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06-16-97 agenda0 CITY OF RICHFIELD REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING RICHFIELD CITY HALL COUNCIL CHAMBERS MONDAY, JUNE 16, 1997 7:00 P.M. AGENDA CALL TO ORDER APPROVAL OF MINUTES OF REGULAR HRA MEETING OF MAY 19, 1997 OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON THE AGENDA 2. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING SALE OF 7600 EMERSON AVENUE TO ROCKPORT HOMES, INC. FOR RICHFIELD REDISCOVERED SINGLE FAMILY HOME DEVELOPMENT HRA LETTER NO. 31 3. CONTINUATION OF PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING SALE OF 6629 WASHBURN AVENUE TO KEN AND REIDUN STACK OF HOPKINS FOR RICHFIELD REDISCOVERED SINGLE FAMILY HOME DEVELOPMENT HRA LETTER NO. 32 4. CONSIDERATION OF PARTIAL FUNDING REQUEST FOR ENTERPRISE FACILITATION HRA LETTER NO. 33 5. CONSIDERATION OF REDEVELOPMENT PROPOSAL AND REDEVELOPMENT AGREEMENT FOR 7600 BLOCK OF LYNDALE AVENUE HRA LETTER NO. 34 6. CONSIDERATION OF EXCLUSIVE DEVELOPMENT RIGHTS AGREEMENT WITH CSM, INC. FOR INTERCHANGE WEST • HRA LETTER NO. 35 7. CONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE OF 7332 QUEEN AVENUE FOR RICHFIELD REDISCOVERED PROGRAM HRA LETTER NO. 36 8. CONSIDERATION OF APPROVAL OF RIGHT OF ENTRY AGREEMENT BETWEEN STEVEN MARLIN GRANT HOMES AND RICHFIELD HRA FOR 6633 WASHBURN AVENUE HRA LETTER NO. 37 9. ACCEPTANCE OF "AWARD OF EXCELLENCE" FOR RICHFIELD REDISCOVERED PROGRAM HRA LETTER NO. 38 10. REPORT ON RICHFIELD REDISCOVERED REMODELING PROGRAM AND OTHER REHABILITATION LOAN PROGRAMS HRA LETTER NO. 39 11. EXECUTIVE DIRECTOR REPORT • 12. CLAIMS AND PAYROLL ADJOURNMENT Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the Administrative Services Director at 861 -9702. HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 39 Agenda June 16, 1997 Issue Statement: Report on the Richfield Rediscovered Remodeling Program and other rehabilitation loan programs. Background: The Richfield Rediscovered Remodeling Program has been important in changing perceptions about housing quality, and supporting investment in the existing 9,000 homes where clearance and new home construction are not warranted. The Richfield Rediscovered Remodeling Program began in the fall of 1993. The purpose of the program is to provide technical, financial and design assistance to homeowners who want to remodel. Remodeling Advisors, contracted by the HRA, are available to visit homeowners and provide free technical advice. At the home visit, the advisor discusses homeowner ideas, estimated project costs, future value of desired improvements and financing options. The folder of information provided by the advisor at each home visit is included as an attachment. Almost 350 home visits have been made since the program began. In addition, homeowners may be concerned about 40 how to blend in a new addition with the existing home, structurally and aesthetically. A Design Advisor is available as a free service to provide sketches of the planned elevations to help owners see what they can expect. Design Advisor services are available upon referral from the Remodeling Advisor. Financial incentives to promote major remodeling are offered through the Transformation Homes Program. Homeowners may receive a deferred loan if their remodeling project costs exceed $30,000. The loan provides up to 10 percent of the remodeling contract price if the project costs are in the $30,000 to $50,000 range. It provides 15% of a remodeling contract loan if the project costs exceed $50,000. The loan, with a maximum of $15,000, becomes a lien against the property. It is interest - free and payable upon future sale of the house. The 1996 loan report is attached. To date, four loans have been completed in 1997. Since 1978, one of the HRA's hallmark programs has been the Deferred Loan Program. By way of federal Community Development Block Grant (CDBG) funds from Hennepin County, deferred loans provide assistance to low income homeowners to make repairs and improvements to their homes. Improvements may include: electrical updating, a new roof, new doors or windows. The average loan is $10,000. Loans are repaid in full by the homeowner when the home is sold, or they are forgiven after 30 years. Approximately 15 to 20 households are provided with loans annually, with 375 households served since 1978. The First Time Advantage Program began in 1997. The program goal is to provide home repair funds to first time buyers in their first year of home ownership. The loan is available to moderate income households. It is calculated at 10 percent of the appraised value of the house at purchase; the property value may not be more than $95,000. This loan is also interest -free and payable upon sale of the house. Funding for the program comes from a grant from the Minnesota Housing Finance Agency. A loan report is attached. Since most of Richfield's housing stock was built in the 1940s and 1950s, updating and repairing homes is critical. In addition, for those families who want space to accommodate their growing needs, providing incentives to modify their existing Richfield home has given them the choice to stay, rather than move. Recommended Motion: Accept the report on the Richfield Remodeling Program and rehabilitation loan programs. Basis of Recommendation: 1. The HRA desires program reports to be better informed. Z. The programs are meeting part of the community's housing needs. Alternative Recommendation: Defer the Remodeling Program report to another time. Discussion /Decision Mode: Program Administrator. Pam Bookhout and Remodeling Advisor Dave Schaffer are attending the HRA meeting. 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Background: Richfield Rediscovered is considered the best community development program in the eight state region for 1997, according to the North Central Region of the National Association of Housing and Redevelopment Officials ( NAHRO). A summary of the program challenges and accomplishments is provided on the attachment. On May 20, the Richfield HRA and City of Richfield were recognized by the NAHRO with a "Regional Award of Excellence ". National NAHRO has also recognized the program with a national "Award of Merit" to be presented in July 1997. These two awards make the Richfield Rediscovered program eligible to compete for a National "Award of Excellence ". In October, four community development programs will be given a national "Award of Excellence ", the highest achievement possible in the field of housing and redevelopment through this 9,000 member, professional organization. The Mayor, Council and HRA have all played a role in the success of the program. Key 40 staff persons responsible for the development and implementation of the program include Bruce Nordquist, Pam Bookhout, Katia Medvetski and Bruce Palmborg. Recommended Motion: Accept the 1997 Regional Award of Excellence for the Richfield Rediscovered Program. Basis of Recommendation: 1. Richfield has actively pursued redevelopment and new investment in the housing stock. 2. The program is recognized for its innovation, ability to be duplicated in other communities and demonstrating that an HRA can be active in improving housing markets and community confidence. Alternative Recommendation: None. Discussion /Decision Mode: This item is also scheduled for the June 23, 1997 City Council meeting. Res ctfully submitted, • evic Acting Executive Director JDP:ds Richfield is a fully developed first ring suburb of the center city of Minneapolis. The challenges of location and aging population and housing stock also include these community perceptions: Richfield is only a starter community S No one is building new homes in Richfield • Don't improve your house to value higher than your neighbors. • No one would buy a new more expensive house in Richfield. The Richfield Housing and Redevelopment Authority created "Richfield Rediscovered" as the catalyst to change perceptions. The program success clearly demonstrates the active role that housing authorities can play in changing housing markets. Since 1991, the accomplishments include: ■ 92 new homes with average property values at completion in excess of $140,000 • 20 homes remodeled to an average value in excess of $150,000 • An average.. sale price of a single family home in Richfield in 1991 was $82,000. By the end of 1996, the average sale price is $100,400. ■ 813 homes have been modestly remodeled with investments in excess of 10,000 each. • Remodeling permits are up over 200 percent. 10 new affordable homes with values at $80,000 to $100,000 have been provided. The 8 State Region of NAHRO includes: Minnesota, Illinois, Indiana, Iowa, Michigan, Nebraska, Ohio, and Wisconsin. North Central Regional Council of NAHRO REGIONAL AWARD FOR EXCELLENCE in COMMUNITY DEVELOPMENT Presented to Richfield, Minnesota Housing and Redevelopment Authority For Changing Housing Markets: Richfield Rediscovered Bloomington, Minnesota Branna K.Lindell May 20, 1997 President = t�= IS; t�11 - IIII __ r 1 " � ill� -- �u,IMN { FpIMM NCRC /NAHRO HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 37 Agenda June 16, 1997 Issue Statement: Approval of Right of Entry Agreement between Steven Marlin Grant Homes and the Richfield Housing and Redevelopment Authority for 6633 Washburn Avenue. Background: Steven Marlin Grant Homes has reserved the HRA's Richfield Rediscovered lot at 6633 Washburn Avenue for a new home. A Fall 1997 Parade of Homes is proposed. Plan development wasn't completed with sufficient notice to arrange for the required public hearing to sell the property at the June 16, 1997 HRA meeting. However, if construction is delayed to after the July 21 HRA meeting, there won't be enough time to finish the house before the September 6 start of the Parade of Homes. Steven Marlin Grant Homes is requesting approval by the HRA at their June 16, 1997 meeting of a Right of Entry Agreement. A Right of Entry Agreement, including a $30,000 Letter of Credit deposit by Steven Marlin Grant Homes, allows the project to get underway immediately. The builder has executed a standard form Richfield Rediscovered Contract for Private Development which the HRA can consider on July 21. A copy of the house plan is attached. The value of the property upon completion is $179,000. The Letter of Credit protects the HRA if Steven Marlin Grant Homes undertakes site work and, for some unforeseen reason, the closing on the site was delayed or simply did not take place. If that were to happen, the site work contractors could still be paid. The HRA would seek another builder to complete the project. Attached to the letter is a copy of the proposed Agreement, prepared by legal counsel. Recommended Motion: Authorize execution of the Right of Entry Agreement by the Chair and Executive Director. Basis of Recommendation: 1. Steven Marlin Grant Homes has built several new homes through the Richfield Rediscovered Program, including three Parade of Homes entries. The builder has executed a Contract for Private Development for 6633 Washburn Avenue. No other reservations were received for the site. 2. A Fall 1997 Parade of Homes entry will not be possible if work does not begin before a July 21, 1997 public hearing to sell to the builder. 3. With the terms of the Right of Entry Agreement, which includes a Letter of Credit, the HRA is adequately protected. 4. The home must be ready for the September 6, 1997 beginning of the Fall Parade of Homes. Alternative Recommendation: 1. Reject the Right of Entry. 2. Modify the Right of Entry. 3. Delay consideration of the Right of Entry. Discussion /Decision Mode: Construction would begin immediately. A public hearing to sell the site to Steven Marlin Grant Homes is scheduled for July 21, 1997. Re LL.Devi ubmitted, even h Acting Executive Director SLD:ds • RIGHT OF ENTRY AGREEMENT THIS AGREEMENT, made and entered into as of the 16th day of June, 1997 by and between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA, a Minnesota public body corporate and politic ( "HRA ") and STEVEN MARLIN GRANT HOMES, INC. ( "Developer "); and WHEREAS, the Developer has signed an agreement entitled Contract for Private Development ( "Contract ") to develop a new single family home at 6633 Washburn Avenue ( "Property "); and WHEREAS, the HRA will consider the Contract following a public hearing to sell the property on July 21, 1997; and WHEREAS, the Developer has informed the HRA that it wants to be able to participate in the fall, 1997 Twin City Home Builders Association Parade of Homes by September 6, 1997; and WHEREAS, the Developer has informed the HRA that in order for it to meet commitments to participate in the Fall, 1997 Twin City Home Builders Association Parade of Homes, that construction in accordance with the Contract, must begin before July 21, • 1997; and WHEREAS, in order to achieve that objective, the Developer has requested that the HRA permit the Developer to enter upon the Property for the purpose of performing in accordance with the Contract in advance of the public hearing and closing on the Property; and WHEREAS, the HRA has reviewed the request and is willing to permit Developer to enter upon the Property to perform the Contract prior to closing subject to and in accordance with the provisions hereinafter contained. NOW, THEREFORE, in consideration of the mutual covenants and promises hereinafter contained, the sufficiency and adequacy of which the parties hereby acknowledge, the parties hereby stipulate and agree as follows: 1. Definitions. Unless the context clearly indicates otherwise, the terms used herein shall have the meanings given them in the Contract. 2. Effect on Contract. This Agreement shall not be deemed or construed in any way to i) alter or modify any of the requirements, conditions or circumstances which must be satisfied or occur prior to closing; ii) suggest that such requirements have been satisfied or occurred; iii) create any obligation on the HRA or right in Developer to any extension of time to close or waiver of any preconditions to closing under the Contract. The parties agree and understand that in carrying out the activities permitted hereby, the Developer proceeds at its own risk that it will not close on the purchase of the Property and as a result lose the benefit of such activities. 3. Right of Entry. Subject to the limitations and preconditions hereinafter provided, the HRA hereby grants to the Developer the right to enter upon the Property to perform in accordance with the Contract and the approved plans for which all necessary permits have been issued and to do all things reasonably necessary and convenient in connection with carrying out such work ( "Site Work "). 