800 West 78th Street, Richfield, Minnesota 55423. D. A memorandum of the Lease is to be recorded in the Land Records prior to the recording of this Agreement. E. Tenant and Mortgagee desire to agree upon the relative priorities of their interests in Landlord's Premises and their rights and obligations if certain events occur. NOW, THEREFORE, for good and valuable consideration, Tenant and Mortgagee agree: • 1. Definitions. The following terms shall have the following meanings for purposes of this Agreement. 1.1 Construction-Related Obligation. A "Construction-Related Obligation" means any obligation of Landlord under the Lease to make, pay for, or reimburse Tenant for any alterations, demolition or other improvements or work at Landlord's Premises, including Tenant's Premises. "Construction-Related Obligations" shall not include: (a) reconstruction or repair following fire, casualty or condemnation; or (b) day-to-day maintenance and repairs. 1.2 Foreclosure Event. A "Foreclosure Event" means: (a) foreclosure under the Mortgage; (b) any other exercise by Mortgagee of rights and remedies (whether under the Mortgage or under applicable law, including bankruptcy law) as holder of the Loan and/or the Mortgage, as a result of which Successor Landlord becomes owner of Landlord's Premises; or (c) delivery by Landlord to Mortgagee (or its designee or nominee) of a deed or other conveyance or Landlord's interest in Landlord's Premises in lieu of any of the foregoing. 1.3 Former Landlord. A "Former Landlord" means Landlord and any other party that was landlord under the Lease at any time before the occurrence of any attornment under this Agreement. 1.4 Offset Right. An "Offset Right" means any right or alleged right of Tenant to any offset, defense (other than one arising from actual payment and performance, which payment and performance would bind a Successor Landlord pursuant to this Agreement), claim, counterclaim, reduction, deduction, or abatement against Tenant's payment of Rent or performance of Tenant's other obligations under the Lease, arising (whether under the Lease or other applicable law) from Landlord's breach or default under the Lease. 1.5 Rent. The "Rent" means any fixed rent, base rent or additional rent under the Lease. 1.6 Successor Landlord. A "Successor Landlord" means any party that becomes owner of Landlord's Premises as the result of a Foreclosure Event. 1.7 Termination Right. A "Termination Right" means any right of Tenant to cancel or terminate the Lease or to claim a partial or total eviction arising (whether under the Lease or under applicable law) from Landlord's breach or default under the Lease. 2. Subordination. The Lease shall be, and shall at all times remain, subject and subordinate to the Mortgage, the lien imposed by the Mortgage, and all advances made under the Mortgage. i C] 3. Nondisturbance, Recognition and Attornment. 3.1 No Exercise of Mortgage Remedies Against Tenant. So long as the Lease has not been terminated on account of Tenant's default that has continued beyond applicable cure periods (an "Event of Default"), Mortgagee shall not name or join Tenant as a defendant in any exercise of Mortgagee's rights and remedies arising upon a default under the Mortgage unless applicable law requires Tenant to be made a party thereto as a condition to proceeding against Landlord or prosecuting such rights and remedies. In the latter case, Mortgagee may join Tenant as a defendant in such action only for such purpose and not to terminate the Lease or otherwise adversely affect Tenant's rights under the Lease or this Agreement in such action. 3.2 Nondisturbance and Attornment. If the Lease has not been terminated on account of an Event of Default by Tenant, then, when Successor Landlord takes title to Landlord's Premise: (a) Successor Landlord shall not terminate or disturb Tenant's possession of Tenant's Premises under the Lease, except in accordance with the terms of the Lease and this Agreement; (b) Successor Landlord shall be bound to Tenant under all the terms and conditions of the Lease (except as provided in this Agreement); (c) Tenant shall recognize and attorn to Successor Landlord as Tenant's direct Landlord under the Lease as affected by this Agreement; and (d) the Lease shall continue in full force and effect as a direct lease, in accordance with its terms (except as provided in this Agreement), between Successor Landlord and Tenant 3.3 Further Documentation. The provisions of this Article shall be effective and self- operative without any need for Successor Landlord or Tenant to execute any further documents. Tenant and Successor Landlord shall, however, confirm the provisions of this Article in writing upon request by either of them. 4. Protection of Successor Landlord. Notwithstanding anything to the contrary in the Lease or Mortgage, Successor Landlord shall not be liable for or bound by any of the following matters: 4.1 Claims Against Former Landlord. Any Offset Right that Tenant may have against any Former Landlord relating to any event or occurrence before the date of attornment, including any claim for damages of any kind whatsoever as the result of any breach by Former Landlord that occurred before the date of attornment. (The foregoing shall not limit either (a) Tenant's right to exercise against Successor Landlord any Offset Right otherwise available to Tenant because of events occurring after the date of attornment or (b) Successor Landlord's obligation to correct any conditions that existed as of the date of attornment and violate Successor Landlord's obligations as Landlord under the Lease). 4.2 Prepayments. Any payment of Rent that Tenant may have made to Former Landlord more than thirty days before the date such Rent was first due and payable under the Lease with respect to any period after the date of attornment other than and only to the extent that, the Lease expressly required such a prepayment. 4.3 Payment; Security Deposit. Any obligation: (a) to pay Tenant any sum(s) that any Former Landlord owed to Tenant of (b) with respect to any security deposited with Former Landlord, unless such security was actually delivered to Mortgagee. This paragraph is not intended to apply to Landlord's obligations to make any payment that constitutes a "Construction-Related Obligation." 4.4 Modification, Amendment or Waiver. Any modification~or amendment of the Lease, or any waiver of any terms of the Lease, made without Mortgagee's written consent. 4.5 Surrender, Etc. Any consensual or negotiated surrender, cancellation, or termination of the Lease, in whole or in part, agreed upon between Landlord and Tenant, unless effected unilaterally by Tenant pursuant to the express terms of the Lease. 4.6 Construction-Related Obligations. Any Construction-Related Obligation of Former Landlord, except as expressly provided for in Schedule B (if any) attached to this Agreement. 5. Exculpation of Successor Landlord. Notwithstanding anything to the contrary in this Agreement or the Lease, upon any attornment pursuant to this Agreement the Lease shall be deemed to have been automatically amended to provide that Successor Landlord's obligations and liability under the Lease shall never extend beyond Successor Landlord's (or its successors' or assigns;) interest, if any, in Landlord's Premises from time to time, including insurance and condemnation proceeds, Successor Landlord's interest in the Lease, and the proceeds from any sale or other disposition of Landlord's Premises by Successor Landlord (collectively, "Successor Landlord's Interest"). Tenant shall look exclusively to Successor Landlord's interest (or that of its successors and assigns) for payment or discharge of any obligations of Successor Landlord under the Lease as affected by this Agreement. If Tenant obtains any money judgment against Successor Landlord with respect to the Lease or the relationship between Successor Landlord and Tenant, then Tenant shall look solely to Successor Landlord's Interest (or that of its successors or assigns) to collect such judgment. Tenant shall not collect or attempt to collect any such judgment out of any other assets or Successor Landlord. 6. Mortgagee's Right to Cure. 6.1 Notice to Mortgagee. Notwithstanding anything to the contrary in the Lease or this Agreement or the Lease, before exercising any Termination Right or Offset Right, Tenant shall provide Mortgagee with notice of the breach or default by Landlord giving rise to same (the "Default Notice") and, thereafter, the opportunity to cure such breach or~default as provided for below. 6.2 Mortgagee's Cure Period. After Mortgagee receives a Default Notice, Mortgagee shall have a period of thirty days beyond the time available to Landlord under the Lease in which to cure the breach or default by landlord. Mortgagee shall have no obligation to cure (and shall have no liability or obligation for not curing) any breach or default by Landlord, except to the extent that Mortgagee agrees or undertakes otherwise in writing. 6.3 Extended Cure Period. In addition, as to any breach or default by landlord the cure of which requires possession and control of Landlord's Premises, provided only that Mortgagee undertakes to Tenant by written notice to Tenant within thirty days after receipt of the Default Notice to exercise reasonable efforts to cure or cause to be cured by a receiver such breach or default within the period permitted by this paragraph, Mortgagee's cure period shall continue for such additional time. (the "Extended Cure Period") as Mortgagee may reasonably require to either (a) obtain possession and control of Landlord's Premises and thereafter cure the breach or default with reasonable diligence and continuity or (b) obtain the appointment of a receiver and give such receiver a reasonable period of time in which to cure the default. 7. Confirmation of Facts. Tenant represents to Mortgagee and to any Successor Landlord, in each case as of the Effective Date: 7.1 Effectiveness of Lease. The Lease is in full force and effect, has not been modified, and constitutes the entire agreement between Landlord and Tenant relating to Tenant's Premises. Tenant has no interest in Landlord's Premises except pursuant to the Lease. No unfulfilled conditions exist to Tenant's obligations under the Lease. 7.2 Rent. Tenant has not paid any Rent that is first due and payable under the Lease after the Effective Date. 7.3 No Landlord Default. To the best of Tenant's knowledge, no breach or default by Landlord exists and no event has occurred that, with the giving of notice, the passage of time or both, would constitute a breach or default. 7.4 No Tenant Default. Tenant is not in default under the Lease and has not received any uncured notice of any default by Tenant under the Lease. 7.5 No Termination. Tenant has not commenced any action or sent or received any notice to terminate the Lease. Tenant has no presently exercisable Termination Right(s) or Offset Right(s). 7.6 Commencement Date. The "Commencement Date" of the Lease was October 1, 1996. 7.7 No transfer. Tenant has not transferred, encumbered, mortgaged, assigned, conveyed or otherwise disposed of the Lease or any interest therein, other than sublease(s) made in compliance with the Lease. 7.8 Due Authorization. Tenant has full authority to enter into this Agreement, which has been duly authorized by all necessary actions. Miscellaneous. 8.1 Notices. All notices or other communications required or permitted under this Agreement shall be in writing and given by certified mail (return receipt requested) or by nationally recognized overnight courier service that regularly maintains records of items delivered. Each party's address is as set forth in the opening paragraph of this Agreement, subject to change by notice under this paragraph. Notices shall be effective the next business day after being sent by overnight courier service, and five business days after being sent by certified mail (return receipt requested). 8.2 Successors and Assigns. This Agreement shall bind and benefit the parties, their successors and assigns, any Successor Landlord, and it successors and assigns. If Mortgagee assigns the Mortgage, then upon delivery to Tenant of written notice thereof accompanied by the assignee's written assumption of all obligations under this Agreement, all liability of the assignor shall terminate. 8.3 Entire Agreement. This Agreement constitutes the entire agreement between Mortgagee and Tenant regarding the subordination of the Lease to the Mortgage and the rights and obligations of Tenant and Mortgagee as to the subject matter of this Agreement. 8.4 Interaction with Lease and with Mortgage. If this Agreement conflicts with the Lease, then this Agreement shall govern as between the parties and any Successor Landlord, including upon any attornment pursuant to this Agreement. This Agreement supersedes, and constitutes full compliance with, any provisions in the Lease that provide for subordination of the Lease to, or for delivery of nondisturbance agreements by the holder of, the Mortgage. Mortgagee confirms that Mortgagee has consented to Landlord's entering into the Lease. 