4. Preconditions. The rights to be granted thereunder shall not be granted until all of the following preconditions have been met: a. Construction plans have been approved by the HRA and City of Richfield's, Building Official. b. Developer provides the HRA with an irrevocable Letter of Credit, cash, or similar security acceptable to the HRA in the amount of $30,000. c. Developer furnishes the HRA with evidence of insurance polices in amounts and containing coverages reasonably acceptable to the HRA and in accordance with the Contract. M 5. Letter of Credit. (A) The Letter of Credit described in Paragraph 4(b) shall be in a form acceptable to the HRA and shall serve as security for the following obligations: a. Developer shall pay and satisfy any claims by contractors or material men involved in the Site Work; b. Developer shall reimburse the HRA for any site protection work which is necessary as a result of the Site Work in the event that the Property does not close; c. Developer shall reimburse the HRA for staff and consultant expenses and costs incurred in connection with allowing for the early start in the event that the Property does not close. (B) The HRA shall be entitled to draw upon the Letter of Credit in the event of the Developer's failure to perform any of the obligations described in Paragraph 5A until August 30, 1997 but only following 30 days prior written notice of such failure from the HRA to the Developer. (C) The Letter of Credit provided for this Agreement or the underdrawn portion shall be released upon the happening of any of the following: . (a) closing on the Property between the HRA and Developer prior to July 31, 1997. (b) provided no mortgages and liens have been recorded as a result of "Site Work ". (c) provided that this Agreement's Letter of Credit is in a form which converts it to become the Contract Letter of Credit in the same amount at closing. 6. Indemnity. Developer hereby indemnifies, holds harmless, agrees to defend the HRA, the City of Richfield and their respective officers, agents and employees from any claim of whatever nature occasioned by or arising out of the Site Work. 7. Term. The right of entry shall commence upon the date Developer has obtained all necessary permits and shall terminate on July 31, 1997, unless this agreement or the closing is extended by the mutual agreement of the parties. 8. Limitations. The right of entry shall be subject to the following limitations: (a) All conditions as set forth in the Contract. (b) No mortgages or liens may be incurred or recorded. 9. Value. In addition to the understandings contained in Paragraph 2, the Developer further acknowledges that in the event closing of the Property does not take place, it shall have no claim, whether. by set off or otherwise, for any value which the Site Work may add to the Property. IN WITNESS WHEREOF, the parties have set their hands as of the day and year first above written. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA By Its By Its STEVEN MARLIN GRANT HOMES, INC. • Its STATE OF MINNESOTA ) S ) SS COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of 1997, by and , the Chairperson and Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota. Notary Public STATE OF MINNESOTA ) ) SS COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this 1997, by , its Steven Marlin Grant Homes, Inc. • Notary Public • day of . of 66331 0 R16HT 51DE ELEVATION REAR ELEVATION LEFT SIDE ELEVATION I r ifzE( 00�, 5'P N FST FLOOR FD* ftlts 000rl N 13P- 2,4 IV 5,0 ------- t F-QY -ER • • • 2ND FL00R PLAN II( j II YiL"id�I ry L LL IMSTBt BATH nnPj Face From Mac BEDROOM linen N I i HP A pl 6 BATH #1 1 o ;. L * J ! �n 14 j rails _ • E' -0' l i t BEDROOM #I I li lid Iii ° BEDROOM �2 juI 4 OPEN FOYER I II III 2ND FL00R PLAN HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 36 Agenda June 16, 1997 Issue Statement: Consideration of resolution authorizing the purchase of 7332 Queen Avenue for the Richfield Rediscovered Program. Background: The property at 7332 Queen Avenue is a rambler on a 75'x 134' lot. The house was originally a one bedroom house built on a concrete slab. An addition was built 30 years ago to provide more living space, which requires a supplemental heater. The home is in need of extensive updating, including a new roof, furnace and electrical system. Heat is not available to all of the rooms. The interior has water damage. The house also requires interior decorating, including new paint and flooring. The property is appraised for $62,000; however, the owner is willing to sell the property for $60,000. Recommended Motion: Adopt the resolution authorizing: 1. The purchase of the property at 7332 Queen Avenue for $60,000. 0 2. The HRA Chairperson and Executive Director to execute a purchase agreement and other documents to effectuate the purchase. C Basis of Recommendation: 1. The property meets program requirements for acquisition. 2. Funding for Richfield Rediscovered acquisition is available. 3. The owner has voluntarily expressed interest in selling the property to the HRA. 4. Purchase has been negotiated at less than the appraised value. Alternative Recommendation: Do not authorized the acquisition. Discussion /Decision Mode: The purchase agreement is ready to be prepared in final form. Hcung Lofty manager JDP:ds HRA RESOLUTION NO. RESOLUTION AUTHORIZING PURCHASE F O REAL PROPERTY LOCATED AT 7332 QUEEN AVENUE FOR THE RICHFIELD REDISCOVERED PROGRAM WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA) desires to purchase certain real property pursuant to and in furtherance of the Richfield Rediscovered Redevelopment Project (Project) heretofore adopted by the City of Richfield (City) and the HRA, said real property being described as follows: 7332 Queen Avenue Lot 6, Block 2, Penn Lake Terrace First Addition WHEREAS, the HRA is authorized by Minnesota Statues Section 469.012 to acquire real property within its area of operation; and WHEREAS, the property meets all program requirements for acquisition; and WHEREAS, the HRA has caused an appraisal of the Subject Property to be made by a qualified independent professional real estate appraiser and has negotiated a purchase price with the owner relative to its stated value; and WHEREAS, funds have been provided by the HRA and are available for acquisition. NOW, THEREFORE, BE IT RESOLVED by the Richfield Housing and Redevelopment Authority: The purchase price is approved as follows: Address Purchase Price 7332 Queen Avenue $60,000 2. That the HRA Chairperson and Executive Director are authorized to execute a Purchase Agreement and other documents to effectuate purchase for the amount set forth in this resolution. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 16th day of June, 1997. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 35 Agenda June 16, 1997 Issue Statement: Consideration of an Exclusive Development Rights Agreement with CSM, Inc. for Interchange West. Background: At its May 19, 1997 meeting the HRA directed staff to negotiate an Exclusive Development Rights Agreement with CSM, Inc. for the redevelopment of the area lying north of 1 -494, south of 76th Street; east of Penn Avenue, and west of Knox Avenue known as the Interchange West Area. That agreement has now been drafted and has been reviewed by staff as well as the HRH's legal counsel. A copy of the agreement is attached. The key features of the agreement are listed below: • The parties acknowledge that in order for redevelopment to occur, CSM may at some point need financial assistance from the HRA. • This agreement does not constitute approval of such financial assistance nor does it obligate the HRA to provided that assistance. • The term of the agreement is for a period of two years. • During the two year term of the agreement the HRA will not provide financial assistance to any third party in connection with any proposed redevelopment. • The agreement may be terminated by either party with 30 days written notice. • CSM will provide the HRA with written reports at least quarterly regarding the study's progress. • The City will also be a party to the agreement. Recommended Motion: Direct the Executive Director and Chairperson to execute the attached Exclusive Development Rights Agreement with CSM, Inc. for the undertaking of a redevelopment feasibility study of the area lying north of 1 -494, south of 76th Street, east of Penn Avenue and west of Knox Avenue, known as the Interchange West Area and present the Agreement to the City Council with a request that it be approved. Basis of Recommendation: 1. Exploring redevelopment of this area is appropriate. 2. CSM, Inc. has demonstrated ability to initiate and complete large scale redevelopment projects. 3. At its May 19, 1997 meeting, the HRA directed staff to negotiate an Exclusive Development Rights Agreement with CSM, Inc. . 4. CSM, Inc. has requested that the City be a party to the agreement as well. Alternative Recommendation: 1. Defer action until July 21, 1997. 2. Deny the request. Discussion /Decision Mode: If the HRA approves the Agreement, it will be presented to the City Council June 23. A neighborhood informational meeting would be hosted by CSM representatives on Tuesday, July 2, 1997 at Woodlake Lutheran Church, 7 p.m., in Fellowship Hail. Respectfully submitted ve . Devic Acting Executive Director SLD:cak 40 • AGREEMENT THIS AGREEMENT is made and entered into this day of , 1997, by and between the City of Richfield, Minnesota, a Minnesota municipal corporation ( "City "), and the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, a Minnesota public body corporate and politic ( "HRA ") (City and HRA hereinafter collectively referred to as "First Parties ") and CSM Investors, inc., a Minnesota corporation (hereinafter "CSM"). RECITALS: First: CSM is interested in pursuing the redevelopment of that certain area located in the northwest quadrant of the intersection of Highways 35W and 494 in Richfield, Minnesota, which area is generally bounded by Penn Avenue on the west, 76th Street on the north, Knox Avenue on the east, and Highway 494 on the south (hereinafter the "Redevelopment Area "); Second: CSM is proposing redevelopment within the Redevelopment Area which may include office, hotel, restaurant, limited retail and residential uses (hereinafter the "Redevelopment "); Third: The First Parties wish to cooperate with CSM's efforts with Redevelopment and are willing to proceed as described in this Agreement; • Fourth: The parties acknowledge that CSM will expend substantial time and effort, and incur substantial expense in pursuing the Redevelopment; Fifth: CSM is willing to undertake the above describe activities with the reasonable assurance from the First Parties that they will support and cooperate with CSM in its Redevelopment efforts. Sixth: The First Parties and CSM have executed this Agreement to document their understanding with respect to the proposed Redevelopment. AGREEMENT NOW, THEREFORE, in consideration of the premises and mutual obligations of the parties contained herein, each of them does hereby represent, covenant and agree with the other as follows: 1. Statement of Intent. It is the intention of the parties that CSM will proceed with the development activities necessary to permit Redevelopment, in a manner, and on terms and conditions, which are mutually acceptable to CSM and the First Parties. The parties acknowledge that in order for Redevelopment to be constructed, CSM may at some point need financial and/or site is assembly assistance from the First Parties. This Agreement does not, however, constitute either approval of such financial or site assembly assistance, nor does it obligate the First Parties to provide such assistance. LTBD123864 RC125 -152 • 2. Undertaking by CSM. CSM intends to undertake and pursue certain activities with respect to the Redevelopment. CSM's activities will include the following: site assembly, development of plans for the Redevelopment, application for necessary government approvals, and such other activities as would be customary and necessary to permit the Redevelopment. 3. First Parties' Undertaking and Agreement. The First Parties agree to cooperate with CSM in CSM's undertakings, and specifically agree that during the term of this Agreement the First Parties will not (i) provide or enter into an agreement for provision of financial assistance to any third party in connection with any proposed development within the Redevelopment Area, or (ii) except as may be necessary in connection with the provision of public improvements, condemn or agree to proceed with the condemnation of any property within the Redevelopment Area to assist or facilitate development within such area by any third party. 4. Term. The term of this Agreement shall be for a period of two (2) years, provided that, either party may terminate this Agreement as to all or any portion of the Redevelopment Area upon thirty (30) days written notice to the other, in the event that: (a) the City determines, • in good faith, that CSM is not diligently pursuing the Redevelopment with respect to the portions terminated, or (b) CSM determines, in good faith, that the Redevelopment is not feasible with respect to the portions terminated. First Parties may also terminate the Agreement for failure or CSM to meet its obligations under paragraphs 5D or 5E. CSM will provide the First Parties with written reports at least quarterly regarding the status of its activities hereunder. Any such notice shall be deemed delivered if either actually delivered, or if faxed and mailed to the parties at the following addresses: CSM Corporation Suite 150 2575 University Avenue West St. Paul, MN 55114 -1024 Phone: (612) 646 -1717 Fax: (612) 646 -2404 City of Richfield 6700 Portland Avenue South Richfield, MN 55423 Attn: City Manager Phone: (612) 861 -9760 is Fax: (612) 861 -8974 Richfield Housing and Redevelopment JBD123864 2 RC125 -152 . Authority 6700 Portland Avenue South Richfield, MN 55423 Attn: Executive Director Phone: (612) 861 -9760 Fax: (612) 861 -8974 5. Miscellaneous. A. This agreement constitutes the entire agreement between the parties relative to the proposed Redevelopment. Unless specifically described herein, no obligation shall be inferred or construed. B. As expansion of the foregoing, CSM understands that further and separate action, for which no obligation is created hereunder, will be required before the First Parties are obligated to take various actions with respect to the Redevelopment. Those actions may include, without limitation: a) establishment of Project Area and Tax Increment District; b) agreement to provide tax increment or other financial assistance to the 40 Redevelopment; C) zoning and subdivision approvals; PP , d) acquisition of land within the Redevelopment Area by either voluntary purchase or condemnation (or both); and e) construction of public improvements to serve the Redevelopment. C. CSM further understand that many of the actions which the First Parties may be called upon to take require the reasonable discretion and in some instances the legislative judgment of the First Parties, such actions may be made only following established procedures; and First Parties nlay not, by agreement, agree in advance to any specific decision in such matters. D. CSM hereby indemnifies, holds harmless and agrees to defend, the First Parties, their officers agents and employees from any claim or cause of action of whatever nature occasioned by or arising out of this Agreement or the First Parties performance thereunder. E. CSM