8.5 Mortgagee's Rights and Obligations. Except as expressly provided for in this Agreement, Mortgagee shall have no obligations to Tenant with respect to the Lease. If an attornment occurs pursuant to this Agreement, then all rights and obligations of Mortgagee under this Agreement shall terminate, without thereby affecting in any way the rights and obligations of Successor Landlord provided for in this Agreement. • • 8.6 Interpretation; Governing Law. The interpretation, validity and enforcement of this Agreement shall be governed by and construed under the internal laws of the State of Minnesota ,excluding its principles of conflict of laws. 8.7 Amendments. This Agreement may be amended, discharged or terminated, or any of its provisions waived, only by a written instrument executed by the party to be charged. 8.8. Execution. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. 8.9 Mortgagee's Representation. Mortgagee represents that Mortgagee has full authority to enter into this Agreement, and Mortgagee's entry into this Agreement has been duly authorized by all necessary actions. IN WITNESS WHEREOF, this Agreement has been duly executed by Mortgagee and Tenant as of the Effective Date. MORTGAGEE: TENANT: • THE HOUSING AND REDEVELOPMENT BORDERS, INC. AUTHORITY FOR THE CITY OF RICHFIELD, MINNESOTA By: Name: Its: By: Name: Its: . CONSENT OF LANDLORD Landlord consents and agrees to the foregoing Agreement, which was entered into at Landlord's request. The foregoing Agreement shall not alter, waive or diminish any of Landlord's obligations under the Mortgage or the Lease. The above Agreement discharges any obligations of Mortgagee under the Mortgage and related loan documents to enter into a nondisturbance agreement with Tenant. Landlord is not a party to the above Agreement. LANDLORD: CSM INVESTORS, INC. By: Name: Its: Date: STATE OF ) ss. COUNTY OF ) ACKNOWLEDGMENTS On the day of , 19 ,before me personally came to me known, who, being by me duly sworn, did depose and says that (s)he is the of The Housing and Redevelopment Authority for the City of Richfield, Minnesota, the public body corporate and politic named in the foregoing instrument; and that (s)he executed such instrument as the act and deed of, and on behalf of, said entity. Notary Public My Comm. Expires: • STATE OF ) ss. COUNTY OF ) On the day of , 19 ,before me personally came to me known, who, being by me duly sworn, did depose and says that (s)he is of Borders, Inc., the corporation named in the foregoing instrument; and that (s)he signed his/her name thereto by authority of the board of directors of said corporation. Notary Public My Comm. Expires: THIS INSTRUMENT WAS DRAFTED BY: Margaret Van Meter Dickinson, Wright, et.al. • 525 North Woodward Avenue P.O. Box 509 Bloomfield Hills, Michigan 48303-0509 AA0009A61E 43632/37 BLOT 125081-2(9/19/96) • HRA Letter 10/7/96 SCHEDULE A ~HEDULE A LEGAL DESCRIPTION Pg 1 of 4 Portal 1: That part of Lot 1, lying West of the East 10.5 feet thereof, and the East 10.34 feet of Lot 2, Hlock 1, STRAND-BOWEN SECOND ADDITION, Hennepin County, Minnesota. Torrens Certificate No. 786331 Parcel 2: Lot 3 and that part of Lot 2 iyinq west of the East 10.34. feet thereof, Block 1, STRAND-BOWEN SECOND ADDITION, Hennepin County, Minnesota Torrens Certificate No. 661709 Paresl 3: Lots 4 and 5, Block 1, STRAND-BOWEN SECOND ADDITION, Hennepin County, Minnesota Torrens Certificate No. 675728 Parcel 4: Lot 6 and the easterly 4.5 feet of Lot 7, Block I, STRAND-BOWEN SECOND ADDITION, Hennepin County, Minnesota Torrens Certificate No. 650934 Parcel 5s That part of Lat 7 lying westerly of~the easterly 4.5 feet thereof and the easterly 4.5 feet of Lot 8, all in Block 1, STRAND-SOWEN SECOND ADDITION, Hennepin County, Minnesota Torrens Certificate No. 650934 Parcel 7: Lots 1, 2, 3 and 4, Block 2, STRAND-BOWEN SECOND ADDITION, Hennepin County, Minnesota Torrens Certificate No. 393104 Parcel 8: Lots 5 to 11, inclusive, Block 2, STRAND-BOWEN SECOND ADDITION, according to the recorded plat thereof, Hennepin County, Minnesota Torrens Certificate No. 526623 Parcel 9: . Lots 1 and 2, Block 1, STRAND-BOWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota Torrens Certificate No. 450932 SCHEDULE A Pg 2 of 4 Parcel 10: Lots 3 and 4, Block i, STRAND-BOWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota Torrens Certificate No. 733908 Parcel 11: Lots 5 and 6, Block 1, STRAND-BOWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota Torrens Certificate No. 542041 Parcel 12: Lots 7 and 8, Block 1, STRAND-BOWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota Torrens Certificate No. 685006 Parcel 13: Lot 10, except the west 10 feet 6 inches thereof and all of Lot 9, Block 1, STRAND-BOWEY ADDITION TO RICHFIELD, Hennepin County, Minnesota. Together with the easements appurtenant for party wall purposes over the west 1 foot of Lot 8, Block 1 as shown in Document No. 556318 and over the East 6 inches of the west 10.5 feet of Lot 10, as shown in Document No. 555892, all as referred to in deed Document No. 718808, Files of Registrar of Titles. Torrens Certificate No. 770962 Parcel 14: The west 10 feet, 6 inches of Lot 10 and all of Lot 11, Block 1, STRAND-HOWEN ADDITION TO RICHFIELD, Also the east 10.5 feet of Lot 2, Block 1, STRAND-BOWEN SECOND ADDITION all in Hennepin County, Minnesota Torrens Certificate No. 802981 Parcel 15: Lots 8, 9, 10 and 11, Block 2, STRAND-HOWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota Torrens Certificate No. 271328 Parcel 16: Lots 4, 5, 6 and ? and the west 1 foot of Lot 3, Block 2, STRAND-BOWEN ADDITION TO RICHFIELD, Hennepin County, Hinnesota Certificate 386122 Parcel 17: Lots 1 and 2; and Lot 3 except the west 1 foot thereof, Block 2, STRAND-HOWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota Torrens Certificate No. 388592 SCHEDULE A Pg3of4 Parcel 18: _ That part of the vacated Aldrich Avenue South adjoining Lot 5, Block 2, STRAND'S SECOND ADDITION TO RICHFIELD iyinq between the Westerly extensions across it of the South line of West 77 I/2 Street and the North line of Market Drive as extended to the West line of STRAND'S SECOND ADDITION TO RICHFIELD, according to the plat thereof on file or of record in the office of the Register of Deeds, Hennepin County, Minnesota Torrens Certificate Number: 533220 Parcel 19: Lot 5, Block 2, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota Torrens Certificate No. 533221 Parcel Z0: Lot 4, Block 2, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota Torrens Certificate No. 781024 Parcel 21: Lots 2 and 3, Block 2, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota. Torrens Certificate Nos. 225502 and 228498 Parcel 22: Lot 1, Block 2, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota Torrens Certificate No. 341268 Paresl Z3: Lots 10 and 11, Block 1, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota Torrens Certificate No. 691007 Paresl 24: Lot 9, Block 1, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota Torrens Certificate No. 691009 Parcel 25: Lot 8, except the easterly 6 inches thereof, Block i STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota Torrens Certificate No. 691008 Parcel 25: Lots 6, 7 and the easterly 6 inches of Lot 8, Block 1, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota Torrens Certificate No. 245518 -~ SCHEDULE A - ~ 4 of 4 Parral Z7: That par: og vacated ar uavacated 77 Z/Z St~saz West as dad:.catad iZ the pinta og STRAND-3GWEN SF.gND ~1DDI" ~ON, S'~RIlND-3GGTEH ,SDIIITICJN ';O S~G.Q~T - , dND S~~iD' S Sgq~ aDDIT20H and Tha= gar't ag vacated or unvaeatad ~.dr:ct ~ve:tue Sout : as ded:.oatad ~ t :e plat og STRAND'S SECOND aDDITI08, S.y~q aor`,.S ag the South lie og West 77 Z/2 Street and Ly:„ ;q south of the souttz Zirze of 77th St-set West eoecnpt teat parr og vacatad or imvacatad 77 i/Z St:eat vest aihi:h Ise arastar~y og tha southarZy astnasioa of the a+ast lfaa og tts easterly 4.5 :eat og Lot 9, Block :, STRAND-3QPi8'Di SSCOND s1DDITION', all 3n Saaaapfa Cosmty, D[3aaasota and a~ecsat tha nor+..harX 48.0 gnat-vg Lot 8, a~eesgt tee eastar?y 4.5 gaet theraog; and tha northerly 48.0 gast og Lots 9 to it ' :c_::sive, 97ock 2, STS.~ND-BOWE^7 SECIIND ADDI'T'ION, accar•'..iag to tha recorded plat ~,.:eraog, Heaaegia C~tr, Together xirh as angurtsraat aase~t gar access aver the follow= :g dascr~ed ~r;gerr-~; Lot 8, except the easterly 4.5 feet thereai; Lat 9, Lat IO and the easterly I5 feet or-I.at I I, Hlocic I, S'IR~~vD-$OWEiY SECOND xDDTII03Y, ac:.arding to the recorded plat thereaf, Hennepin County,. Minnesota, AND All of West 77 1/2 Street as dedicated in the plat of S'I'RAIVD-$OWE~( SECOND r1DDITION, which lire westerly of fife souttteriy extension of the west line of the easterly 4.5 feet of Lot S, Block 1, and wftich lies easterly of the southerly exte:~sion. of the west line of the easterly l 5 feet of Lot 11, Bloch I, of said plat. AND 'The aorthe: iy 5~.0 fees of Lat S, exc;.pt the easterly 4.5 feat thereoF and tize zzortizeriy 50.0 feet of Lat 9, the norttiesiy 50.0 feet of Lot 10 and the northerly 50.0 feet of size easterly 15 feet ofLat 11, Btoclc 2, STIZAND- BOWEN SECOND ,4DDt~'IQN, acrarding to the raarded plat the:eo~ Hennepin County, ~finnesata. HRA Letter 10/7/76 SCHEDULE. B SCHEDULE B U PAGE 1 OF 2 Mortgage dated July 12, 1995, filed of record October 6, 1995, as Document No. 2642458 executed by CSM Investors, Inc., a Minnesota corporation, to The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, Richfield, MN, in the original principal amount of $322,225.00. Mortgage dated July 12, 1995, filed of record October 6, .1995, as Document No. 2642459 executed by CSM Investors, Inc., a Minnesota corporation, to The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, Richfield, MN, in the original principal amount of $75,075.00. Mortgage dated July 12, 1995, filed of record October 6, 1995, as Document No. 2642460 executed by CSM Investors, Inc., a Minnesota corporation, to The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, Richfield, MN, in the original principal amount of $81,075.00. Mortgage dated July 12, 1995, filed of record October 6, 1995, as. Document No. 2642461 executed by CSM Investors, Inc,, a Minnesota corporation, to The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, Richfield, MN, in the original principal amount of $567,575.00. Mortgage dated July 12, 1995, filed of record October 6, 1995, as Document No. 2642462 " executed by' CSM Investors, Inc., a Minnesota corporation, to The Housing and Redevelopment Authority in and for the City of Richfield, Muinesota, Richfield, MN, in the original principal amount of $209,075.00. Mortgage dated July 12, 1995, filed of record October 6, 1995; as Document No. 2642463 executed by CSM Investors, Inc., a Minnesota corporation, to The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, Richfield, MN, in the original principal .amount of $131,125.00. Mortgage dated July 12, 1995, filed of record October. 6, 1995, as Document No. 2642464 executed by CSM Investors, Inc., a Minnesota corporation, to The Housing and Redevelopment Authority in and. for the City of Richfield, Minnesota, Richfield, MN, in the original principal amount of $64, 625.00. . Mortgage dated July 12, 1995, filed of record October 6, 1995, as Document No. 2642465 executed by CSM Investors, Inc., a Minnesota:corporation, to The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, Richfield, MN, in, the original principal amount of $940,075.00. ~ ~~~ . NON-DISTURBANCE AND ATTORNMENT AGREEMENT Lyndale & 494, Richfield, MN SCHEDULE B • PAGE 2 OF 2 Mortgage dated July 12, 1995, filed of record October 6, 1995; as Document No. 2642466 executed by CSM Investors, Inc., a Minnesota corporation, to 'The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, Richfield, MN, in the original principal amount of $159,075.00. Mortgage dated July 12, 1995, filed of record October 6, 1995, as Document No. 2642467 executed by CSM Investors, Inc., a Minnesota corporation, to The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, Richfield, MN, in the original principal amount of $267,575.00. ' Mortgage dated July 12, 1995, filed of record October 6, 1995, as Document No. 2642468 executed by CSM Investors, Inc., a Minnesota corporation, to The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, Richfield, MN, in the original principal amount of $107,575.00. Mortgage dated July 12, 1995, filed of record October 6, 1995, as Document No. 2642469 executed by CSM Investors, Inc., a Minnesota corporation, to The Housing and Redevelopment Authority in and for the City of Richfield; Minnesota, Richfield, MN, in the original principal amount of $169,075.00. Mortgage dated July 12, 1995, filed of record October 6, 1995, a~s Document No. 2642470 executed by CSM Investors, Inc., a Minnesota corporation, to The Housing and Redevelopment Authority in .and for the City of Richfield, l~nnesota, Richfield, MN, in the original principal amount of $107,575.00. ~~~.