agrees that it will pay all reasonable costs and expenses incurred by the First Parties relating to the preparation of this Agreement and all actions taken by the First Parties in furtherance of their obligations hereunder. Such payment shall be made to First Parties not later than 30 days following each request for payment accompanied with detail necessary to support such request. JBD123864 RC125 -152 3 • IN WITNESS WHEREOF, the parties have executed this Agreement effective the date and year first above written. CITY OF RICHFIELD By: Its By: Its RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY By. Its By: Its CSM INVESTORS, INC. By: Its JBD123864 RC125 -152 4 . HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 34 Agenda June 16,1 997 Issue Statement: Consideration of a redevelopment proposal and redevelopment agreement for the 7600 block of Lyndale Avenue. Background: For several months staff has been working with two different groups on separate redevelopment proposals for the 7600 block of Lyndale Avenue as well as the adjacent residential half blocks of Aldrich and Garfield Avenues. The groups involved are Laurent -Parks Development and a group of property and business owners from the 7600 block of Lyndale Avenue. The Laurent -Parks group presented their concept to the HRA at its May meeting. That proposal, while very innovative, is not economically viable in its current form. Staff has worked closely with the local group to help further develop and refine their proposal. A key element of that proposal is a formation of a partnership agreement. The agreement has been drafted but has not yet has been executed. The original partnership consisted of seven individuals (five of which were land owners in the area) who .collectively owned 60% percent of the commercial property in the area. Recently one of the primary land owners in the group indicated that he was no longer willing to participate in this project. His departure leaves the status of the partnership agreement somewhat unclear. However, several of the remaining members have indicated a strong desire to continue moving forward with this project. They will be presenting their concept plan to the HRA at its June meeting. The proposal includes 48,000 sq. ft. of new commercial and retail space, 28,000 sq. ft. of new office space and 60 townhome units. Please refer to the attached site plan and building elevation drawing. The current market value of the area under consideration is $2.4 million. The proposed market value under the redevelopment plan would be $12.8 million. City staff estimates the site assembly cost at approximately $5.5 million based on data provided by the developer. Initial cash flow analysis by Ehlers and, Associates, Inc. /Publicorp, Inc. indicates the project would generate approximately $2.6 million in present value increments over a 25 year period. This leaves the project with a gap of $2.9 million. Land sale proceeds from the townhome sites would generate $600,000 and proceeds from the sale of the commercial and office land would generate an additional $770,000 thus reducing the gap to $1.56 million. The developers are requesting that the HRA provide an additional $1 million to the project to further reduce the gap. Hopefully, further discussions will result in reducing the gap to zero. The HRA would also lend money to the developer to be used to acquire the property. Also to be included in a development and land assembly agreement would be the following: • The HRA would utilize condemnation if good faith negotiations were unsuccessful. • The agreement would require timely performance. • During the term of the agreement, the HRA and the redeveloper would negotiate the terms of the redevelopment contract. • During the term of the agreement, the HRA would not negotiate with or enter into an agreement with any third party for the provision of financial assistance for a redevelopment project in this area. Recommended Motion: Direct staff to negotiate a preliminary development and land assembly agreement with the Main Street Shops on Lyndale limited liability partnership and to bring that agreement to the HRA for its review and approval at the July 21, 1997 meeting. Basis of Recommendation: 1. The area has been identified for redevelopment. 2. The Main Street Shops on Lyndale proposal is consistent with the Lyndale Gateway Redevelopment Plan and strategy dated July 8, 1996. 3. The partnership includes businesses from the area. 4. The concept is very close to proposed financial feasibility. Alternative Recommendation: Direct staff to not pursue the preliminary development and land assembly agreement. Discussion /Decision Mode: Representatives of the Main Street Shops on Lyndale partnership will be present at the June 16 HRA meeting to discuss their proposal. JDP:ds 0 U 7 A ATTACHMENT A. LYNDALE AVENUE SOUTH, PROPOSAL COMPARISON RENT -P POSAL NEW COM. /RETAIL SQ FT 24,000 �3' =s "' 84,000 RENOVATED COM./RETAIL SQ FT 22,950 l 0 NEW OFFICE SQ FT 18,000 36,000 TOWNHOME UNITS 60 8 APARTMENT UNITS 0 150 TOTAL OFFICE & RETAIL SQ FT 64,9500 120,000 FINANCIALITIF DATA LAURENT -PARKS OPTION 1. PROPOSAL CURRENT MARKET VALUE $3,464,000 $4,295,000 PROPOSED MARKET VALUE $10,501,630 $14,673,076 SITE ASSEMBLY COST $5,555,770 $7,448,640 SEMI — ANNUAL TAX INCREMENT (PRESENT VALUE OVER 25 YRS) $1,634,850 $3,116,385 GAP (BEFORE SOURCES) $3,920,920 $4,332,255 INITIAL SOURCES TO FILL THE GAP LAU RENT-PARKS OPTION 1. IJ PROPOSAL TOWNHOME LAND PROCEEDS, $10,000 /UNIJ $600,000 $0 ADDITIONAL HRA FUNDING $1,000,000 NA GAP (AFTER OTHER SOURCES) $1,549,320 $3,689,505 9NOTE: Option 2 is being pursued. Option 1(partial remodel) does not generate sufficient increment. Page 1 of 1 , —F pe Aldrich Ave. U) `K � 1 . ,y U[ J. t I amp--, � z: . 1:.f, -11 :1 1. It ? .a�.. t� �+ L.., w. c ..�;4�� ' '� Z.:'S"5 �iL `itif`iY:%r ., 'S":rY:L`S.S'hi�rSA:��° ' `S•5:r... .`�TiiS ,> y ;,. • v;:y, ,,,h:,, '�Yi` ?�'... ?�) ii „> �'is. . ! �: }, rA- t�srs• r"”' a : � `� "" :•�"` ry.� � `key It OJdwY A`Zyv C ' . Si :y* Z' .lF ASS S ,L G9a.ui.: i5 Lyndale Avis. y � '•may 1Z E'�k��v;,, y� ^, i �i` '3,� -� 4" 2 z a�. E t F . 'nE} x; rs �U$,��.::, N �j- � i'�` .yz�w k' 2.. 'Si:i -•LJ1 Yid. t. ' .�t ..,�i<. ` .._. • i� '!Y :PF•E•� - wy, �;iiil,Ji' •yi,?'i.,. °�� .y . .�.'y. <.4, ;.:a+x . ..`ir � b''7W.` �"'4lSy�' S�u'Li` �3•,`S, S, �},,'' 1 +� ? }.,:= wI � Y r? l.s41 m • Mti yj]} - .�� a®0�'�ti .i'i.:.'r� a:�...�:.c1.'. i.' i.i.:.:.:a�.u+ Y7• t. ;may e� .....y .:. . . .i ......................r ..... a�si � d:'fS9!4:8+ ..i:T.y::l:f `a:..... `:`: �•.:.i..... 5•::?'... <.ti � � ]: k: �...,i.'K � � f Z Z Z ;w- U) s. —� —� Garfiel Ave. F—I F—I BAR o z � � n �r m F:w _ fn W1O tJ fa (p p N N N 70-1 N y_ d1 =1! 2 �o. Mimi Itmmew loom IN S I,- HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 33 Agenda June 16, 1997 Issue Statement: Partial funding request for Enterprise Facilitation. Background: Enterprise Facilitation is a community based process designed to strengthen the operation of existing small business and to assist people who desire to establish a new business (see attachments). The process was designed by Dr. Ernesto Sirolli and has been implemented in several countries of the world, including the United States and southwestern Minnesota. Earlier this year, the process was initiated in the Dakota County /Hastings area. Hennepin County has become focused on economic. development and ways it could improve the economic climate. The County concluded that a cost effective way to do this would be to encourage communities and neighborhoods (Minneapolis) to establish Enterprise Facilitation. On May 21, the CEO of the Sirolli Institute, Mr. Mike Utter, made a presentation to the Richfield Chamber of Commerce Board. The Board became interested in establishing • Enterprise Facilitation in Richfield. (Mr. Jay Stevens, Chairperson of the Richfield Chamber of Commerce Board, will be attending the meeting and is prepared to discuss the Chamber's perspective on this process.) The Visions, Inc. Economic Development Committee chaired by Larry Wozniczka heard a presentation by Mr. Scott Beckman of the Dakota County Development Partnership at their June 12 meeting. Mr. Beckman was responsible for developing Enterprise Facilitation in Dakota County /Hastings. Visions expressed some interest in Enterprise Facilitation and will discuss it further at their July meeting along with any role they might play in its activation. The goal at this time is to have Chamber of Commerce and Economic Development Committee members form the core of the Enterprise Facilitation Advisory Committee. The Advisory Committee would oversee an Enterprise Facilitator who would be trained by the Sirolli Institute. The Facilitator would assist local businesses in a "one -on -one" approach to formulate goals and a plan to achieve those goals. There would be no charge to the businesses for the services of the Facilitator. Practitioners of Enterprise Facilitation have determined that it requires at least a 24- month operating period to have an impact. An operating budget of $116,000 is required (see attachment). This assumes that office space and support services are made available without charge by a private company in Richfield. It is requested that the HRA provide $58,000 of funding over 24 months. This funding can be accommodated in the revised 1997 and proposed 1998 budget, and a portion of the funding would be carried into the 1999 budget. Discussions are underway with representatives of Richfield Bank and Trust Company, Norwest and Firstar Bank for • additional funds. Also, Hennepin County is prepared to make a commitment. Recommended Motion: Include in the revised 1997 and proposed 1998 and 1999 budgets $58,000 of funding over 24 months to help support Enterprise Facilitation. Basis of Recommendation: 1. Enterprise Facilitation provides an opportunity to strengthen existing small businesses and assist in the establishment of new businesses. 2. Stronger small businesses help make Richfield a more stable community. 3. More economically viable small businesses would be able to occupy buildings of better quality. 4. Redevelopment, through removal and new construction, is neither practical or feasible in all commercial areas of the community. 5. Enterprise Facilitation offers an opportunity to strengthen the economic viability of businesses and therefore make renovation more of a renewal option. 6. Funds are available. Alternative Recommendation: 1. Delay action. 2. Reject the proposal. Discussion /Decision Mode: A commitment by the HRA would increase the opportunity to obtain commitments from other funding sources. Re ectfully, submitted, eve a is Acting Executive Director SLD:cak 0 • Annual Tentative Budget Enterprise Facilitation Enterprise Facilitator Salary and fringe benefits $40,000.00 Clerical Support 0.00* Travel $ 1,800.00 Sirolli Institute Year 1 -- $18,000.00 ** Year 2 -- $ 6,000.00 ** Telephone 0.00* Office Supplies $ 1,200.00 Rent 0.00* Accounting /Audit $ 1,500.00 Computer 0.00* Advertising /Printing $ 1,000.00 Miscellaneous $ 500.00 TOTAL Year 1 -- $64,000.00 Year 2 -- $52,000.00 *In kind contribution * *Services to be provided include assisting in recruitment, selection and training of the Advisory Committee members as well as Facilitator and ongoing support to both the Committee and Facilitator. In the second year, Sirolli Institute fees would decrease to $6,000, resulting in a second year budget of $52,000. 1 "One of the beauties about this particular theory is that it ` engenders an enthusiasm not only in the individual who sets up the business but it engenders enthusiasm from the community itself." Julian Q0, fonnerAlinister for Economic Development and Trade, Western Australia The Enterprise FacilitationTM model is a way to reawaken human spirit and revitalize your community! Enterprise FacilitationTM is a caring and cooperative model that will help you nurture local business development and expansion in order to bring new wealth and new jobs to your community. Have you ever wanted to reach deep into your local community to identify, critique and support people during the inspirational and creative stages of business development -- before deal making or financing? Enterprise FacilitationTM is just the model that does. It looks to the spirit of each aspiring entrepreneur and helps to grow skilled managers and business leaders, who in turn inspire others: > It supports your local entrepreneurs with free, confidential, long -term assistance in developing their dreams. The process is built on the passion, creativity and commitment of the people in your local area, encouraging growth from within the community. > Through the creation of an advisory committee comprised of involved citizens and officials, it becomes a local grassroots initiative stimulating economic development from the bottom up. > The Enterprise Facilitator provides intensive one -on -one assistance that enhances other programs offered by local development organizations and professionals. The Enterprise Facilitator operates in a highly visible, highly accessible and intensive support role spending as much time as necessary with each client. The advisory committee hires and supports the training of a Facilitator as the catalyst to assist and encourage local innovation. Enterprise Facilitation builds capacity within your community or region to` respond effectively to changing economic and social conditions. As your community members look to fulfill their dreams, Enterprise Facilitation provides the caring and cooperative atmosphere that nurtures new businesses, new jobs and new wealth. The result is self - sufficient people in healthy communities. VAP SIROLLI INSTITUTE 210 Cirque Drive Bozeman, Montana 59715 USA Tel 1- 406 -587 -1548 Fax 1 -406- 587 -8828 email: sirollinst @aol.com i "Success is to do brilliantly what each of us loves to do. Finding this pathway to fulfill our deepest needs, even in the world of work, is a difficult task where the ' Enterprise Facilitation model shines." Dr. Ernesto Sirolli, Sirolli Institute Enterprise FacilitationTM is based upon a philosophy that encourages the personal fulfillment of individuals and the empowerment of local communities: ► It looks to the unique needs of individuals within a community before it looks to a predetermined service or a program. ► It assesses personal commitment to a business idea before assessing that idea's business viability. ► It helps take that idea from a passionate dream to a practical reality through proper management. ► It teaches team building to achieve that business practicality. ► It innovates creative solutions for each individual and situation. ► It maintains a long -term responsive and confidential approach to business development. ► It sparks an environment of encouragement that inspires others. ► It becomes a locally financed and controlled initiative. Enterprise Facilitation does not conflict with traditional economic development in that it: > does not replace existing business technical assistance or research programs - -it increases the need for this type of activity > does not