~ NON-DISTURBANCE AND ATTORNMENT AGREEMENT Lyndale & 494, Richfield, MN HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 65 Agenda October 7, 1996 Issue Statement: Authorization of Subordination Agreement. relating to HRA interest in Phase II, CSM Shops at Lyndale to First Bank. Background: The HRA has a mortgage interest in CSM Phase II Shops at Lyndale. CSM is seeking interim financing with a revolving line of credit for Phase II of Shops at Lyndale. CSM intends to obtain this financing from First Bank National Association (First Bank) in an amount not to exceed $15 million. First Bank and CSM are requesting the HRA to subordinate its interest in the project to First Bank. The interim financing would be available to CSM until permanent financing for Phase II is secured. Under the proposal, payments due CSM from the HRA would be paid to the lender if CSM defaulted. The lender would manage the property to protect its assets and the HRA would also benefit. Recommended Motion: Approve the Subordination Agreement-for Phase II of Shops of Lyndale and authorize its execution. Basis of Recommendation: 1. The seeking of interim financing by CSM is not unusual. 2. First Bank and the HRA have similar interests in protecting the Phase II asset as a viable commercial property. 3. Similar action requested by CSM for Phase I, Shops at Lyndale for permanent financing and subordination of the HRA interest was considered and approved by the HRA on February 28, 1995. Alternative Recommendation: 1. Delay action. 2. Request CSM to consider alternatives. 3. Refuse to approve. DiscussionlDecision Mode: CSM intends to finalize its application with its lender for interim financing soon. A timely response would facilitate the process. Respe~ ull submitted, Executive Director JDP:cak SUBORDINATION AGREEMENT This Agreement is made effective as of the day of , 1996, by and among THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA (the "Authority"), FIRST BANK NATIONAL ASSOCIATION, a national banking association (the "Lender") and CSM INVESTORS, INC., a Minnesota corporation (the "Developer") . RECITALS The Authority and CSM Corporation ("CSM Corporation") entered into a Contract For Private Redevelopment dated April 29, 1994 (the "Development Contract"), whereby the Authority agreed to provide certain aid and assistance to the developer under the Development Contract through use of public funds -to finance certain costs of development of the Phase II Property (as defined in the Development Contract). Pursuant to an Assignment and Assumption dated as of August 1, 1994, CSM. Corporation assigned all of its rights and interests in the Development Contract to the Developer and the .Developer assumed all of CSM Corporation's obligations under the Development Contract. The Development Contract was amended by a letter amendment by and among CSM Corporation, the Authority and the Developer, dated November 1, 1994. To secure the Developer's obligations to the Authority under the Development Contract, the Developer has executed and. delivered the following in favor of the Authority: (i) a Mortgage securing a principal debt of $107,575.00, dated July 12, 1995, and recorded on , 1995, as Document No. in the office of the Registrar of Titles of Hennepin County, Minnesota, (ii) a Mortgage securing a principal debt of $169,075.00, dated July 12,1995, and recorded on , 1995, as Document No. in the office of the Registrar of Titles of Hennepin County, Minnesota, (iii) a Mortgage securing a principal debt of $107,575.00, dated July 12,1995, and recorded on ,1995, as Document No. in the office of the Registrar of Titles of Hennepin County, Minnesota, (iv) a Mortgage securing a principal debt of $267,575.00, dated July 12, 1995, and recorded on ,1995, as Document No. ~ the office of the Registrar of Titles of Hennepin County, Minnesota, (v) a Mortgage securing a principal debt of $159,075.00, dated July 12, 1995, and recorded on 1995, as Document No. in the office of the Registrar of Titles of Hennepin .County, Minnesota, (vi) a Mortgage securing a principal debt of $940,750.00, dated July 12,1995, and recorded on ,1995; as Document No. in the office of the Registrar of Titles of Hennepin County, Minnesota, (vii) a Mortgage securing a principal debt of $64,625.00, dated July 12,1995, and recorded on , 1995, as Document No. in the office of the Registrar of Titles of Hennepin County, Minnesota, (viii) a Mortgage securing a principal debt of $131,125.00, dated July 12, 1995, and recorded on .1995, as Document No. in the office of the Registrar of Titles of Hennepin County, Minnesota, (ix} a Mortgage securing a principal debt of $209,075.00, dated July 12,1995, .and recorded on 1995, as Document No. in the office of the Registrar of Titles of Hennepin County, Minnesota, (x) a Mortgage securing a principal debt of $567,575.00, dated July 12,1995, and recorded on ,1995, as Document No. in the office of the Registrar of Titles of Hennepin County, Minnesota, (xi) a Mortgage securing a principal debt of $81,075.00, dated July 12, 1995, and recorded on ,1995, as Document No. in the office of the Registrar of Titles of Hennepin County, Minnesota, (xii) a Mortgage securing a principal debt of $75,075.00, dated July 12,1995, and recorded on 1995, as Document No. in the office of the Registrar of Titles-of Hennepin County, Minnesota, and (xiii) a Mortgage securing a principal debt of $322,225.00, dated July 12,-1995, and recorded on ,1995, as Document No. in the office of the Registrar of Titles of Hennepin County, Minnesota (collectively, the. "Authority Mortgages"). Pursuant to the Development Contract, the Authority has executed and delivered to the Developer a Limited Revenue Tax Increment Note (Phase II) (the "Revenue Note"), in the face principal amount of $1,125,759.00, pursuant to which the Authority will make installment payments to the Developer as therein provided, and which has been assigned and endorsed by the Developer to the Lender to secure the Lender Loan (defined below). The Lender has entered into a Revolving Construction Loan Agreement dated as of , 1996 with the Developer, as supplemented by a Project Addendum dated as of , 1996 (collectively the "Lender Loan Agreement"), under which the Lender ,has agreed to make advances to the Developer in a maximum aggregate amount of up to $10,000,000.00 (the "Lender Loan) to finance the construction of a retail shopping center facility located on the land described in Exhibit attached hereto and any other land acquired by the Developer after the date of this Agreement in connection with the Project (defined below), and any appurtenant easement for the benefit of any of the foregoing land granted or obtained before or after the date of this Agreement over the Phase I Property (as defined in the Development Agreement), including, without limitation, any such appurtenant easement, for access and parking (collectively, the foregoing land. and easements are called the "Land"); collectively, the retail shopping center facility and any other improvements now existing or to .be constructed on the Land are called the "Project"). Each advance under the Lender Loan Agreement is evidenced by the Developer's Revolving Note in the face principal amount of $15,000,000.00, dated as of ,1996, payable to the -2- order of the Lender (the "Lender Note"). The Developer's obligations under the Lender Note and the Lender Loan Agreement are secured by, among other things, a Combination Mortgage, Security Agreement and Fixture Financing Statement dated as of , 1996 (the "Lender .Mortgage"), and by an Assignment of Leases and Rents dated as of .1996 (the "Lender Assignment of Rents"; collectively, the Lender Note, the Lender Loan Agreement, the Lender Mortgage and the Lender Assignment of Rents are collectively called the "Lender Loan Documents"). As a condition to entering into the Lender Loan Agreement and making any advances to the Developer under the Lender Loan Agreement, the Lender has required that the Authority (i) fully subordinate all of the terms, covenants, conditions and restrictions contained in the Development Contract and all rights and interests of the Authority in or to the Project or the Land (collectively, the Project and the- Land are called the "Premises") of any kind whatsoever under the Development Contract, under the Authority Mortgages or otherwise to the lien of the Lender Mortgage and the Lender Assignment of Rents and to any other lien or security interest at any time hereafter acquired by the Lender in all or any portion of the Premises, and (ii) upon receipt of written notice from the Lender certifying that an event of default as defined in the Lender Loan Agreement or the Lender Mortgage has occurred, make all future payments becoming due and payable under • the Revenue Note to the Lender or to any transferee of the Lender. Accordingly, the Authority, the Developer and the Lender hereby agree as follows: 1. The Authority acknowledges and agrees that all rights and interests of the. Authority under the Development Contract, under the Authority Mortgages or otherwise in or to the Premises are and shall remain fully subordinate and subject to the liens of the Lender Mortgage and the Lender Assignment of Rents and all liens or security- interests now held or at any time hereafter acquired by the Lender to secure other loans or extensions of credit made by the Lender to facilitate completion of the Project in accordance with the Lender Loan Agreement. In further clarification of the subordination accomplished by the preceding sentence, and not in limitation thereof, the Authority acknowledges and agrees that (i) any right which the Authority has under Section 3.2 of the Development Contract or otherwise to utilize or sell the Premises after default by the Developer is fully subordinate to and subject to the lien of the Lender Mortgage and the Lender Assignment of Rents, (ii) any right which the Authority has under Section 6.2 of the Development Contract to receive insurance. proceeds or to require the Premises to be rebuilt in the event of a casualty to the Premises is fully subordinate to and subject to the rights of the Lender under the Lender Mortgage and the Lender Assignment - of Rents, and (iii) notwithstanding the provisions of Sections 8.3 and 10.2 of the • Development Contract, either before or after foreclosure by the Lender Qr action in -3- lieu thereof, the Lender or the Lender`s assignee may, without assuming any of the obligations of the Developer under the Development Contract and without any consent from the Authority, undertake to continue. to complete construction of the Project with such changes to the Project as the Lender deems necessary or appropriate, and (iv) notwithstanding the provisions of Section 8.4 of the Development Contract, the Lender shall have no obligation to provide to the Authority any notice of any event of default on the part of the Developer under the Lender Loan Agreement or the Lender Mortgage (except as provided in Paragraph 7 below), and the Authority shall have no right to cure any event of default on the part of the Developer under the Lender Loan Agreement or the Lender Mortgage. 2. The Authority hereby acknowledges that the Revenue Note has been or will be pledged, endorsed and assigned to the Lender as additional collateral for payment of the Lender Loan made by the Lender to the Developer under the Lender Loan Agreement and hereby consents to said pledge, endorsement and assignment. If in the future there is an event of default by the Developer under the Lender Loan Agreement or the Lender Mortgage, the Lender, at its option may require that all subsequent payments due under the Revenue Note be paid solely and directly to the Lender or to the Lender's assignee. Upon the Authority's receipt of any such notification to that effect, the Developer hereby authorizes and directs the Authority, and the Authority hereby agrees, that all subsequent payments due to the Developer under the terms and conditions of the Revenue Note will be paid solely and exclusively to the Lender or to any such assignee, as the case may be. The Developer further agrees that this Agreement shall constitute an irrevocable direction and full grant of authority to the Authority to pay all such. amounts to the Lender upon receipt of notice from the Lender directing the Authority to do so, without proof of the event of default relied upon in any such notice. The Authority is hereby irrevocably authorized to rely upon and comply with (and shall be fully protected in so doing) any notice or demand by the Lender for the payment to the Lender of any amounts due to the Developer under the Revenue Note and the Authority shall have no duty or obligation to inquire as to whether any event of default under the Lender Loan Agreement or the Lender Mortgage has actually occurred or is then existing. The Developer agrees to indemnify and hold the Authority harmless from all claims, demands, and judgments recovered against the Authority and any costs or expenses incurred by the Authority which arise as a result of the Authority making payments under the Revenue Note to the Lender as provided in this Paragraph 2. Notwithstanding any other provision in this Agreement to the contrary, the Authority, the Developer and the Lender acknowledge and agree that .the Authority shall have no obligation to make any payments under the Revenue Note to the Lender if an Event of Default (as defined in the Development Contract) has occurred under the Development Contract on the part of the Developer and such Event of Default has not been waived by the Authority or cured by the Developer within the time period i -4- • permitted under the Development Contract or cured by the Lender within a reasonable time. 3. The Authority and the Developer each acknowledge that the Development Contract is its valid, legal, binding and enforceable obligation, and, as of the date hereof, has not been assigned (except to the Developer as described in the Recitals),. modified, supplemented or amended (except as described in the Recitals). 