encourage entrepreneurs to start new businesses or seek to motivate individuals - -it relies on the entrepreneur's own inner spirit of motivation > does not recruit or attract business to relocate - -it encourages local expansion and retention > does not offer incentives or loans to clients or replace micro - lending initiatives - -it increases the need for alternative capital resources > does not replace revitalization programs or long -term planning - -it maximizes their effectiveness by making appropriate and timely referrals to them kIW44 SIROLLI INSTITUTE 210 Cirque Drive Bozeman, Montana 59715 USA Tel 1 -406 -587 -1548 Fax 1- 406 - 587 -8828 email: sirollinst @aol.com 13 • Since 1985 20,000 new and expanding businesses resulting in 40,000 new jobs were started with the help of Enterprise Facilitators in more than 100 communities in Australia, New Zealand and the USA. Lincoln County, Minnesota (pop. 6,800. One of Miinnesotats most rural counties) Activity Report from October 1988 to April 1996: Total Projects: 351 Successful Business Start -ups: 55 Business Expansions: 61 Total new jobs from assisted businesses: 177 New Wages from assisted projects: $2.0 million From: Uneoln County Enterprise Development Corporation Client Activity Stunntary. April 19.19% In October 1989, with financial support from Communicating for Agriculture, Southwest State university, Southwest Minnesota Initiative Fund and the Lincoln CountyConmussion, a six -month pilot Enterprise Facilitation project was initiated. It was determined that Lincoln County- -one of Minnesota's most rural and economically depressed areas-- would be an excellent test. Five months later the pilot project was a success and a permanent county enterprise development corporation was formed. Projects include business start ups, expansions, inventions and, perhaps most important, clients in business that need to stay in business. The annual wage impact of the activity is estimated at 52,000,000 in a county with a total labor force of 3,000. This was accomplished with an annual budget of less than $55,000. Esperance, rural Western Australia (pop. 10,000) "In summary the achievements of the Esperance Local Enterprise Initiative Committee between 1985 -1988 consist of contributions to the formation of 45 operating businesses, with a combined annual revenue of about A$7.1 million and directly adding 77 net full -time equivalent jobs to the economy." In 1996 the project is ten years old and is still functioning well. It has created over 320 businesses with a business success rate of over 80 percent during this ten -year period. The program has been supported by both liberal and conservative governments in Australia and has been used as a model to replicate in 35 other cities in western Australia. Extract front : J. Moon & K Villottghby, Case Studies in Lom! Derelopment - The Espemnee F_rperience. (Canberra. Australian Commonwealth Office of Local Government and the \N'esternAustraan Deparnnent of Regional Development and the \orthwest.1988.) pp.5.35.36. Waimate Plains of New Zealand During the period 1987 -1990 the Waimate Plains Facilitator covering an area with a population of 35,000 people reported the following: Total Office Contacts: 736 New Business Start -ups: 207 Jobs created: 400 Savings in unemployment benefits: NZ$ 2,683,205 From: DREAMS TO REALITY (New "Zealand Department of Labour, 1988) p.9. • SIROLLI INSTITUTE 210 Cirque Drive Bozeman, Montana 59715 USA Tel 1- 406 - 587.1548 Fax 1- 406 - 587 -8828 email: sirollinst @aol.com If you feel your community might benefit from applying Enterprise Facilitation techniques locally, or are just interested in more information to help you evaluate Enterprise Facilitation, here are several options you can consider. Contact the Sirolli Institute to: ► request additional information packets like this one for other members in your community. ► request a representative to attend a local meeting to discuss the concept. ► request a copy of the introductory video to show at a community meeting. ► purchase a copy of the book Ripples in The Zambezi by Ernesto Sirolli from the Institute. Call the number below to order Work within your community to: ► generate interest in Enterprise Facilitation ► identify persons and organizations that will support economic development and work to establish a facilitation program ► form a committee to investigate working with the Sirolli Institute ► contact program board members that serve in other communities and ask them how the program works for them. (The Institute will send you a References list upon request.) If your community has an economic need, call the Sirolli Institute. Perhaps we can help! k'WA SIROLL l INSTITUTE 210 Cirgtie Drive Bozeman; Montana 59715 USA Tel 1- 406 -587 -1 548 Fax 1 -406- 587 -8828 email: sirollinst @aol.com • • Lectures or Presentations of the Enterprise FacilitationTM Model Dr. Sirolli and other trained leaders of the Institute are available to travel to local and regional meetings to present lectures on the Enterprise FacilitationTM model. Dr. Sirolli will present the concepts and history of the model to groups of local or regional officials with an interest in economic development. His lectures are highly entertaining and reveal a path of hope for many communities. One -Day Seminars The one -day seminars put on by the Institute explain in detail how the Enterprise FacilitationTm model works. These are more extensive than the short lecture in explaining how local human resources can help halt economic decline, especially in small rural communities and economically distressed urban areas. The one -day seminars are designed to brief community leaders, government department heads and business executives on the potential benefits and opportunities available in adopting a local facilitator program. Half -Day Community Visits For communities that have established a Committee for Enterprise FacilitationTM and installed a certified Facilitator, these visits are necessary for additional training and program review. The Sirolli Institute staff maintains an active and hands -on approach to programs that are underway. Careful adherence to the principals of Enterprise FacilitationTM are necessary for a successful program and occasional visits are needed for review of progress and/or follow up training. Panel Discussions & Forums Institute leaders are available to participate in or conduct panel discussions and forums on the Enterprise FacilitationTM model. These require special scheduling and cooperative advance work between the Institute and the sponsoring organization to assure a balance of other speakers and perspectives. vp SIROLLI INSTITUTE 210 Cirque Drive Bozeman, Montana 59715 USA Tel 1- 406 -587 -1548 Fax 1- 406 -587 -8828 email: sirollinst @aol.com Facilitator Training Course and Certification What is the Course? The Facilitator Training is a five -day course during which you are trained in the techniques and requirements of providing Enterprise Facilitation"'. Proper completion of the course comes with certification by the Institute that you are a qualified Facilitator. It is endorsed by major institutions and supported by governments. The course covers the spectrum of local economic development potential including how to tap the ideas of individuals and help them develop within their communities. It emphasizes listening and evaluation skills, management and problem assessment and team building. It is a hands -on learning experience. Occasional refresher courses and renewal of certification is required to maintain status of certified Facilitator as well as subscription to the Institute- Newsletter and other mailings. Where is it held? The training course can be held in a variety of places. First it can be held in Bozeman, Montana, at. the headquarters of the Sirolli Institute. Second it can be held on site at a location of choice of a local community development organization who needs to train several Facilitators at once. The minimum size for an on -site course is five trainees. Two or more local communities may cooperate in sponsoring a training course. On -site training courses tend to be less expensive for participants due to reduced travel costs. How do I register? Contact the Sirolli Institute at the address or numbers below and request information on the schedule of classes. Registration fees are required in advance. Registration fees for a course held in Bozeman, Montana, includes tuition and class materials. Travel to and from Bozeman, lodging, meals and personal expenses are not paid by the Institute and are at trainee expense -- though lodging arrangements are coordinated by Institute staff. ti SIROLLI INSTITUTE 210 Cirque Drive Bozeman, Montana 59715 USA Tel 1- 406 - 587 -1548 Fax 1- 406 -587 -8828 email: sirollinst @aol.com SIROLLI INSTITUTE International E n t e r p r i s e FaciIitationTI DIALOGUE WITH ERNESTO SIROLLI During the late summer of 1996, Dr. Sirolli spent a day and a half with Michael Utter, CEO of the Sirolli Institute, at the Sirolli's home in Sioux Falls, South Dakota. The following transcript is excerpted from their conversation. It reveals the passion, philosophy, and practicality of Dr. Sirolli's economic model -- Enterprise Facilitation TM. Some of the material covered had never before been recorded, either on tape, film, or written form. The following are highlights of his remarkable insights. Michael Why is Enterprise Facilitation different? ES: It is different on a number of levels. It is so different it is unbelievable. It is so different that When I speak to economic development practitioners and I explain to them what it is, • they say, "Oh, we don't do that!" So first of all I would like to say that it is different because of the intensity and the exclusivity of the work that the Enterprise Facilitator does versus, for instance, the manager of an economic development corporation employed by a city. The Enterprise Facilitator does only two things: one, assists individuals or groups of individuals to create a new business; and second assists existing companies to expand. Nothing else. Now if you look at the job description of the manager of an economic development commission, you will see that the list is very long, very comprehensive. These people are all involved in planning, business attraction, micro loan funds, disbursements. They assist the tourist industry. They are involved in the revitalization of the city. They are probably involved in Main Street projects. So what they do constantly is they engage themselves in a number of activities which are excellent, wonderful activities; but activities that prohibit them from concentrating 100 percent on assisting individuals and groups going from the idea, to making money. The Enterprise Facilitator's exclusivity allows the person and the board of management to concentrate and to dedicate hundreds of hours to individual clients. It's unbelievable! Hundreds of hours! No manager of economic development can dedicate ten hours to an unemployed lady who wants to set up a day care center. I dedicate twenty hours, thirty hours, forty hours, until I have a day care center opening. So first, it's intensity and exclusivity of what we do. Second, it's the way we do it. We don't ever set ourselves up in a community to basically promote services and programs which exist. In that sense, we don't have anything to give clients, nothing! -- except our undivided attention. City managers, managers of economic development, have access 210 Cirque Drive Bozeman Montana 59715 USA Tel 406 587 1 548 Fax 406 587 8828 email: sirollinst @aol.com September 1996 buerview with Ernesto Sirolli to programs. You need money? They have a micro ivan fund. Yuu need money, you go to them, say, and they will give you a brochure, they will give you some documentation saying: "You have to fit these guidelines. If you fit the guidelines, come back." They have other programs. They have some incentives, they have, maybe, some land which may be available for a company. They can have a host of programs for women entrepreneurs, for minorities. We Enterprise Facilitators have NOTHING!! So the way we work is that since we have nothing, we have to invent a way of helping that client. And for us the client does not belong to a category: migrant, minority, unemployed, or industrialist wishing to expand. For us the client, each client, is unique. So now we have to find a way of helping this unique client, this individual, with a unique set of problems. And we have no way of helping this individual, except by accessing resources which we have to find in the community. So we have no way of quickly dispatching a client by going to the shelf, getting the program which we believe would best fit the client, get the pamphlet, give it to the client, say, "Go home, fill out this application. Come back and if you qualify, we will give you five thousand dollars;" or, "Go home, fill this out, come back, if you qualify, the city may give you some free land, or some tax credits." We have nothing! Facilitators never carry any money, any programs. So the only way I have to help my client is to find out what my client needs and then I will go around begging on behalf of my client for resources. Michael. Could you speak about the concept of linkage? ES: Okay. So what happens is that the way the Facilitator works -- unique again - -is that the resource that the Facilitator uses is not programs which have been devised somewhere in Washington maybe. And to activate these programs you have to basically first pigeon hole the client into a specific category and then go and do it. We don't do that. The resource that the Facilitator has is the committee, the board of management, which is a group of local people of enormous passion for their own community. A great resource, with lots of contacts. And these groups of people are helping the Facilitator to invent, to invent the specific solution for the client's needs! It is magic! It is magic! When your client comes and says: "You know, I need to do this, this, and that..." and we do a quick analysis and this wonderful potter has never, ever, done even a very crude financial analysis of how much he's making, with these, you know, Vaseline pots. We say we need an accountant to come and leok at your last two years' record of sales, just to find out whether this is a hobby or this is a business. Whether you are doing this because you like doing it, or whether you are doing it because you like doing it AND it returns you some money. ........... ...._ .... ...................... OSirolli Institute, Inc. 2 September 1996 huenleir with Ernesto Sirolli • luiichaer 'imsiacioroiinnovatioo,o f, uniqueness or creativity that tho F ac,ot has to bring seems to me to be a-big distinguishing characteristic of Enterprise Facilitation. ES: And I really think that it happens because we send the Facilitator in the community only with the philosophy, and the philosophy of Enterprise Facilitation is what sets this program apart from any other program. We don't conceive the world as a place that can be bettered by technicians and technocrats. We don't