4. To the best of the Authority's knowledge and to the best of the Developer's knowledge, no Event of Default (as defined in the Development Contract) or event, which with the passage of time or the giving of notice, or both, would be such an Event of Default, has occurred and is continuing under the Development Contract as of the date hereof. 5. If an Event of Default (as defined in the Development Contract) shall occur under the Development Contract, the Authority shall give written notice thereof to the Lender and the Lender shall have-the right, but no obligation, #o cure such Event of Default within a reasonable time thereafter. Any notice given to the Lender pursuant to this Paragraph 5 shall be sent by certified or registered mail to the Lender at the following address: First Bank National Association First Bank Place - MPFP0802 601 Second Avenue South Minneapolis, Minnesota 55402-4302 Attention: Real Estate Banking Division Head. 6. The Authority acknowledges receipt of copies of the Lender Mortgage, the Lender Assignment of Rents and the Lender Loan Agreement and acknowledges that the Lender Mortgage, the Lender Assignment of Rents, the Lender Loan Agreement and the development of the Premises contemplated by the Lender. Loan Agreement are authorized by and approved under the Development Contract. 7. The Lender agrees to provide written notice to the Authority of the occurrence of an event of default on the part of the Developer under the Lender Loan Agreement or the Lender Mortgage prior to commencing any foreclosure proceeding. with respect to the Premises or prior to accepting a deed in lieu of foreclosure with respect to the Premises. Any notice given to the Authority pursuant to this Paragraph 7 shall be sent by registered or certified mail to the Authority at the following address: . • -5- The Housing and Redevelopment Authority in and for the City of Richfield 6700 Portland Avenue South Richfield, Minnesota 55423 Attention: Executive Director. 8. During the forty-five (45) day period (the "Option Period") commencing on the date when the Lender sends to the Authority the written notice described in Paragraph 7 above, the Authority shall have the option to purchase the Lender Loan and the related Lender Loan Documents from the Lender, without representation or recourse of any. kind by the Lender and pursuant to assignment documentation acceptable to the Lender, for a purchase price equal to the outstanding principal balance of the Lender Loan. plus all accrued and unpaid interest thereon and any other premiums, penalties, fees, costs and expenses owing to the Lender under the Lender Loan Documents as of the date of funding of such purchase. The Authority acknowledges and agrees that the Lender may. commence foreclosure proceedings and may exercise other rights and remedies available to the Lender under the Lender Loan Documents during the Option Period; provided, however, that the Lender shall not accept a deed in lieu of foreclosure with respect to the Premises until after the expiration of the Option Period. The Authority further acknowledges that if the Authority elects to exercise its option to purchase the Lender Loan under this Paragraph 8, the funding of such purchase must occur prior to 5:00 p.m. (Minneapolis time) or the last day of the Option Period. The Lender further agrees that during the Option Period, the Authority may propose for the Lender's consideration a substitute developer who, among other things, would assume all of the obligations of the Developer under the Development Contract and under .the Lender Loan Documents; provided, however, that the Lender shall have no obligation to either consider or accept any such substitute developer, and, provided, further, in the event that the Lender, in its sole .discretion, shall. determine to consider or accept such substitute developer, such consideration and/or acceptance shall be on such terms as the Lender shall determine in its sole discretion. 9. If, following any event of default (as defined under the Lender Loan .Agreement or the Lender Mortgage) under the Lender Loan Agreement or the Lender Mortgage, the. Lender obtains title to the Premises through foreclosure or by accepting a deed to the Premises from the Developer, the Authority agrees that upon expiration of all redemption periods, in the case of a foreclosure, or upon the recording of such deed, in the case of a deed in lieu of foreclosure, as the case may be, all rights and interests of the Authority under the Development Contract and in and to the Premises under the Development Contract, under the Authority Mortgages or otherwise, including, without limitation, all restrictive covenants contained therein, shall be automatically null and void without the need for the execution or . recording of any other document; provided, however, that at the written. request of -6- • the Lender, the Authority shall exeCUt~ such documents evidencing the full termination, satisfaction and/or release thereof as the Lender may reasonably request. 10. The Authority acknowledges that the Developer has been selected as the developer for the Phase II Property. The Authority further acknowledges that in accordance with the provisions of Section 3.2A(e) of the Development Contract, the Authority has notified the Developer in writing to proceed with Phase II under the Development Contract. 11. The Authority represents to the Lender and the Developer that the making, delivery and performance of this Agreement have been duly authorized by all necessary action and this Agreement, when executed and delivered, shall be the valid and binding obligation of the Authority, enforceable in . accordance with its terms. ~ " 12. The Lender represents to the Authority and the Developer that the making,. delivery and performance of this Agreement have been duly authorized by all necessary action, and, when executed and delivered, will constitute the legal, valid and binding obligation of the Lender enforceable in accordance with its terms. 13. The. Developer represents to the Authority and the Lender that the making, delivery and performance of this Agreement have been duly authorized by all. necessary action, and, when executed and delivered, will constitute the legal, valid and binding obligation of the Developer enforceable in accordance with its terms. ' 14. -The Authority, the Developer, and the Lender acknowledge that the Lender is not a party to the Development Contract and that this Agreement, and the Assignment of Development Contract by the Developer to the Lender of even date herewith, contain the entire Agreement between the Authority and the Lender with respect to any rights or obligations either might otherwise have with respect to the other under the Development Contract and under the Authority Mortgages, and that this Agreement may be amended only in writing signed by the parties hereto. By executing and delivering this Agreement, the Lender shall not incur any obligations to the Authority or to the Developer of any kind whatsoever, except those to the Authority which are expressly set forth herein, and the Lender may administer its extension of credit under the Lender Loan Documents in such manner as it shall deem appropriate without any notice to or consent from the Authority. 15. The Authority agrees that the Lender, at any time and from time to time, may extend the maturity, modify the interest rate or agree to alter any of the -7- terms of payment of the Lender Loari evidenced by the Lender Loan Documents, or release parties liable for payment thereof, or alter, amend, waive or supplement, in any way, any of the terms and provisions of the Lender Loan Agreement, the Lender Mortgage, the Lender Assignment of Rents and all related documents, all without any notice to or consent of the Authority. 16. This Agreement shall be binding upon and inure to the benefit of the Authority, the Lender and the Developer and their respective successors and assigns. Executed as of the day and year first above written. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD By Its Chairperson By Its Executive Director FIRST BANK NATIONAL ASSOCIATION, a national banking association By Its CSM IlVVESTORS, INC. By Its- • -8- ~! STATE OF MINNESOTA COUNTY OF )" ss. The foregoing instrument was acknowledged before me this day of .1996, by ,the Chairperson and . the Executive Director. of The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, on behalf of said Authority. Notary Public STATE OF MINNESOTA ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of . 1996, by . a of First Bank National Association, a national banking association, on behalf of said association. Notary. Public STATE. OF MIlVNESOTA ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of . 1996, by ,the of CSM Investors, Inc., a Minnesota corporation, on behalf of said corporation. Notary Public This instrument was drafted by Dorsey & Whitney LLP 220 South Sixth Street Minneapolis, Minnesota 55402 -9- HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 64 Agenda October 7, 1996 • Issue Statement: Public hearing and authorization to sell 2513 West 70th Street to Variety Homes, Inc. for Richfield Rediscovered single. family home development. Background: The HRA acquired 2513 West 70th Street (7001 Sheridan. Avenue was subdivided into 2513 and 2517 West 70th Street) for the Richfield Rediscovered Program's new home development. It is proposed that the HRA sell the identified property to Variety Homes, Inc. in accordance with a development agreement. The development agreement is similar in form and content to those. used previously for the Richfield Rediscovered Program. The new home at 2513 West 70th Street will be a three bedroom, two bath home. Its estimated value is $130,000. The buyers are residents of New Ford. Town. Recommended Motion: Following a public hearing, adopt the resolution authorizing the sale of 2513 West 70th Street to Variety Homes, Inc.. and the execution of appropriate documents by the HRA Chair and Executive Director. Basis of Recommendation: 1. The builder has evidenced experience, capability, and financial security. Variety Homes, Inc. is building under the program for the first time. 2. The HRA acquired 2513 West 70th Street for the Richfield Rediscovered Program. 3. The terms of the development agreement have been negotiated and are in conformance with program guidelines. 4. Notice of public hearing on sale of the property was published September 25 in the Sun Current. Alternative Recommendation: Do not proceed with the development agreement with Variety Homes, Inc. and direct staff to find other buyers. Discussion/Decision Mode: Closing would occur in early October with construction starting soon afterwards. The site clearance work should be completed shortly. Respectf submitted, Jame rosser Exec Director JDP:cak • HRA RESOLUTION NO. RESOLUTION AUTHORIZING THE SALE OF REAL • PROPERTY LOCATED AT 2513 WEST 70TH STREET TO VARIETY HOMES, INC., IN ACCORDANCE WITH A DEVELOPMENT AGREEMENT 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 follows: Address Legal Descri tp ion 2513 West 70th Street The East 66 feet of that part lying north of the south 130 feet and lying south of the north 30 feet of Lot 7, Sabin Lake Harriet Garden Lots Addition WHEREAS, the HRA is authorized. to sell real property within its area of operation after public hearing; and WHEREAS, a purchaser of the described property has been identified and a development agreement negotiated as follows: Performance Ad r s Sale Price ri Buil r • 2513 West 70th St. $32,000 ..$32,000 Variety Homes, Inc. 