believe for a minute that there are people of superior knowledge and wisdom in our community who decide how to improve the world. We believe that the richness is not with the technocrats; the richness is with the people in the community. The engine, the life force, the creativity, is with the people there, NOW. And instead of technocrats believing that we have something to extend to the people, the ignorant people in the community, Facilitation is based on the opposite philosophy which says unless there is passion, there is nothing. Passion we find in the hearts and in the minds of the people out there, who are right now dreaming about doing something beautiful. Our role is simply to help these individuals do it. Not because we are better than they, no, not at all. We can simply help these people do it because we can help them to activate some contacts and some networks which will facilitate that business development. But the force, the life force, is with them. Michael: Why is this. concept important in relationship to human capital within the community or within the nation? Why is this a different perspective about people and looking at those people as valuable, instead of, you know, why the hell would anybody want to even help a man in Victor, South Dakota, a town of twelve people? Yet there's a wonderful reserve of human capital there. ES: Philosophically speaking, Enterprise Facilitation believes. or is based on the belief, that each of us is extraordinary, important. The ability to change the world is within each of us. The history of consciousness of the western world has been changed by somebody born in Palestine. One of us can change the world because he can change the consciousness of the world. So we are extraordinary, precious. Now where these people are born is totally irrelevant. Politicians talk about people being the best resource the country has, sure. But what we do is talk about it. Yes, it's easy to say, but what do we do about it? I can only say that everything I do, and everything I've done for the last twelve years, was the direct consequence of my helping an unemployed person who was working out of a garage, in the most remote country town, in one of the most remote states, in one of the most remote countries of the world -- Australia. And if I had to tell you where that garage was, and you wanted to try to find it on the map, you will see that you could not be more remote and removed from the United States of America. And yet I'm here as a direct consequence of working with one person who had a great passion, but didn't know how to make a living out of it and therefore this great passion was sterile. Now, I believe that if we could simply help people to do beautifully whatever it is that they love doing, we will have a wonderful world. Now what are the things which are of ......... ...... ..... ....... ....................... _ ... ............. ...... ._.... ©SirolG Institute, Inc. 3 September 1996 Interview with Ernesto Sirolli importance to the woiici% This is somelimiy ihai i ieei very strong about, that anything done with Jove is extremely important to the world. So to me, the wealth of the nation is reflected not only in the financially productive things that people do; but I believe that where you have a great parent who loves dearly being at home with children and cooks meals and sends his kids to school looking, you know, clean and sharp, that parent participates in the creation of the wealth of the nation because being such a good parent will produce kids who will not become a burden to society. So I believe it's not important what people do, but how they do it. And how well they do it. So Enterprise Facilitation has taken out of this cosmos what people can do. And Enterprise Facilitation concentrates specifically on people who want to go and set up an economic activity. Michael. When we were in Minneapolis together you talked about the magic that takes place between the heart of Facilitator and the gift that is given, why there is no financial incentive for the Facilitator. When this gift is given, from the heart, that it has a kind of transforming power. Could you talk about the magic of the Enterprise Facilitator? ES: There is another dimension to my work, and I don't even know if we should call it Enterprise Facilitation anymore. The dimension is a spiritual dimension that, even though I've been very very careful not to emphasize it, people peek and they say, 'I read your book and I got the spirituality of this.' Let's start by saying, and I'll use something in the bible, and we will use it as a kind of intro. In the bible it says that a friend who is helped by a friend is like an impregnable fortress. And when you listen to this you say, `Well, how come ?' These two individuals can be weak, and they can be crying together, and the image of the impregnable fortress, this massive castle wall. IMPREGNABLE! fortress- -not one of those lovely renaissance castles or the Disneyland castle - -no! Fortress! Impregnable fortress! Why? Because somehow I believe there is in this relationship, the magic of the gift involved. What is the gift? The gift is a known commercial transaction which occurs. And now this known commercial transaction is an act of love. `I'm helping my friend. My friend is in a dire strait. I am moved to help my friend.' This is compassion. Now, what happens when two people have passion together? Well, what happens when two people have passion together, you have passion to the square and passion is the life force. Passion is what makes us live, what compels us. Now imagine what happens when I am moved by my friend's need, and I'm saying: 'I can not see this continue. I will help.' What happens then is that you have probably the beginning of human consciousness: You have one of the most important moments in the history of our development as humans. Because you have all of a sudden this great empathy, and the power of this working together is such that it creates a kind of magical abundance. The abundance is that you are basically putting energy in the field and you are rewarded with more energy. It is not surprising that once you operate around this project, this energy field, this group of people who want to help, others become involved. And it spreads, and then you have ... ................... _ ........ 'JSirolli Institute, Inc. 4 September 1996 Interview with Ernesto Sirolli . a group of people. in the communny buzzing because they are doing. They are helping 11 people. -Tfiey are putting energy out. So instead of, being a kind of entropic system where it fades out, which happens in many, many committees, Enterprise Facilitation creates this energy by helping others, and others come back and they reflect on you. They are alive, and it's not surprising that good facilitation committees have been there for ten years with the same people. They don't get tired of it because it's a buzz. They get so much energy back by giving out energy. It is remarkable. Michael: Is this not the essence of real community? ES: Eight years ago I spoke to an American anthropologist, and he said to me, "Ernesto, what you are doing is that you are retribalizing society. We are tribes, and in a tribe, your son could always go and learn to hunt from an uncle, how to make shoes from a second cousin or your father. We don't have a community anymore. We've become individual units, in isolation, and we struggle for survival. We don't even care for our old people anymore, we send them to homes." We are so terribly isolated. What Enterprise Facilitation does is recreate a community who loves and cares and is excited by all this energy. And yes, I believe the true spirit of community is when you are not alone. One of the most rewarding side effects of this • project is when you see a community putting up a sign reading Welcome to our City. It is a sign that says welcome to the enterprising community. And this is a community where if you want to do something, people help you to do it. So can you imagine a community which says we are going to provide a friend to you? And as soon as we provide a friend to you, you are not an isolated, frustrated, lonely, poor persona You're not unemployed anymore. You're not a housewife anymore. You're a friend. We provide you a friend and we make an impregnable fortress of you. Michael: Is the power of this related to the purity of the heart? If people are doing this for reasons to manipulate other people, to gain power, reputation, status, does this have the same result? ES: Again, we have to look at theology. Charity done with the wrong motive is not charity. If in church you put $100 bill in the basket because you want people to see you, that's not charity. It's a self - serving gesture which is not, if you believe in credits to make sure you will go to paradise, worth even two points! Okay? Charity has to be done from the heart, otherwise it's not charity. You can give a million dollars to a church. If you have only done it because you are going to court because you are a Mafia boss and you want your public relations to show ` that you are a man of good intent, the fact is that this million dollars was not charity. And again it gives you zero points. So to be a friend who helps a friend, and for these two people who create this impregnable fortress, they have to be real friends. Otherwise the magic is not going to happen. And there are no short cuts. Magic only happens when you deal a with the real essence of your being. Pretense is pretense. ©Sirolli Institute, Inc. 5 September 1996 Interview with Ernesto Sirolli There is a modern form of thought and there is a post - modern form of thought. The moderns believe that reason is the essence. So the modern era is dominated by reason. Now, years ago, .last century, Blaise Pascal said that reason unaided by the heart is not going to lead you anywhere. Anywhere! Post - modern thought has another dominant thought at the core, and that's passion. Passion is irrational. Tell me what is the rational need to have children? There isn't. Maybe three hundred years ago you'd say children are good, they provide a cheap labor force. But right now, children suck your finances. You know, they cramp your style. What do children do to you rationally? Rationally? Why do we have children? Look at the world population. So why do we have children? So many of the things which occur around us are irrational. Love. Irrational Morality, irrational. Passion is the spring. Without passion there's nothing. Before rationality, there is passion. For instance in our work with people, with individuals, the first thing we do, we don't find out whether the idea of setting up a welding and repair shop is valid. The first thing we do, we assess whether the person, the proponent, is passionate. Because we know that ultimately it is not the technique of welding, not the finances to set up the building that is important. What is important is that there is a human being there who wakes up every morning dreaming, dreaming about manufacturing these things. The first thought in the morning is to go to work in that plant. And if the passion is not there for that work - -we can give people money, buildings, education - -if they are not passionate, they are not going to do it. So passion comes first, and this is what the post- modernists say. And it is so obscure to people they say: "What's the difference ?" The difference is that modern thought says that you should have a building that is rationally designed and the best possible shape of a building is a cube or a parallelogram because that uses all the structure to the best. There is no bits, no frills, nothing unnecessary. Post - moderns say. `Hey, it has to look good,' - -has to have a gable on the top, has to be something that you look at it and say `Hey, that's nice.' Niceness is not rational. Michael: We begin with passion, but is it not also true that the Enterprise Facilitator has to then help this person to manage this passion? ES: There are two components to the work of an Enterprise Facilitator. The first one is to understand that without passion there is nothing. And without the individual being prepared to mortgagee his house /her house, without the individual prepared to work eight hours a day at least into that business, there is nothing. So passion is first, but passion by itself breaks 80 percent of e 'very single entrepreneur who starts a new business in America today. The statistics say that 80 percent of new businesses fail in the first five years. These are passionate individuals. This is a huge cost to the American society through all these people going broke. The highest most serious cause of divorce is financial difficulties. So people go bankrupt, they divorce. So, what's happening there? How come passion cannot carry the, day? Because passion needs skills. ©SirolG Institute, Inc. 6 • 0 0 September 1996 Interview with Ernesto Sirolli It is the blenaing of the .i),eala, the mead aiid the hands which make a business. You need all- three. So the spring, the motive, is what nobody can give you - -and that's passion. Passion cannot_ be given to you, but it can be taken away. As a child I can bash you so, many times that I can beat the hell out of your passion. I can psychologically damage you so much that you can never hold true to your passion. As a child I can make sure that every time you express your love, I dismiss it. 'Don't be silly, what a stupid thing to do, you want to dance.' 'I want to play baseball.' 