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: 1. A public hearing has been held and 2513 West 70th Street is authorized to be sold for $32,000 to Variety Homes, Inc. in accordance with a development agreement with the H RA. 2. The Chairperson and Executive Director are authorized to execute a Contract for Private Development and other agreements as required to effectuate the sales to Variety Homes, Inc. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 7th day of October 1996. Thomas E. Harms, Chair ATTEST: • Vern Luettinger, Secretary Z O Q w J W H LL W J Z O a W J W F- ~_ • • r V -~~ d /' _~ ~~ a;®,. .,..~ '__. ,, ~.;o, N ' r 1 ~r d:, +; ~ ~r .p 1 I Ga . I e r 5 1 r ~'~ a ~ "~ a f ~ _ ~ ~ . j w f ' ;•~Q . ~ I. ;ter--- r,.. - = d l ~~ , -P 1• ~ , ~ , ,~ ~. ~~ ~~ ~ ~ I a ~ _ ~ ~~ % i7 ~ ~ ;? i ` i~ 3 ~ S ~ t! 3 = I _ ~ __~ s ~ ---- - -- - ~ 3 ~ ' "` ~ ;,1~-_ I, 3 ~ - . - .......~ ~ -3I r L y s•~6 a'9I ,W W J Q 1 ___ Z W W a m HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 63 Agenda October 7, 1996 Issue Statement: Consideration of marketing initiatives to New Ford Town and Rich Acres residents. Back r n Since the beginning of the buyout process by the Metropolitan Airports Commission (MAC), the HRA has expressed its desire to retain as many of those residents as possible in Richfield. For example, in July 1993, the HRA reviewed a proposal submitted to MAC by the City of Richfield, #o administer the buyout of those neighborhoods. (W.D. Schock Co. was later awarded that contract.) In November 1993, the HRA encouraged staff to specifically market new construction opportunities to NFT/RA residents. When the Transformation Homes Program was first considered in January 1994, the HRA also suggested that NFTIRA residents be informed specifically about that opportunity. In March 1994, the HRA considered a marketing strategy to generally encourage NFT/RA residents to relocate in Richfield. Attached is a list of efforts made to provide information and resources to those residents. General feedback from the residents has been that they have appreciated the information and attention directed toward them. Most marketing directed- toward the buyout residents has been information related to on-going programs which are readily available to the general public. One exception to this relates to marketing of the Richfield Rediscovered Program. NFT/RA residents have been allowed a two week window of opportunity to see and reserve lots prior to the general Richfield Rediscovered mailing list. After the two weeks expire, buyout residents receive no preference over the rest of the public. Twelve NFT/RA have built or are committed to building under the Richfield Rediscovered Program. Recommended Motion: Continue focused marketing to New Ford Town and Rich Acres residents until completion of buyout. Basis of Recommendation: 1. The buyout is nearly complete. As of September 5, 1996, 50 acquisition closings remained out of the original 341 households to be purchased. 2. All previous residents have received targeted marketing on all programs available to them through the Richfield HRA. • 3. The Richfield Rediscovered Program is in high demand and operates on a first come, first served basis. A two week window of preference is reasonable but not excessive. 4. W.D. Schock believes the buyout will be completed early in 1997. Alternative Recommendation: Cease direct marketing to remaining New Ford Town and Rich Acres residents. Discussion/Decision Mode: It is anticipated that a mailing of lots available would be mailed out before year end. Respectful submitted, James rosser Executive Director JDP:cak r C7 ~. RESOLUTION N0. 5238 A RESOLUTION DECLARIlJG THE NEED FOR A HOUSING AND REDEVELOPMENT AUTHORITY IN RICHFIELD, MINNESOTA WHEREAS, Published notice has been given to all residents of Richfield, Minnesota and its environs and to all other interested persons of a public hearing to be held by the Richfield City Council at Richfield, Minnesota, to determine the need for a Housing and Redevelopment Authority to function in Richfield, and WHEREAS, Pursuant to such published notice a hearing was held by the City Council of the City of Richfield, Minnesota to determine the need for a Housing and Redevelopment Authority in Richfield, and WHEREAS, Facts have been submitted to this Council showing that there is a need for a Housing and Redevelopment Authority to function in the City of .Richfield, Minnesota. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota as follows; The City Council herewith finds and determines: 1. There exists in the City of Richfield, Minnesota substandard or deteriorated areas which cannot be redeveloped without the assistance of government. 2. Adequate housing accommodations are not available to veterans and servicemen and their families. 3. There is a shortage of decent, safe and sanitary dwelling accommodations available to persons of low income and their families at rentals they can afford. 4. It is hereby declared that there is a need for a Housing and Redevelopment Authority to function in the City of Richfield, Minnesota, and said need continues to exist. Passed by the City Council of the City of Richfield this 23rd day of September, 1973. Loren L. Law Mayor ATTEST: Thomas J. bioran City Clerk ~ BYLAMS OF THE HOUSING ANO REDEVELOPMENT AUTHORITY OF RICHFIE~p~ MINNESOTA ARTICLE I - THE AUTHORITY Section 1. Name of Authority. The~name of the Authority shall be the "Housing and Redevelopment Authority of Richfield, Minnesota". Section 2. Seal o'f Au~tho•rit The seal of the Authority shall be in the. form of a c rci le and shall bear the name of the Authority. • Section 3. Office of Authorit The offices of the Authority shall be at C ty Hall in the City of Richfield, Minnesota, but the Authority may hold its meetings at such other place or places as it may designate by resolution. ARTICLE II - OFFICERS Section 1. Officers. The officers of the Authority shall be a Chairman, a Vice-Chairman, and a Secretary. Section 2. Chairman. The Chairman shall preside at all meetings of the Auth-or'-'~ y, Except as otherwise authorized by ~~ resolution of the Authority, the Chairman s~iall sign all contracts, deeds and other instruments made by the Authority. At each meeting the Chairman shall submit such recommendations and information he may consider proper concerning the business, affairs and policies of the Authority. Section 3: Vice-Chairman. The Vice-Chairman shall perform the duties of the Chairman in the absence or incapacity of the Chairman; and in case of the resignation or death of the Chairman, the Vice-Chairman shall perform such duties as are imposed on the Chairman until such time as the Authority shall select a new Chairman. Section 4. Secretar The Secretary shall perform the duties of a Secretary or the Authority. Section 5. Executive Director. The Authority shall employ an Executive Director who shal have general supervision over the administration of its business and affairs, sub3ect to the direction of the Authority. H.e shall be charged with the management of the housing pro3ects of the Authority. Section 6. Other Administrative Officers. The Authority may designate an assistant to the Secretary who shall keep~the records of the Authority, shall act as recorder of the meetings of the Authority and record all votes, and shall keep a record of ,~ the proceedings of the Authority~in a journal of he kept for such purpose, and shall perform all dutieseinc9hental 1 a C to his office. He shall keep in safe custody the seal of the Authority and shall have~powe'r to affix such seal to-all contracts and instruments authorized to be executed by the Authority. - The Authority may designate a Treasurer who shall have the care and custody of all funds.of the Authority and shall deposit' the same in the name of the Authority in~such bank ar banks as the Authority may select. The Executive Director and Treasurer shall sign all orders and checks for the payment of money and shall pay out and disburse such moneys under the direction of the Authority. Except as otherwise authorized by resolution of the Authority, all such orders and checks shall also be~countersigned by the Chairman. The Treasurer shall keep regular books of accounts showing receipts and expenditures and shall render to the Authority, at each regular meeting {or more often when requested), an account of his transactions and also of the financial condition of .the Authority. He shall give such bond for the faithful performance of his duties as the Authority may determine. ARTICLE III -MEETINGS Section 1. Annual Meeting. The annual meeting. of the Authority shall be held on the third Tuesday in January at 7:00 l P.M. at the regular meeting place of the Authority. . J Section 2. Regular Meetings. Monthly meetings shall be held without notice at the regular meeting place of the Authority on the third Monday of each month, at 7:00 P.M. unless the same shall be a legal holiday, in which event said meeting shall be held on the next succeeding secular day. Section 3. Special Meetings. Special meetings of the ! Authority may be called by the Chairman, or two members of the ~ Authority for the purpose of transacting any business designated in the call. The call for a special meeting may be delivered at any time prior to the time of the proposed meeting to each member of the Authority or may be mailed to•the business or home•address of each member of the Authority at least two (2) days prior to the date of such••special meeting. At such special meeting no business shall be considered other than as designated in the call, but if all of the members of the Authority are present at a special meeting, any and all business may be transacted at such special meeting. Section 4. quorum. The powers of the Authority shall be ` vested in the Commissioners thereof in office from time to time. ~ Three Commissioners shall constitute a quorum for the purpose of conducting its business and exercising its powers and for all ~ other purposes, but a smaller number may adjourn from time to time until a quorum is obtained. when~a quorum is in attendance, ~ action may be taken by the Authority upon a vote of a majority of the Commissioners present. 2 ,. "1 Section 5. Order of Business. At the regular meetings of the Authority the o lowing sha be the order of business: 1. Roles Call. ~~ 2. Approval of the Minutes of the Previous Meeting. 3. Reports of the Executive Director. 4.~ Unfinished Business. 5. New Business 6. Adjournment. All resolutions shall be in writing and shall be copied in the journal of the proceedings of the Authority. Section 6. Manner of Voting. The voting on all questions coming before-the Authority shall be by roll call, and the yeas and nays shall be entered upon the minutes of such meeting. Section 7. Combinin Administrative Offices: Com ensation. The compensation of the Executive irector and other personnel of !~ the Authority shall be determined by the Authority. Any two or more administrative offices may be combined. Section 8. Additional Duties. The officers of the Authority shall perform such other duties and functions as may from time to time be required.by th.e Authority or the bylaws or rules and regulations' of the Authority. Section 9. Election or Appointment. The first Chairman shall, pursuant to his appointment, serve in the capacity of Chairman until the .expiration of his term of office as Commissioner. The Vice-Chairman, Secretary and, except fn the case of the First Chairman, the Chairman shall be elected at the annual meeting of the Authority from among the Commissioners of the Authority, ar~d shall hold office for one year or until their successors are elected and qualified. The Executive Director shall be appointed by the Authority. Any person appointed to fill the office of Executive Director or any vacancy therein, shall have such term as the~Authority fixes,. but no Commissioner of the Authority shall be eligible for 'this office. Section 10. Vacancies. Should the office of Chairman, Vice-Chairman or Secretary become vacant, the Authority shall elect a successor from its membership at the next regular ~ meeting, and such election shall be for the unexpired term of said office. 3 HRA Meeting Minutes -8- March 21, 1994 ITEM #11 CONSIDERATION OF STATUS REPORT ON TAX INCREMENT DISTRICTS, HRA LETTER NO. 19 Executive Director Prosser reviewed HRA Letter No. 19 regarding the status report of tax increment districts. Mr. Sid Inman,"Publicorp, presented the status report on the tax increment districts. He stated that the reserves are strong and that the financial position is stronger than originally projected last year. ' Commissioner Susag asked where the $500,000 and $100,000 for the CSM Project are coming from: Mr. Inman .suggested that it come from the over $1 million of unspent bond proceeds in the ILN. Larry Wozniczka, 6744 Wentworth, asked how the LHN district. is contributing 5500,000 annually when there are annual negative figures projected. Mr. Inman stated that the negative figures are annual projections that do not consider accumulated cash balances. Thus, there are not. real negative figures. Chair Harms stated that the report is accepted. -ITEM #12°: CONSIDERATION OF MARKETING STRATEGY FOR RESIDENTS OF NEW ~" FORD TOWN AND RICH ACRES, HRA LETTER NO. 20 .Executive Director Prosser reviewed HRA Letter No. 20 regarding consideration of marketing strategy for residents of New Ford Town and Rich Acres. Mr. Prosser stated that he believes that Schock and Company -are marketing Richfield to NFT residents. Mr. Palmborg, Housing and Redevelopment Coordinator, stated that he was informed that residents in NFT felt good about the attention they were getting from City Hall. .Mayor Martin Kirsch stated that he went on the recent bus tour and felt that participants were made aware of the many • opportunities available in Richfield. HOUSING AND REDEVELOPMENT AUTHORITY ( HRA Letter No. 20 Agenda March 21, 1994 Issue Statement: Marketing strategy for residents of New. Ford Town and Rich Acres. Background: The HRA requested staff to formulate and implement a marketing strategy to be .directed toward-the residents of New Ford Town (NFT) and Rich Acres (RA). The purpose of the strategy is to encourage the residents to relocate within Richfield. There are approximately 419 households in the area. To be effective, the marketing program should recognize at least four significant points: 1. The relocation process will continue for three-five years. 2. Approximately 76$ of the households are owner-occupants. 3. The NFT/RA population is socially and economically diverse. 4. Richfield is an attractive viable community with a variety of housing opportunities some of which are provided through HRA programs. Because the relocation process will continue for several years, the marketing program will be on-going. The initial program formulation contains these elements: Introduction of W D Schock Representatives to the Community, i February 3, 1994 Informational meeting and bus tour for W.D. Schock representatives. The meeting was an opportunity to present HRA programs and respond to questions. The bus tour introduced the representatives to the community and the housing opportunities offered by HRA programs. Richfield Housing Opportunities Fair February 16, 1994 The NFT and RA residents were invited to the fair at City Hall. Not only were HRA programs presented, but representatives of Woodlake Point and Lake Shore Drive condominiums were present as well as representatives of Market Towers apartments. The newly formed Richfield Apartment Managers Association (RAMA) was also represented. People were asked to fill out a housing preference card indicating the type of housing they were seeking together with an indication of their community preference, Richfield or another community. . February 4 - A letter was mailed to all NFT/RA residents announcing the fair. February 10 - A brochure. was mailed to all NFT and RA residents as a follow-up to the February 4 letter. Bus Tour March 12. 1994 A bus tour similar to that provided the Shock representatives was scheduled. Sign-up for this event was offered at the fair and through a follow-up invitation mailed on March 2, 1994. Residents in attendance numbered 35. They stated that they were grateful for the. attention they are receiving, surprised by all the construction. activity throughout the City and are interested in staying in Richfield. Newsletter, April 1994 A newsletter will be mailed from time to time to NFT/RA residents. The first issue will feature an interview with a family which relocated from the 77th Street Project to a new Richfield Rediscovered house. Information System To more effectively encourage people to relocate within Richfield, it is important to provide information quickly and clearly. One staff person has been designated to field Richfield housing inquiries from NFT and RA residents. With this organizational feature, it will also be possible to establish a working relationship with residents as they think through their preferences and eventually relocate. Recommended Motion: Respond to staff with reactions to the .initial marketing program. Basis of Recommendation: 1. The HRA requested staff to initiate a marketing program. 2. The proposed elements have been formulated to encourage. all NFT and RA residents to relocate within Richfield. 3. The elements will present all housing options available in Richfield. Alternative Recommendation: Modify the program by deleting or adding events. Discussion/Decision Mode: The program is now being implemented. Resp~ lly submitted, ;~ Jamesi Prosser Execut ve Director JDP:ds s • CITY OF RICHFIELD, MINNESOTA HOUSING AND REDE~IELOPMENT AUTHORITY MEETING • July 19, 1993 HRA MEMBERS PRESENT: Thomas Harms; Joan Helmberger; Russ Susag; • Vern Luettinger; and Larry Wozniczka. STAFF PRESENT: Steven Devich, Acting Executive Director/ Acting City Clerk; Byron Wallace, Community • Development Director; and Bruce Palmborg, • Housing and Redevelopment Coordinator. The meeting was called to order by Chair Harms at 7:00 p.m. APPROVAL OF MINUTES HRA Commissioner Wozniczka requested that the minutes of the June 21, 1993 HRA meeting be amended on page 3, Item #4 to read: "Commissioner Wozniczka asked Mayor Kirsch why he felt the house must be demolished.." and amended on page 5, Item #6 to read: "Commissioner Wozniczka stated that a certificate of completion verifying the developer's agreement remains to be approved and that. Commissioner Luettinger's concern about soft drink•machines and pedestrian access and safety are matters also needing. review." and "Chairman Harms said that•he believed a certificate of completion had been approved by HRA Commissioners. Secretary Wozniczka agreed to review the minutes and report to the Chairman." M/Wozniczka, S/Luettinger to approve the minutes of the HRA meeting of June 21 1993 as amended. • Motion carried 5-0. ITEM #1 OPPORTUPTITY~FOR CITIZENS TO ADDRESS THE HRA No one wished to address the HRA. ITEM #2 REVIEW OF HRA/VO-TECH NEW HOME PROGRAM PARTNERSHIP, HRA LETTER NO. 29 • HRA Minutes -2- July 19, 1993 Acting Executive Director Devich reviewed HRA Letter No. 29 regarding review of HRA/Vo-Tech New Home Program partnership. Commissioner Susag asked if the HRA had an ongoing contract with Vo-Tech.. . Community Development Director Wallace responded that it was on a project by project basis. Chairman Harms stated .that in the past staff had prepared a survey of homes in the community, especially indicating garage homes and substandard residences that may~need attention. He added that it would be valuable to have a staff update of that survey. Commissioner Helmberger asked if Vo-Tech would be interested in some type of a remodeling program such as is referenced in HRA Letter No. 29. • Mr. Wallace responded .that Vo-Tech is flexible and willing. to work with the HRA in that type of program if it was desired. Commissioner Luettinger asked if Vo-Tech may be interested in some type of a senior home repair type of program. Mr. Wallace responded that he was not certain but that such a program may compete with private sector doing the same type of work and, as such, .may not be desirable to Vo-Tech. Commissioner Susag asked what constraints there are in the program and if the program with Vo-Tech could include some remodeling on multiple dwelling units. Mr. Wallace responded that there are no specific constraints in the program. He stated that there may be some ability to work on some smaller multiple dwelling units such as duplex or fourplex units. However, work on larger multiple dwelling units would not appear~to be feasible. Chairman Harms stated that he felt the relationship between the HRA and Vo-Tech is especially important now in. the light of the future New Ford Town and Rich Acres buyout. He added that there could be a demand for expanded housing in Richfield in the very near future. Mr. Harms also stated that the updated survey of the. community would be very helpful in addressing future needs of the program. Acting Executive Director Devich stated that irrespective of. which program was utilized by the HRA, it was important ~to recognize that~the relationship between.Vo-Tech and the HRA is a very valuable resource for the community. He added that if Richfield's association with Vo-Tech was not continued, some other community would quickly move to utilize the Vo-Tech resource. HRA Minutes -3- July 19, 1993 Commissioner Wozniczka stated that he felt that the motion contained in the HRA letter did not address CDBG funding. He also felt that the objectives included. in the Vo-Tech program should not preclude previous home buyers and should include lowering the•income limits below the 60$ level. Chairman Harms responded that. he felt the program has been, targeted to first time home buyers. and helping Richfield residents.• He stated that he did not feel that the HRA should make any significant changes in the program at this time including modifying the income guidelines. Mr.~Harms stated that the New Home Program implemented .with Vo-Tech seems to have had a much bigger impact on neighborhoods than the previous remodeling programs. Commissioner Luettinger stated that he felt the New Home Program with the Vo-Tech has been an excellent program and felt he would not like to see the program changed. There was general .discussion concerning the direction of the • program and of the need for an updated survey identifying• potential problem housing areas in the community as well as areas that have been improved by previous and current HRA projects. It was the general direction of the HRA that no major- changes in the Vo-Tech program be made at this time and the staff report back to the HRA at the next meeting. with updated information regarding the community survey discussed. ITEM. #3~<:,EXECUTIVE DIRECTOR REPORT • ~, ,. _ _ Acting Executive Director Devich stated that there was a project status update of a number of current HRA items contained in HRA Memorandum No. 12. Mr. Devich highlighted the New Ford Town and Rich Acres buyout and stated that the City had submitted a proposal to a MAC Request for Qualification concerning the buyout of New Ford Town and Rich Acres. Chairman Harms briefly reviewed a portion of the Richfield submission and stated that the buyout of New Ford Town and Rich Acres could closely tie with the previously discussed Vo-Tech program. Mr. Harms felt that this was a golden opportunity to retain a number•of people from the New Ford Town and Rich Acres area in the community in new or upgraded housing. Commissioner Wozniczka stated that he was concerned about the City submitting a proposal for the administration of the New Ford Town and Rich Acres buyout. He stated that he was • specifically concerned about how the City would negotiate with itself to pay for the City's •infrastructure that would.be removed from New Ford Town and Rich Acres. HRA Minutes -4- July 19, 1993 Community Development Director Byron Wallace stated that the value of the infrastructure in New Ford Town and Rich Acres would be determined by third party appraisers and that the issue of the City administering the buyout would not cause a problem with the reimbursement for-infrastructure.. Acting Executive Director Devich stated that he felt that the infrastructure purchase was not a problem and that in the buyout process under consideration only seven homes are not included in the City of Richfield. He stated that the .City of Richfield is in the best-position to handle the administration of the MAC buyout and to deal with the 400 or so Richfield homes. that are being affected by the buyout. Commissioner Luettinger asked when the MAC would meet to award the contract. Housing and Redevelopment Coordinator Bruce Palmborg responded that HRA Commissioners would be informed of the date ~:.d the time of the MAC's action awarding this contract. Commissioner Luettinger asked about the status of the Menards/ChiChi's parking lot issue.. Mr. Wallace reported on the status of the issue. and stated that Lutheran Brotherhood and ChiChi's are now talking to each other concerning the resolution of the parking problem. ITEM #4 CLAIMS AND PAYROLL . Commissioner Wozniczka asked about a payment to .Koval Appliances. Mr. Wozniczka stated that he didn't think they were still in business. Mr. Wallace responded that they are in business and operating in St. Louis Park. Mr. Wozniczka then questioned a purchase of computer. software from the Nan/McKay Company. Mr. Devich responded that the software purchase was in conjunction with the HRA administered Section 8 program..- . M/Luettinger, S/Sus,ag that the following claims and payroll be approved . - - FIRSTAR BANK. Checks: HRA: 5354-5462; 11367-11383; 11914-11953 $37.8,061.14 Section. 