'No, you should swim.' We've seen that we can very easily beat the passion out of people. But it cannot be given to you. After a presentation, at the end of the day, I had a guy who raised his hand and asked: "Excuse me, how do I get passion ?" And I said, well try red wine, coffee, and garlic, you know, espresso coffee and garlic. And everybody laughed. And the morning after we reconvened, the first thing he asks is: "Excuse me ... T' "Yes ?" "I didn't get it!" And I said "Well, maybe too much garlic." But you see, he was concerned because he understands what I'm talking about, and he looks at his heart and says, "I have no passion for anything. How can I work? How can I be successful ?" So passion is first. But second - -let's say you want to be a painter. You have this passion for painting these beautiful canvases, but you have never learned how. And every time you touch a canvas you look at it and it's horrible. Your passion cannot be expressed. Your passion is infertile, because you have not learned the skills to transform your passion into beautiful work. So, you have heart, but you have no hands. And if you find out, the life of the most controversial painters, the most iconoclastic painters who apparently didn't want to follow anybody, you look at their biographies, and guess what? They all studied painting. They all went here and there. They copied the masters. Because they realized that unless they acquire the skills they will never be great painters. Van. Gough - -you know, the ultimate romantic. You look at his biography. He desperately studied. He copied the masters for days on end. And you look at his paintings and you say, 'Ah, but the guy knew how to draw.' So, these people did not improvise, they learned the skills. In business it is the same. What are the business skills? You need to produce the product, you need to market the product, you need to have impeccable financial skills. Guess what? Nobody can do these three things. This is also the genius of Enterprise Facilitation. We teach something that no business schools teaches. We teach that the three skills necessary to run a business successfully are linked to the individual passion of the individual in charge of the specific field. So we say if a company is to be successful, you have a passionate individual producing the product, you have to have a passionate individual marketing the product, and you have to have a passionate individual keeping exquisite financial books. And then we say that nobody in the world is passionate in these three fields, that every business which succeeds is a team. ©Sirolli Institute, Inc. 7 September 1996 Interview with Ernesto Sirolli And so what we do, we are able to help people who, until the day they met us, have said, " I cannot go into business because financially I am an idiot," or, I cannot go into business because 1 hate marketing; I'm too shy; I will never be able to knock on doors and say 'buy, this. "' And because I do no marketing, or I cannot do financial management, or I don't have wonderful technical ideas, and I'm not an engineer, I cannot run a business." Which is false, false. If you have a vision for something, if you have a great passion for something --look at your heart, what do you love doing? Selling the product? Fine. You can create a company which is based on your strength in marketing, and you can find somebody with wonderful engineering skills to build it. You can find a passionate financial manager to make sure that the finance is covered and you can run a very successful company as a passionate marketing persona You can run a wonderful financial company if you have financial skills because you go and co -op and find passionate people in the technical and marketing sides. So, our genius is in saying, don't believe that the important part is reason; believe that the important part, the starting point, is passion. Then acquire the skills that you don't have, but when you acquire the skills, I mean co -op people who are as passionate as you are in your field, in the fields which are necessary for you to set up a successful company. Bingo! Things happen! So we go and see a very remote little community in a very remote rural state where there is this individual in isolation having passion for product development and a little bit of marketing, but no financial skills, sitting in a workshop saying, "How am I going to do this, I don't have any money, I don't know how to go and find the money to build a bigger plant to set up my welding and repair shop." And then you co -op somebody from the community to become a financial manager who will do that for free initially. You co -op somebody who is saying, this corporation is great and who will act as a marketing person. All of a sudden you get this grouping of passionate and talented people in different fields to come together and form a new company. Michael: We've spoken about an application of this in our conversation this morning in rural areas. Maybe we should speak about urban or deteriorated areas ES: Certainly among the most alienated communities in the world are the inner cities, the neighborhoods. Why are they so alienated? Because very often, when you go and analyze the demographics, you discover the people have been there only for a few years. They come from all over; they're transient people. The community has basically exploded, or imploded -- basically, the structures. The social structures are there to try to keep these people in some sort of physical survival shape. But when you go to speak to the various individuals, you discover that they live in total isolation. The parents live in another town, their grandparents are back in their country, their kids have gone to three or four different schools in the last ten years... ................ _ ..... ......... ............................... _ _ .......... ... ....................... ......... .............. . ©Sirolli Institute, Inc. 8 September 1996 bttemiew with Ernesto Sirolli • Michael: In the ghettos/// bet it,e,iatiiers are gone._. ES: The fathers are. gone. So .what happens is you find out if there is a place where the neighbors are not particularly interested in what's going to happen to you, it is in the cities. In Australia only two years ago there was an article in the paper where in a neighborhood they found a lady in a house and she had been dead for three years. Nobody had noticed. They thought she had gone on holiday, they thought she had gone - back to her country. Until somehow they found this corpse - -after three years! And this level of alienation, you know, basically is the disintegration of our community. Now Enterprise Facilitation makes a jump, a leap of a faith. They say, let's put in the community an individual, assisted by a board, who somehow believes that there are good people, wonderful people, in the community whose only sin they have is they were born in the wrong part of town. People who have intelligence, passion, who have love, who want to improve, but have nobody to even talk about it. And let's do this leap of faith and say, okay, we help you. `Let's do it. Let's do it.' And what happens then is you replace whatever was the tradition- -your aunty, your uncle, your tribal structure. You go in there and somehow you recreate a group of elders who really care. Michael: And this is the steering committee? ES: Yeah. Michael: Discuss the role and make -up of the steering committee in Enterprise Facilitation. ES: Basically, this started when I was working as a consultant to somebody who was pretty remote. It started because the federal government was not prepared to give money to employ a Facilitator. They had to have some sort of an organization which would become legally responsible for the finances. It's like an association, it's like a non - profit association and there are 'many, many different ways they can choose to organize themselves. Sometimes they become direct fiscal agents for the project and they handle the cash. Sometimes they enter into relationship with a fiscal agent which is external to the association. There will be somebody there who needs to justify and respond to somebody, some external agency, which has financed or co- financed this project. And this committee will have to have some structure, some administrative duties or capabilities, a recording system and a schedule of meetings, and this is one part of what this board of management does. Michael: Right. ES: But, that's the legal /technical side. ` Michael. As opposed to the outreach and network. ES: The outreach network is the other very important role, which starts even before the Facilitator is employed. In fact, it is the board which has to go out and recruit the Facilitator. At the initial stage of the life of the board, the board is born out of a steering .................: . ............................... ...................... .....__ ..._ ©Sirolli Institute, Inc. 9 September 1996 interview with Ernesto Sirolli (:Un1111111CC, al l J the steej ll lq 1.011111 u11cC is . simply a group os 1 - peup;6 vu ho have involved themselves, or who have been approached because of their specific networking skills. We have two different kinds of people on the committee. We have people who are there because of' technical skills, because of their perceived network in business - -maybe they are attorneys, maybe they are accountants, maybe they are bankers. But then you have people who are just the salt of the earth kind of people who represent on the board the kind of pride in their own community and this absolute willingness to see things happen for their local community. So, what we want as a major criteria for everybody is the commitment to their community. If they don't believe in their own community, forget it. And we need people who are not negative because what we will try to do is so difficult. And we need people who have credibility in the eyes of the community. So what you want is that the sum total of the committee is very very substantial in terms of the mass that they represent and that they are very supportive. It is like wanting to help somebody to shoot for the stars, and clients are people who only have a very small orbiting satellite. The way we get them to the stars is that we create a committee which has such a mass, which is like a planetary mass, very solid, full of people who have weight in the community collectively. And then what happens is that you have this little satellite which goes like beep, beep, beep, and gets attracted, gets spun and shot into the stars. Michael: So, Ernesto, just to review for just a moment. We're talking about why a steering committee is necessary. We were talking about the criteria for selection. First of all, it's a vehicle to hire a Facilitator. They monitor how money is spent, they become a fundraising mechanism, they have a big informal network. We talked about credibility in the eyes of the community. We talked about their love of community, their passion for community, and we talked about two of kinds of people on the committee, tech people with technical skills -- attorneys, lawyers, marketing, advertising people and then salt of the earth people, that the key thing being their commitment to the community, their positive mental attitude, that they can make it work, and in sum total there is this collective weight, this mass the group has. Anything that you would like to add to that? ES: We should divide the role of the committee 1) in legal, technical role and 2) would have to be the networking role to assist the Facilitator. And among the technical, legal, we have to mention things like being the fiscal agent for the project, being responsible for the funding, be legally incorporated to be able to operate and able to employ the Enterprise Facilitator. They have to think about the liability and insure for possible liability, and they have to be organized and be able to hire and fire not only the Facilitator, but eventually some secretary or assistants if and when they become a necessity. On top of that, legally and technically they have to justify how the money has been spent; so most probably they will have to have a treasurer or. secretary to create some documentation. Michael: So there needs to be some structure, just like a regular organization ES: Sure. They have to have a bank account, they have to be able to place ads in the paper to recruit somebody. ..................... ....... .. .......... _.... . ._.. ...... __. ©Strolli Institute, Inc. 10 September 1996 Interview with Ernesto Sirolli Michael: cJl me about the role of-leadership In getting the steering committee together. ES: Well, initially, there is an education phase, whereas the Sirolli Institute representatives are approached by a local organization to explain what Enterprise Facilitation is. Very often the people who approach the Sirolli Institute are people who have heard of Enterprise Facilitation from some other sources and very often the people who approach us have already made a leadership decision. 'We are interested, and come and see whether you can convince other people in my community to embrace this approach.' When this initial leadership group sees that the approach is of interest to their community, then they will ask, how do we go about setting up this program? And what happens is that immediately we have to start networking and help them to start networking because this project will not happen without some funding; and the funding is not going to happen without a considerable interest in that community. Michael: Let's talk about funding, or fundraising, for just a moment. ES: Okay. The fundraising historically has come from local, state and federal... Michael: Programs? ES: Funding sources, not programs. State and federal funding sources. Not only sources which were originally interested or dedicated to small business development, but also sources which were dedicated to rural development and community development. employment and training. So in America it seems that one obvious source of funding for this project is the county with the assistance of cities. Michael: Okay. Tell me how this has been received in general by the economic development committee. ES: Well, traditionally we get opposition from personnel in agencies which have to do with economic development. That's pretty simple, pretty straightforward. The reason is that they believe that they are doing a good job no matter what they're doing. And if they would not believe that, they would not be able to hold the position. So, to see another project being promoted in their own community - -it can be seen as threatening, especially from people who are particularly insecure. The fact is that Enterprise Facilitation offers such a dedicated service to individuals on a one -to -one basis that the great majority of people employed in economic development today don't involve themselves with individuals on that type of one -to -one basis. What they do is try to pick the best of possible projects and the most rewarding. Michael: Talk about, for just a minute, this caring, this vast caring. ES: What you do, you have to go out and you have to find people who have the same passion that you have for the community. And these people maybe have no qualifications; maybe they have no academic degrees; maybe they've never been ............................... ... .............................. I.. ........... ©Sirolli Institute, Inc. September 1996 Interview with Ernesto Sirolli involved before in any substantial work, charitable or community work. But these are people who have networks --you know, they run a grocery shop, they know everybody. Michael. The steering committee? ES: This board of management, the steering committee: What happens is that you go out and you find a bunch of people who are prepared to share the dream that you have, who are prepared to work with you. They say okay. If you find somebody who needs help- and this help could be to find an accountant, to find somebody who has experience in opening a delicatessen, somebody who has experience in setting up a taxi service; you find somebody who has experience in setting up and running Laundromats; and you want to give your client some advice. And what you do is you create this group of people, and you explain to them what Enterprise Facilitation is. You try to get them to understand this wonderful gift that they can give. It's not money. Just help. Listen. Introduce some of your resources and friends, your contacts, to our clients. You do that and what happens is you then create what I call a planetary mass to help all these little satellites to shoot for the stars. And you have this little group of people - -ten, eleven people -- they've all been there. They've all done that. They are known in the community. They know the community. They could be ladies involved in the preschool. Everybody knows them. They admire them. It could be somebody who is a lawyer, who works in the community, or somebody who's a bank manager, a bank manager who knows people, has resources. He knows how to find resources. You have this group and this group becomes a very solid group. And then you have these individuals who are this tiny speck of satellites who come beeping toward this mass and like a planetary mass - -what we .will do, we'll just, when this planet has done all the effort to kind of find us, has the passion to travel, comes near us, is attracted to the orbit of this mass and the gravitational pull of this mass pulls them around, and shoots them to the stars. And that's what we do. But you see this mass does not go to the satellite. You see, we are here. Unless this satellite has some energy, passion to come and look for us, and has the ability to make the journey to come towards us, we cannot go there. You see, we don't motivate people. We don't go out and say, you should shoot to the stars. We don't do that. But if you want to shoot to the stars, and you want to spin, we give you a spin, like you never had a spin. You want to find who can help you; we find who can help you. You want to find some money; we'll find some money. There are one million ways of helping someone who wants to be helped. But we cannot go out and say to people, you should do this. Now, people, say in neighborhoods, in inner city projects, say you don't find people with passion there; you find a devastated community; you find people who are absolutely the lowest possible. I don't believe so: I believe that if you look at the community from a distance, you only see devastation; when you drive through, you only see graffiti. But if you take time to actually become accepted, and if you have time to create a relationship where people come and talk to you, the first thing they will talk to you about will be their dreams. And so even in a devastated community, I maintain, there is always somebody .............. ........... ............... .