8: 1068 - $ 88,000.00 HRA Minutes ~ -5- July 19, 1993 Motion carried 5-0. Commissioner Wozniczka distributed a letter to the HRA . concerning the matter of the Hub West certificate of completion (Clerk File C-341). ADJOURNMENT The meeting was adjourned by unanimous consent at 7:59 p.m. Date Approved: Thomas Harms ~ Chair Steven L. Devich Acting. City Clerk Steven L. Devich Acting Executive Director • HRA Minutes -2- November 15, 19.93 ITEM #2 OATH OF OFFICE TO HRA COMMISSIONER MICHAEL SANDAHL Acting City Clerk Devich administered the Oath of Office to HRA Commissioner Michael Sandahl. ITEM #3 OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA No one wished to address .the HRA. ITEM#4 CONSIDERATION OF .APPOINTMENT OF HRA SECRETARY TO FILL VACANCY, HRA LETTER NO. 45. Commissioner Vern Luettinger was appointed the Secretary of the HRA. ' M/Susag, S/Helmberger to a~orove the aDVOintment of Commissioner Vern Luettinger as Secretarv of the HRA. Motion .carried 5-0. ITEM.#5 CONSIDERATION OF REPORT ON THE STATUS OF BLIGHTED HOUSING, HRA LETTER NO. 46. Executive Director Prosser reviewed HRA Letter No. 46 regarding consideration of a report on the status of blighted housing in the community. Commissioner Luettinger asked how a more systematic survey would be conducted. Mr. Prosser responded that there are a number of ways including direct mail, meetings and other methods. Chair Harms asked what the average cost per home for NFT/RA buyout including appraisal and relocation benefits is. .Community Development Director Wallace responded that the average person should be able to upgrade their next home by 520,000 to 530,000. HRA Minutes -3- November 15, 1993 Chair Harms stated that this represents an excellent opportunity for the City and HRA. He suggested that the HRA: • Locate three developers. • Look at a group of sites to put together a set of floor plans to propose to the people in NFT/RA who choose to relocate in Richfield. • Give these developers first chance to work with these people. • Have staff obtain pictures and addresses of 100 houses to be redeveloped in Richfield. Commissioner Susag asked how many of the substandard homes are in NFT/RA. Bruce Palmborg, Housing and Redevelopment Coordinator, said that none of the houses were in NFT/RA. Commissioner Luettinger stated that he concurred with Chair Harms on the concept he described. Commissioner Sandahl asked how many homes were turned over in a year. Mr. Wallace stated that 30 homes were turned over in the past two years under. all the housing programs the HRA has available. M/Harms, S/Susag to continue to monitor the status of blighted housing in Richfield,. encourage its reduction and take action on marketing methods suggested by Chair Harms. Motion carried 5-0. ITEM #6 CONSIDERATION OF RESOLUTION APPROVING CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN HRA AND RICHFIELD STATE AGENCY, INC.; LHN REDEVELOPMENT PROJECT, HRA LETTER NO. 47 Executive Director Prosser introduced Jan Susee and Steve Kirchner of Richfield State Agency. Mr. Susee reviewed a proposed contract for private development between HRA and Richfield State Agency, Inc. in the LHN Redevelopment Project. The project is for an urgent care facility in a two story medical office facility. • CITY OF RICHFIELD, MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY MEETING January 18, 1994 HRA MEMBERS PRESENT: STAFF PRESENT: Thomas Harms; Joan Helmberger; Russ Susag; Vern Luettinger; and Michael Sandahl. James Prosser, City Manager; Thomas Ferber, City Clerk; and Bruce Palmborg, Housing & Redevelopment Coordinator. The meeting was called to order by Chair Harms at 7:00 p.m. APPROVAL OF MINUTES M/Sandahl, S/Luettinger to a~orove the minutes of the Re._gular HRA Meeting of December 20. 1993. Motion carried 5-0. It was the consensus of HRA Commissioners to allow the presentation of the CSM Status Report, which was scheduled as Agenda Item #9, to be first on the agenda. Item #1 OPPORTUNITY FOR CITIZENS TO ADDRESS THE IiRA ON ANY ITEM NOT LISTED ON THE AGENDA. No one wished to address the HRA. Item #2 CONSIDERATION OF ELECTION. OF OFFICERS FOR 1994. HRA LETTER NO. 1 M/Luettinger, S/Helmberger to a~orove the election of Tom Harms as Chair of the HRA for 1994. Motion carried 5-0. M/Harms, S/Susag to approve the election of Joan Helmberaer as Vice Chair of the HRA for 1994. Motion carried 5-0. M/Harms, Susag to approve the election of Vern Luettinger as ~, Secretarv of the HRA for 1994. Motion carried 5-0. HRA Meeting Minutes -2- January 18, 1994 Item #3 CONSIDERATION OF DESIGNATION OF ACTING EXECUTIVE DIRECTOR FOR 1994. HRA LETTER NO. 2 M/Helmberger, S/Luettinger to approve the designation of Motion carried 5-0. Item #4 CONSIDERATION OF DESIGNATION OF OFFICIAL NEWSPAPER FOR 1994. HRA LETTER NO. 3 M/Luettinger, S/Sandahl to approve the designation of the Richfield Sun Current as the official newspaper of the HRA for the year 1994. Motion carried 5-O. Item #5 CONSIDERATION OF RESOLUTIONS DESIGNATING OFFICIAL DEPOSITORIES FOR 1994, INCLUDING APPROVAL OF COLLATERAL. HRA LETTER NO. 4 M/Sandahl, S/Helmberger that the following resolutions be adopted• that it be spread in the resolution book and_that it be made part of these minutes: HRA RESOLUTION NO. 494 A RESOLUTION DESIGNATING CERTAIN SAVINGS AND LOAN ASSOCIATIONS AND BANKS AS DEPOSITORIES FOR THE INVESTMENT OF THE HOUSING AND REDEVELOPMENT AUTHORITY FUNDS IN 1994 Motion carried 5-O. This resolution appears as HRA Resolution No. 494 in Resolution Book No. 4. HRA RESOLUTION NO. 495 A RESOLUTION DESIGNATING CERTAIN FINANCIAL INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF THE HOUSING AND REDEVELOPMENT AUTHORITY FUNDS IN 1994 Motion carried 5-0. This resolution appears as HRA Resolution No. 495 in Resolution Book No. 4. YHRA Meeting Minutes -3- January 18, 1994 HRA RESOLUTION NO. 496 A RESOLUTION DESIGNATING THE FIRSTAR BANK A DEPOSITORY OF FUNDS OF THE HOUSING AND REDEVELOPMENT AUTHORITY FOR RICHFIELD FOR THE YEAR 1994 AND APPROVING COLLATERAL Motion carried 5-0. This resolution appears as HRA Resolution No. 496 in Resolution Book No. 4. Item #6 CONSIDERATION OF AUTHORIZATION FOR STAFF TO DRAFT AGREEMENT WITH TOLD DEVELOPMENT COMPANY TO MARKET AND FACILITATE REDEVELOPMENT OF CLOVERLEAF SITE. HRA LETTER N0. 5 Executive Director Prosser .reviewed HRA Letter No. 5 regarding a proposal from TOLD Development Company to market and facilitate redevelopment of the Cloverleaf site. Chair Harms raised issues regarding the financial impact on the feasibility of developing-the property of having a potential developer go through TOLD. He suggested that the agreement be non-exclusive so as not to discourage a potential developer-from proposing a development independently to the HRA. Executive Director Prosser discussed three options: 1) continue to passively market the property, 2) solicit proposals from other developers, 3) negotiate a non-exclusive agreement with TOLD Development Company. Commissioner Sandahl questioned whether TOLD would accept a non-exclusive agreement. Executive Director Prosser suggested that staff would seek to negotiate an escape clause with a 30 day notice of termination and that if the HRA chose a new developer, the reimbursement costs could come from the earnest money of the new developer. M/Harms, S/Sandahl to authorize staff to draft an agreement as directed for subsec,Luent presentation to the HRA which would establish the parameters for a marketing and development program to be implemented ~ the TOLD Development Company. Motion carried 5-0. HRA Meeting Minutes -4- January 18, 1994 Item #7 CONSIDERATION OF RESOLUTION TO CONFORM LYNDALE/HUB/ NICOLLET COMMERCIAL DEVELOPMENT IMPROVEMENT PROGRAM WITH RSA MEDICAL OFFICE FACILITY APPROVED DURING LAST QUARTER OF 1993; MODIFICATION NO. 7. HRA LETTER NO. 6 Executive Director Prosser reviewed HRA Letter No. 6 regarding consideration of a resolution to approve Modification No. 7 to conform the Lyndale/HUB/Nicollet (LHN) Commercial Development Improvement Program with the RSA medical office facility approved during the last quarter of 1993. M/Helmberger, S/Susag that the following resolution be adopted that it be spread in he resolution book and that it be made part of these minutes: HRA RESOLUTION NO. 497 APPROVING MODIFICATION NO. 7 IN THE LYNDALE/HUB/NICOLLET COMMERCIAL IMPROVEMENT PROGRAM: TRANSMITTING THE MODIFIED PLAN TO THE PLANNING COMMISSION: REQUESTING THE RICHFIELD CITY COUNCIL TO CONDUCT A PUBLIC HEARING THEREON: RECOMMENDING APPROVAL OF THE MODIFIED PLAN Motion carried 5-0. This resolution appears as HRA Resolution No. 497 in Resolution Book No. 4. Item #8 CONSIDERATION OF TRANSFORMATION HOUSING: REVIEW OF 1993 ACTIVITY AND PROGRAM PROPOSAL FOR 1994. HRA LETTER NO. 7 Executive Director Prosser reviewed HRA Letter No. 7 providing a detailed summary of a transformation housing program concept proposal for 1994 and asking for feedback or suggested modification from the HRA. Commissioner Susag asked about the source of funding for the program. Executive Director Prosser stated the proposed source of funding for the program would be approximately $190,000 from the Richfield Rediscovered land sale income which would then not be returned to the Development Fund. HRA Meeting Minutes -5- January 18, 1994 ~,. Chair Harms discussed his desire that this program be linked to the needs of the property owners who are being relocated because of the New Ford Town/Rich Acres buyout. He advocated that staff meet with these property owners, determining interest and identify financially qualified buyers to match with. the builders/developers who will do the transformation housing .projects. Chair Harms stated his preference that .the program not use grants or forgiven loans but rather a program where the loan to the property owner would be carried as a second mortgage. He stated this mortgage would be paid back to the HRA upon the sale of the property. He also discussed a bridge loan for financing the transformation to cover the gap, before the increased value is realized, that banks are hesitant to finance. He stated this way the HRA could "recycle" the money and assist more projects. Commissioner Sandahl stated that the proposed program concept is a stand alone program that shouldn't just be tied to New Ford Town/Rich Acres property owners, although some of them may be interested. Chair Harms stated that in the short term there is the opportunity to market the program to New Ford Town/Rich Acres property owners which could serve as a test market for the transformation housing program to be used over the long term in the community. Commissioner Luettinger stated support for giving New Ford Town/Rich Acres property owners first chance at this program. He asked if it would take resources to market this to the New Ford Town/Rich Acres property owners. Chair Harms stated the costs would be limited to staff meeting with the New Ford Town/Rich Acres property owners, explaining transformation housing and costs, determining interest, and getting basic qualification information from them. He stated he favored more flexibility in the program other than the gran-c/loan proposal, otherwise the transformation housing concept is acceptable. Executive Director Prosser stated that staff did receive some interest in the program from New Ford Town/Rich Acres property owners at the MAC information open house, but timing of the buyout and finances were an issue. He stated income level, equity level, and interest in this housing concept were three variables in dealing with the New Ford Town/Rich. Acres property owners. Executive Director Prosser stated that this is a threshold issue for the HRA, as whether the outline of the program or a revised form is a program to pursue. • HRA Meeting Minutes -6- January 18, 1994 Scott Sharpe, 2028 West 68th Street, a Richfield remodeling contractor, stated support for a transformation housing program and interest in being involved in the. program. Steve Parsley, 1600 West 66th Street, Parsley Builders, stated he liked the program and suggested assisting the builders/remodelers to purchase and transform the houses which then could be sold to purchasers. Chair Harms discussed the need for seed money to bridge the financing gap for this type of housing transformation. Dave Sumnicht, 6620 Logan Avenue, QSA, stated it was a positive factor that the HRA is willing to consider funding such a program for the community. He indicated that the economics of purchasing a house at retail for transformation is a problem because of the value "lost" in the transformation. Mr. Sumnicht discussed the need for "raw materials" (houses to transform) from willing sellers and the financing problems created by the loan to value issue. He stated an incentive is needed to assist in transformation housing. Chair Harms discussed how a subordinated loan could provide this incentive. Discussion followed regarding no interest loans to owner occupied transformation projects, means testing, subordinated loans, and investment in the community. Steve Quam, 6421 James Avenue, QSA, discussed the subordinated loan idea and the relationship to the 15 percent subsidy to project cost. He stated that he would prefer being charged interest on bridge financing and receive the 15$ grant. Gary Olsen, 7213 First Avenue, stated support for a transformation housing program to help people like him stay in Richfield and expand his home. Chair Harms stated staff should proceed with the design of the Transformation '94 Program with the additional input provided by HRA this evening. Executive Director Prosser summarized components as that of the basic program concept for existing owners remodeling homes (not higher. value homes), a concept for "vacant" home redevelopment concept with financial assistance of some type or bridge financing, and some type of grant not to exceed the same amount of funds provided to the homeowner. Chair Harms stated staff should not leave out the concept that the homeowner assistance doesn't necessarily have to be a forgiven loan, it can be a repay loan. - HRA Meeting Minutes. -7- January 18, 1994 Discussion followed regarding. the incentive of a grant program verses a repay loan program. Pat Elliot, 6720 Oliver Avenue, stated those who wish to invest in their home to stay in Richfield are investing in the house and not for future equity. Chair Harms stated that the program should not be a giveaway program but an incentive for investment in the community. Steve Quam stated the builders/developers are willing to meet with staff and lenders regarding this program. Commissioner Luettinger stated he did not favor a pure grant without repayment. . It was the consensus of the HRA that staff proceed to develop the 1994 Transformation Housing. Program. Item #9 PRESENTATION OF CSM STATUS REPORT. David Garland, CSM Corporation, presented an update on the status of the CSM Corporation proposed development in the ILN area between Lyndale and Emerson Avenue including the following: * Press Publicity The recent newspaper article had impact on current tenants and contained some inaccurate information. * Meeting with Property Owners. CSM has met with the major property owners with some progress, however, price is still an issue with some property owners. * Emerson Avenue Congregational Church CSM has found the church to be very cooperative regarding relocation and an architect has been commissioned for drawings for a possible new church on part of the Cloverleaf property. * Feasibility of Project CSM expects to determine by the end of the month if it is feasible to proceed with the proposed project. Chair Harms acknowledged the receipt of a letter from Vivarium Pets, 6519 Nicollet Avenue, opposed to the CSM proposed project because it would have a large Petsmart warehouse store. HRA Meeting-Minutes -8-~ January 18, 1994 Item #10 EXECUTIVE DIRECTOR REPORT The HRA acknowledged the receipt of HRA Memorandum No. 1 Item #11 CLAIMS AND PAYROLLS M/Sandahl, S/Helmberger that the following claims and payrolls be a~~roved: FIRSTAR BANK HRA 12%30/93: 11434-11436; 123659-12370 S 33,002.74 HRA 1/18/94: 6045-6159; 11437-11440; 12374-12390 $ 180,358.14 Motion carried 5-0. ADJOURNMENT The meeting was adjourned by unanimous consent at 9:09 p.m. Date Approved:_ Thomas Harms Chair Thomas P. Ferber James D. Prosser City Clerk Executive Director NEW FORD TOWN/RICH ACRES HOUSING II~TITIATIVES October 1993 MAC "Relocation Fair" Held at St. Kevin's (from 4:00-7:00), sponsored by MAC. Four tables staffed by W.D. Schock Company addressed different aspects of relocation. City staff had a table as well with information on various HRA programs available. 29 January 1994 Richfield Remodeling Fair, 9:30am-4:OOpm Information on remodeling, transformation, new construction, deferred loan programs. 3 February 1994 Bus Tour with Schock Met with representatives of W.D. Schock from 9:30-11:OOam. Provided "Opportunity Knocks" folders, miscellaneous program flyers and brochures, explained Richfield housing programs. Toured city. 16 February 1994 Richfield Housing Opportunities Fair Held in the Council Chambers from 3:30-8:OOpm. Featured tables with information on purchasing a home, purchase/remodel and tranformation, new construction, senior options and rental opportunities. Representatives from Lake Shore Drive Condominiums, Woodlake Point Condominiums, Market Towers Apartments, the Richfield Apartment Owners .and Managers Assn, W.D. Schock Company, Dave Schaffer (Richfield Remodeling Advisor) and city staff were present. 8 March 1994 Bus Tour with NFT/RA Residents Hosted bus tour of Richfield to approximately 30 residents. Tour looked at housing initiatives by HRA, as well as new builds and remodeling done privately. Emphasis on refreshing residents' memories of the benefits of Richfield -parks, churches, schools, accessibility, etc. 30 March 1994 First Issue of Rediscover Richfield Newsletter Newsletter initiated to highlight housing programs available and to develop on-going direct link to NFT/R.A residents. - April issue: Profiled Richfield Rediscovered New Construction Program - June issue: Question & Answer on Purchase/Remodel concept with Dave Schaffer - July issue: Tips on how to make a good purchase of existing housing - September issue: Highlight Parade of Homes entry (part of RR Program); senior housing referrals; information on Apartment Guide - April '95: Interviewed couple who relocated, utilizing Purchase/Remodel financing -May '95: Interviewed former NFT resident who used the RR New Construction Program 26 Apri11994 Letter Update on Housing Options Letter sent out to all residents who previously responded with preference cards, indicating current status of each option. • 1/10/96 9 June 1994 Letter to Certain Households Interested in RR List of properties available and other attachments sent with a letter to Phase I and Hardship status residents of NFT, who had previously indicated an interest in building a new home. Letter provided them with first opportunity to select properties on which they would like to build. 21 June 1994 Follow-Up Calls Calls by staff to individuals who received list of properties available. Intent was to see if the information received was understood, or if residents had any questions. 1 July 1994 Letter to Phase I property owners in NFT 5 July 1994 Letter to all Hardship property owners in NFT/RA List of properties available and other attachments sent with a letter to Phase I and Hardship status residents of NFT/RA. Letter provided them with first opportunity to select properties on which they would like to build. July-September 1994 Water Bill Insert Information prepared on Richfield Remodeling Program and current tax benefit to remodeling, to be mailed as an insert with Richfield residents' water bill. (Water bills mailed out in cycles.) 17 November 1994 MAC Relocation Fair Tables staffed by W.D. Schock Company addressed different aspects of acquisition, relocation and property management. City/HRA staff had a table with information on various HRA programs available. 28 January 1995 Richfield Remodeling Fair, 9:30am-4:OOpm Information on remodeling, transformation, new construction, deferred loan programs. 12 June 1995 List of properties available and other attachments sent with a letter to all remaining residents of NFT/RA. Information provides residents with first opportunity to select properties on which they would like to build. 14 June 1995 Tables staffed by W.D. Schock Company addressed different aspects of acquisition, relocation and property management. City/HRA staff had a table with information on various HRA programs available. July-September 1995 Water Bill Insert Information prepared on Richfield Remodeling Program and general remodeling tips (Tip Sheets), to be mailed as an insert with Richfield residents' water bill. Useful for current owners and prospective purchase/remodel candidates. (Water bills mailed out in cycles.) • 2 NEW FORD TOWN/RICH ACRES HOUSING II~TITIATIVES 25 August 1995 List of properties available and other attachments sent with a letter to all remaining residents of NFT/R.A. Information provides residents with first opportunity to select properties on which they would like to build. 27 January 1996 Richfield Remodeling Fair, 9:30am-4:OOpm Information on remodeling, transformation, new construction, deferred loan programs. 5 Apri11996 Fact Sheet Mailing Information on purchase/remodel, 203(k), Remodeling Advisor services and senior housing options sent to all remaining residents. 11 Apri11996 Tables staffed by W.D. Schock Company addressed different aspects of acquisition, relocation and property management for remaining residents. City/HRA staff had a table with information on various HRA programs available. 31 May 1996 List of properties available and other attachments sent with a letter to all remaining residents of NFT/R.A. Information provides residents with first opportunity to select properties on which they would like to build. • 1/10/96 3 L&I VOCATIONAL REHAB. TEL:612-296-8899 October 7, 1996 Mr. Thomas Harms, Chair Ms. Joan Helmberger Mr, Vern Luettinger Mr. Russ Sussag Mr. Michael Sandahl Richfield Housing and Redevelopment Authority 5700 Portland Ave. So. Richfield, Minnesota Oct 07 96 15:44 No .003 P.03 Kathryn $erger 6945 Sheridan Ave. So Richfield, MN (IsH:) 866-0676 B~F~~simile Dear Chairman Harms, Ms. Helmberger, Mr. Luettinger,lVl.r. Sussag, and Mr. Sandahl: I attended the last meeting of the Richfield I•iousing and Redevelopment Authority, do September 1 G, 1996. At the meeting I requested that the HRA allow all Richf eld residents an equal opportunity to purchase city lots that become available for construction of new homes. It is my understanding; that, although there is apparently no explicit written directive from the HRA, the City of Richfield has -taken the position that residents of New Ford Town and Rich Acres are to be given a two week advance opportunity to purchase these lots, to the exclusion of the other residents afRichfield. The HRA indicated that it wauid consider my request at the October 7th meeting. I request that this policy be changed for the following reasons. I have been told aver the phone that the city makes these lots available to residents by the airport far two weeks before other residents, and that other city residents may not reserve a lot unless Wane of the residents who live by the airport want the Iot. However, despite repeated requests, l have not been able to obtain any written documentation or explanation of this "policy" from the city. In fact, while previous HRA minutes indicates that the lots should be "marketed" to residents aver by the airport, there is no indication that this is to be to the exclusion of all other residents of Richfield. I am concerned that this policy was created without the benefit of formal procedures by the city or the IRA, and without notice to and input from Richfield residents, more ofwhom are adversely affected than benefit from the unwritten policy. In addition, I would note that the policy does not realty accomplish what it is intended to accomplish. I have been told that the city wants to retain residents who are displaced by the home buyout program. It is certainly unfortunate that the city is lasing these homes, and it would be nice to retain as many families as we can in Richfield. However, a very few lots are available under this program, and the city has an equal chance of losing other residents who are excluded from purchasing the lots by the programs. Furthermore, the policy is apparently not limited to long-standing residents, ar residents who have children well established in Richfield schools. LtSll VUI. Fi I lUIV tiL ICCI'1 hiD . I GL • V1L-G~V-007.7 UUL VI JV 1J •4J IYU VVJ I .V•~F My situation illustrates the unfair result of the policy. I purchased my first home in Richfield in 1976. In I983 I purchased another home in ~tichfield, which is across the street from two lots that will become available this fall. I have recently adopted a daughter and would like to stay in the Richfield school district, which I have been supporting with taxes for 20 years. However, because of this policy, one of the lots across the street from my home has already been promised to a blew Ford Town or Rich Acres resident, Since the policy does not consider the length ofresidency, the other lot in my neighborhood will also first be offered to people who elected to buy a borne by the airport, whra have already received payment for relocation costs, and who may not have lived in Richfield as long as 1 have. I will then have io endure the noise and inconvenience of new construction, across the street, for a new home for someone who may have only lived in Richfield for a few years. {There are already lines painted on my property, and noisy, large equpmhnt digging on the lot across the street.) I apologize far not being able to attend the meeting in person tonight. Please regard this letter as my ongoing request to the HRA to reconsider this policy. I believe that making these lots equally available to all city residents is better public policy. Thank you for consideration. Sincerely, ~~-~ Kathryn Berger