__ ......... __ .... .. ..... .._ ..... ........................._,..._ ©Sirolli Institute, Inc. 12 r Septeinber 1996 Interview with Ernesto Sirolli right now, with a dream And if you can concentrate on helping that person and then use the success of that first client as a demonstrator for other people in the community, then you will see the magic happen all over again. And the magic of this project is proven by the fact that everywhere there is somebody with a dream, and as soon as you help one person, the word spreads and more people come. So it's a wonderful self- fulfilling prophecy which says don't be concerned about the big solution, don't be concerned about the massive permutation. Help one person! Michael. • Isn't there a law in that, the law of the one? ES: Well, I believe that ultimately once you help one person you have put in place the mechanism that unlocks the community.' And one of the greatest ever presents that I've been given was by somebody in the community, a county commissioner, who after six months of my work in the community, remembered and recognized the fact that ultimately the only thing I had done differently from what they had done before was that I had started trusting. And he said, "Isn't that amazing that somebody had to come from so far away to show us that our own people were worthy, and that by trusting, and hPlninn thic first client PvPr\rthinn �AIOI dri i inlnt -k." And it's the theory of the crystal seed. You have a saturated solution which is not crystallizing in a glass. You put salt in water, and everything is there, and still salt is in water, is not crystallizing. Then you drop this grain of sand in this saturated solution and as soon this grain touches the surface, the entire thing crystallizes. And basically the Facilitator does the same, and everybody who has used this will attest to the power of this initial loving. You can ask anybody anywhere. Michael., Is this the power of compassion? ES: This is the power, what I call, passion to the cube [or you know] to the square. Passion to the square, passion and passion together. I am extremely passionate about my clients. They come to me with their passion and I reinforce that passion with my passion for their success. And all of a sudden his passion or her passion and my passion are not one plus one. It's the square of passion. Michael: The word passion is not understood by many. They have a superficial understanding. ES: I think passion is very much confused by the passion of romance and roses -and violins and Hollywood passion. Well, passion has a very different origin as a word and not very many people know that passion in fact comes from a Latin word passio which means to suffer. And only when you hear that do you understand why we use the word passion to describe what happened to Christ on the cross. And we call it the passion of Christ because Christ was suffering. So when I talk about passion fui buaiiius6, when I talk about passion for painting, I am talking about to suffer for. There is no romance and roses here, there are no violins sounding. I am talking about the individual cross each of us carries when we understand who we are and what we need to do in life. Once you are committed to the point of suffering, you are passionate. ©Sirolli Institute, Inc. 13 September 1996 Interview with Ernesto Sirolli I was reading an interview recently about all these great Olympic champions. [There was] a runner and he was saying in this interview that he cannot remember a day when he ran without an injury- -and these people don't go for a little run. Now, you imagine running 200 meters on an injury. Imagine doing that. And imagine doing that 360 days of the year, constantly in pain. Imagine that. This is a passionate athlete. Now what I am saying about passion is that when I talk about this life force, when I talk about the commitment that you make to yourself and to the world, I then use the word passion. And when you understand my definition of passion, you take notice. And then when I say that only passionate people can be successful, it is because in my definition of success there is this component of fully, fully loving whatever it is that you do. Loving it to*tears everyday. Let's look now at small business. Small business is hell. There is no business like small business. You cannot fire your employee; you are your employee. You cannot tell your boss to go to hell; you are your boss. Nobody else is going to open the business today if you don't go. What kind of life is that? And yet I have constantly people saying to me 'I want to start my own business. And I look at them and say: Are you sure? Do you realize what you are doing to you? Are you now unemployed? "No. I have been employed in this company for 15 years and they pay me very well, but I am not realized. I am not fulfilled. My passion, my dream, is to run my own small business." Yet another proof that passion comes before reason. Michael: Is this part of a persons `path "? ES: Yes. There is no choice Michael: Talk about path. ES: There is no choice. We do what we do not because we want to. We do what we do because we have no other choice. I believe strongly, sincerely, that we are here because we are meant to do something, and this something is sometimes something that is so strange. I have met people who were born in the mountains in Central America and they want to be underwater camera operators and work with dolphins. They can hardly swim! But they are determined that that is their path. There is no reason why somebody becomes a poet or somebody becomes an artist or somebody becomes a doctor. There is no reason. There is something that has to do with our makeup. Michael: Is there a path for every man? ES: I believe that ultimately that is there not only a path for every man, there is an inevitability to the point that if you don't do what you feel in your heart you should be doing, you miss your life. And the ancient Hebrew word for sin comes from to miss. If you miss your call you basically are missing your life. You are a sinner. ........... __ I ..... -—. ......... ........ ....... _. __ JSirolli Institute, Inc. 14 September 1996 /nlemetr kith Erneslu Siralli. Michael. Achiddia? ES: Exactly. There's a beautiful word that has been so badly mismanaged in the English language. There's a beautiful word in the Latin that has been translated in English wrong and this needs to be understood. You have a word in English which is sloth and sloth is one of the seven deadly sins in theology - -some others are avarice, lust greed -- but sloth in Latin is Achiddia. And again, Achiddia is one of the seven deadly sins. You have translated it as sloth. Now if you ask people what sloth means, they will tell you that sloth is laziness. But that's not at all what the Latin equivalent meant. Achiddia is the sin of failing to do in your life what you know you ought to be doing. So sloth is not laziness at all! Achiddia says that in your heart you know what your path is. Nobody else knows, but you know; and if you listen to yourself and you find what your path is and you then don't follow your path, you are a sinner and you are going to hell. Now look around you. How many people do you know who even thought about what they should be doing; or they have made a decision not to do it. How many people who wanted to be involved in writing, in making music, in working with children, in working in making videos are not doing that? Instead they are employed by somebody else and they are doing something that they hate. What they should understand is that if they don't do what they know in their heart they should be doing, they are missing their life. That's it. And according to Christian theology, they are sinners because you see it was the Lord who gave them the talent they have now chosen not to use. They are basically saying to the Lord, you made me to use my talents, but I prefer a job; so I'm not risking anything. And if you remember the parable of the three talents, it was exactly about that. The Lord came and gave a golden talent (and a talent was a Roman coin). And so he gave a talent to the three brothers, one talent each and went away. And one brother invested the talent, used it, and made a fortune. Multiplied his talents. His other brother went out and used his talents - -all his money and lost it. The third brother dug a hole in the ground and buried the talent because he was too scared of losing it. When the Lord came back, the Lord praised the first brother who had made money out of it; praised the brother who had lost it; said you have done well, you have used your talent my son. You see, he praised it. But the Lord was very angry with the third brother who buried the talent. I have given you the talent to use it. I have not given you the talent to put in the bank - -use it. So this is the meaning of the individual path that we have. L We are all different, we have all different talents - -in some extraordinary and infinite permutations. You never find two people who want to do the same thing. Two people who want to be journalists but not in exactly the same way. For instance, two people want to be sports journalists, but one wants to specialize in baseball and one in basketball. It is impossible to find two people identical. The two journalists, one is more an extrovert who gets his articles by talking to the players, the other one is a statistical, you know, kind of research journalist who will have all the statistics about all the games in history. ......... ......... .......... ...... ......... ...... ............................... ........ ... _ ......... ...... ...... ..... .... .......... .................................................... - ©Sirolli Institute, Inc. 15 September 1996 Michael. Isn't there a theological implication in terms of the economy of society? Intemiew with Ernesto Sirolli ES: There is- a cosmological implication and,its about diversity. And this is extraordinary. This is about the importance of chaos. Chaos theory. Because you see again, chaos theory is post - modern. Because modern theory wants the universe to make sense! Universe has mechanics. Chaos as universe, as passion, rioting energy. Now, what happens is that the idea of infinite diversity is so beautiful, so extraordinary. And when you look at the cosmological effect, when you look at these billions of people on earth, each created with DNA chains made of trillions, trillions of components - -the most complex, the most exquisitely complex system is DNA. And before you were talking about permutations which are of a magnitude which seem incomprehensible and you look at the meaning from a cosmological point of view. You see that really reason cannot understand what is the purpose of this complexity that blows up in the face of thermodynamics- -the system should in theory decay by loosing energy except human life which reproduces at increasing speed and complexity. And isn't complexity energy? The alchemy starts with an individual who has not lost the dream. The alchemy starts with the individual. One of the three brothers who has a talent and now this brother who has been given the talent by the Lord goes out and wants to invest it. Set up a software company. OK, so what you do is you help to set up a successful software company. But by doing that you have touched the lives of so many other people around, such as the people who watch you. People get energized because of that success story. So what's happening there is you have a multiplier effect. And you have an economic system which then starts to recognize that minute that you don't have to look far to find these people with this golden talent in their hand looking for something. They're there. And so what you have to do, you have to basically have this faith that they are there, their talents have been distributed in abundance, in very strange permutations, infinite permutations. And you find people who are there, in isolation maybe, maybe in a very poor community, but they are there. Once you accept and recognize that your starting point is one individual with a dream and when you accept in your heart that such an individual is now out there desperately looking for somebody to help, then what you have to do is set up a system which acts as a radio receiver, this aerial, this antenna in the community. And what happens is that you create this antenna able to capture these faint radio signals from people saying, you know, I have a dream. And when these people are attracted and they come to you, and if they tell you what their dream is, your 50 percent there to be able to assist because really the difficulties, the technicalities, are not the big problem. The problem is to find someone to come and open his heart or her heart and say, this is my dream. That's the difficult part. And then once they come and they talk to you, you use your network, the network that you have established in the community. You use the network and you find the answer. The mind boggles when you think about, for instance, communication technology. What will happen when we will have 100 Facilitators in 100 communities dealing with hundreds of clients each? And all these Facilitators will be linked electronically to each ... ........... . ............................... .... ... _ .......... _ .......__ ©Sirolli Institute, Inc. 16 i _ September 1996 Interview with Ernesto Sirolli V other and millions of people all over the world. Do you think it will be difficult to find information for a client? See, it's to find a client which becomes difficult, not to find information to help them. It's to find a crient, the person with a passion who trusts you so much that he or she is prepared to come and confide the dream. Michael. In western society is there a shortage of capital for business? Is that what the problem is? ES: The problem is never money, never money. The problem is always management. Banks are full of money. Micro loan funds have more money than they give out. Everyone is looking for the next good new project that they -can invest in. Every time there is a good idea, well managed, they go straight to Wall Street_ Companies that have good ideas, good technology, good management, they raise hundreds of millions of dollars. Why? Because business is about people, it is not about money. It's about people, even today, its about people. And if you have a team of very good people with proven experience who can produce the product, market the product, keep exquisite records and have the ability to come up and present this plan to the market, the money would be found. So the conception out there is that there is no money, especially for small projects. What happens in reality is that when you talk about a small project, somebody needs $5,000 or $10,000, the person going to ask for this money is one individual in isolation who does not have the skills which are necessary- -the production, the marketing, the financial skills are missing. So one goes to the bank as an individual saying, I need money. The bank will immediately recognize the weakness of this proposal. And the bank will do one of two things. If the person has collateral, the bank will lend against the collateral. If the person has no collateral, it will reject it. And the person will go home saying, the bank didn't give me the money and everything is about money and without the money I will not be able to set up the company. What the person doesn't realize is that it wasn't the money. The problem was that he or she went to the bank with something that the bank did not see as a viable, well- managed proposal. And what happens is that people become bitter, resentful, about not having money to do things when probably they are far from having something organized which is seen and perceived as a viable product, with a viable marketing plan, with a viable financial organization to be able to form this dreamvnto a viable business. The way I check out the money side is by asking individuals to imagine now for a minute that you have a very poorly managed company and you give this company $10 million. What are you going to do? They have horrible management. What are they going to do with $10 million? They are going to waste it. But now imagine that you have a company with no money whatsoever and you put exquisite management in the company. What's going to happen to the corporation? ©&rolli Institute, Inc. 17 September 1996 Interview with Ernesto Sirolli They are going to make money.. Sometimes starting with money is no guarantee for success .unless they have the khow -how. Passion, know how, practicality and hard work. Discover passion in the heart; discipline the head for management; be practical about the reality of life and keep your hands steady on the plow. That's the Enterprise Facilitation TM model -- heart, head and hands. Dr. Ernesto Sirolli by Mr. Michael Utter Excerpted from dialogue of September, 1996 ©Sirolli Institute, Inc. 18 • HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 32 Agenda June 16, 1997 Issue Statement: Continuation of a public hearing and consideration of a resolution authorizing the sale of 6629 Washburn Avenue to Ken and Reidun Stack, husband and wife, of Hopkins for Richfield Rediscovered single family home development. Background: The HRA purchased a property in the 6600 block of Washburn Avenue for the Richfield Rediscovered Program. The lot has been subdivided into three 50 -foot lots. The site at 6629 Washburn Avenue is the northern -most lot. It is proposed that the HRA sell 6629 Washburn Avenue to Ken and Reidun Stack in accordance with a development agreement, similar in form and content to those previously used under Richfield Rediscovered. The remaining two Washburn lots have been reserved. The home has an estimated value of $150,000 upon completion. The recommended motion requests that the HRA sell to the future homeowner as the builder. Ken Stack plans to act as the general contractor in coordinating and financing the project. This request departs from the program guidelines in that Ken Stack is not an experienced contractor or homebuilder. Thus, the sale is not to a builder, and approval of the sale would be a program exception at 6629 Washburn Avenue Recommended Motion: Following a public hearing, adopt the resolution authorizing the sale of 6629 Washburn Avenue to Ken and Reidun Stack, husband and wife, and the execution of appropriate documents by the HRA Chair and Executive Director. Basis of Recommendation: 1. Ken Stack is acting as the general contractor with other contractors as specified on the attached list. Mr. Stack has demonstrated diligence in coordinating and selecting the subcontractors. 2. Ken Diethelm Construction Co., the carpentry and project superintendent, builds additions, general remodeling, reroofing and decks in Victoria, Minnesota. The Building Official in the community indicates no past problems in complying with building code requirements. 3. Best Rate Mortgage Co. has indicated a preliminary commitment for interim construction and permanent mortgage financing for Mr. Stack for the proposed house. The lender has not reviewed the conditions of the Contract for Private Development yet to ascertain how the HRA's requirements will affect project • financing. This is anticipated to occur during the week of June 16. . 4. The HRA has acquired 6629 Washburn Avenue for the Richfield Rediscovered Program. 5. The Planning Commission has determined that a single family home at 6629 Washburn Avenue is consistent with the Comprehensive Plan. 6. The terms of the development agreement, except as noted in this letter, are in conformance with program guidelines. 7. Public hearing on the sale of 6629 Emerson Avenue is continued from the May 19 HRA meeting. Alternative Recommendation: Do not proceed with the sale of 6629 Washburn Avenue to Ken and Reidun Stack, husband and wife, and direct staff to find another buyer that conforms to the program. Discussion /Decision Mode: Closings would occur in late June or early July with construction starting soon afterwards. The site clearance work is completed. Z eectfully submitted, n"L. D vich Acting Executive Director SLD:cak • 0 HRA RESOLUTION NO. RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 6629 WASHBURN AVENUE TO KEN AND REIDUN STACK, HUSBAND AND WIFE, IN ACCORDANCE WITH A CONTRACT FOR PRIVATE DEVELOPMENT 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 Description 6629 Washburn Avenue Lot 19, Block 7, Tingdale Bros' Lincoln Hills 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 Contract for Private Development negotiated as follows: Performance Address Sale Price Security Builder 6629 Washburn Avenue $30,000 $30,000 Ken and Reidun Stack, is husband and wife 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 6629 Washburn is authorized to be sold for $30,000 to Ken and Reidun Stack, husband and wife, in accordance with a Contract for Private. Development with the HRA. 2. The Chairperson and Executive Director are authorized to execute a Contract for Private Development and other agreements as required to effectuate the sale to Ken and Reidun Stack, husband and wife. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 16th day of June, 1997. Thomas E. Harms, Chair ATTEST: Is Michael Sandahl, Secretary 0 0 6629 WASHBURN AVENUE SOUTH YT 1-al 3 FRONT ELEVATION LEFT ELEVATION REAR ELEVATION 0 RIGHT ELEVATION ps ICI ICI Iii ICI OF ---------------------- ------ --ullarnmans- YT 1-al 3 FRONT ELEVATION LEFT ELEVATION REAR ELEVATION 0 RIGHT ELEVATION ps ICI ICI Iii ICI OF is noon G ST�.7 o Z4, ICY LL ro 10 Cl- Fue IL 1;\- LpeE (=AL 77- —5�5iz� RZ aer PL CL ISO rb U-1 MAIN FLOOR PLAN i O! I r� i 2Jec sT R \�� DEEP I i. NiLL {''• C0.CPET ALA /I 1� S.LL �i 2xry- 1G'ac. I 't d 4 ^GA6 8t, t I j 1 1q '17, i 1 h QfC6 -SrJ� t`ec � E FT4 — i \ t j•COU RSE ax 8.c 16GL .+ '— _��.. `� `1, Cl�utaSE \2.8x.100- g I `Sr �L0.7R DtaN 2 O _ 12' N, �L•Z b�, �` '9� .i V \1JSt1t. VPPEC. / l b }• ` ��, .'i`^ � YZ of wa.t�. !u iUSIttATE IQ � I ��'� .610 r f FIR.H PES'AP AVAFbR ((�I _ r/ DsAk -t E•IL f(r, FuatSH� - - - - i oMtT Tom COVRCE LOWER LEVEL • • . (1:.1 �4 4Zm bull i C MOKF Ty P,-t- 6629 \jgAsttRcARrJ AVf5• —50- E N S w FEAm�REs • ENTRY AMA - GED{tR RAIUNC:� MA7cc IIN6, f+WSE SII7INCq W 17H FLOWER BOX 'TOP C SEE S�tMFtE PIX FOR CowCEpr: ) SIDE AWI> GROtAN> LIQW7 N61 -ro - u G t 7 ENTRY01ALK. �N DSCf�P� VJ E, �L?zt�l t=X I ST7 N (� 60 PT. FJ Aq 'TREE �r ALLG y i C9• P,�VfR: S Pr. s I t lE CLjOaw4*►(=-s v Ik3 FT. 1}OV &E -M ALL£\/ pLgN-nN GS 1,5PSzlt16 SNow cRA3APPLE TREE 2.TAuNTON 5PRSkDING YEW 3.FLOWERING WEICELA FLOWERING WE 16.ELA 5, DWARF NORWAY 5PRuCE7 6. rAUN-MO SFRE\DIN4 Yew 7. BU5H f4oNEYSUGK.LE -S $ . F aER/VEE,4IE G,ARME 4 �e 54iRug ROSES 10. VI BUPNUMS 11. AWL. ACCENT F1oWER5 I N VARIOUS STY' • • CONTRACTOR Ken Stack Best Rate Mortgage Co. Hedlund Engineering Services, Inc. Ken Diethelm Construction Co. C.H. Carpenter Lumber Co. Tonka Building Supplies Co. L & R Landscaping & Concrete Co. Richfield Plumbing Co. American Electric Co. Menard's Metro Horne Insulation Co. Minnesota Exteriors, Inc. Minnesota Asphalt Co. Larry Puchta Painting The Workbench With - the -Grain Flooring Co. Carpet City Williams Drywall Duane Farr Heating The Tile Shop Twin City Garage Door Co. Marilyn Dreon Magnuson Sod Co. Bachman's Shadywood.Inc. SERVICE General/Owner- Resident Construction & Mortgage Financing Survey Carpentry/Project Superintendent Building Material Windows, Doors, Millwork Rough & Final Excavating/Concrete Plumbing/Sewer & Water Hookup Electrical Cabinetry (kitchen & bathrooms) Insulation Gutters & Downspouts Driveway Painting & Staining (in & out) Built -in Cabinetry Wood flooringfinstaliation Carpet & Linoleum/installation DrywalUTaping/Ceiling Spraying 3 -Zone Hot Water Heating Bathroom Tile/installation Garage Door /installation Wallpaper Installation Sod LandscapingiPlants Tree Removal (if necessary) TELEPHONE NUMBER 932 -7116 or 504 -6339 (work) 540 -9490 888 -0289 443 -2172 443 -2681 557 -1278 935 -0389 869 -7517 560-4653 541 -9300 894 -4939 881 -0173 934 -8876 935 -0700 930 -9801 653 -1009 935 -2149 861 -6100 595 -8457 541 -9720 894 -8500 929 -1537 869 -6992 861 -7600 933 -0614 HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 31 Agenda June 16, 1997 Issue Statement: Public hearing and consideration of a resolution authorizing the sale of 7600 Emerson Avenue to Rockport Homes, Inc. for Richfield Rediscovered single family home development. Background: The parcel at 7600 Emerson Avenue is a residual piece of land that resulted from the 77th Street project. On June 9, the City Council approved sale to the HRA after a public hearing and second reading of the transitory ordinance. The ordinance would become effective 30 days after publication. Therefore, a mid -July construction start is possible. Rockport Homes, Inc. has proposed a three unit, attached townhome design. Each unit would be owner - occupied, each valued in the $160,000 to $180,000 price range. Each would have its own garage and full basement. Rockport Homes, Inc. has interested buyers in two of the units. A neighborhood meeting was held on April 30. The neighbors were supportive of the concept and design, and expressed the need for such living options in Richfield. The sale price of the land is $50,000, based on appraisal. Recommended Motion: Following a public hearing, adopt the resolution authorizing the sale of 7600 Emerson Avenue to Rockport Homes, Inc. and the execution of appropriate documents by the HRA Chair and Executive Director. Basis of Recommendation: 1. Rockport Homes, Inc. is experienced, capable and financially secure and has built several single family homes through the program. 2. The City Council approved sale of 7600 Emerson Avenue to the HRA after a public hearing and second reading of the transitory ordinance on June 9. The Transitory Ordinance will be effective on July 11, 1997. 3. The Planning Commission found the proposed development to be consistent with the Comprehensive Plan. 4. Both the Planning Commission and City Council have reviewed and approved a Conditional Use Permit which allows townhomes to be developed. 5. The terms of the Contract for Private Development have been negotiated and are in conformance with program guidelines. • 6. Notice of public hearing on sale of 7600 Emerson Avenue was published June 4 in the Sun Current. Alternative Recommendation: Do not proceed with the Contract for Private Development and direct staff to find other buyers. Discussion /Decision Mode: Closing would occur in July 11, 1997 following the effective date of the Transitory Ordinance which allows the sale. Res ectfu ly submitted, n L'. evic V Acting Executive Director • • HRA RESOLUTION NO. RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY • LOCATED AT 7600 EMERSON AVENUE TO ROCKPORT HOMES, INC. IN ACCORDANCE WITH A CONTRACT FOR PRIVATE DEVELOPMENT • 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 Description 7600 Emerson Avenue Lot 1, Block 2, Cloverleaf 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 Contract for Private Development negotiated as follows: Performance Address Sale Price Security Builder 7600 Emerson Avenue $50,000 $50,000 Rockport 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: A public hearing has been held and 7600 Emerson Avenue is authorized to be sold for $50,000 to Rockport Homes, Inc. in accordance with a Contract for Private Development with the HRA. 2. The Chairperson and Executive Director are authorized to execute a Contract for Private Development and other agreements as required to effectuate the sale to Rockport Homes, Inc. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 16th day of June, 1997. ATTEST: Michael Sandahl, Secretary Thomas E. Harms, Chair -- ----- - - - - -- i �I 60 Doc 41r I \I I I I I i C►r4NGED 10 -12-94 I I (35i I ul R� 13 � 13 Q1 I .. •o.. i A . / SUB • ECT gZi 134� 5A i I �j 30 30 I W QI I I =Lo 10-1 CHANCED LLJ 1011 -94 I C I i I I I� 7600 EMERSON AVE DEVELOPMENT LEGAL: LOT 1, BLOCK 2, CLOVERLEAF A DRN \\ I I • S� �j z� r- Q ,s r s H O 3 c 0 N L d W 0 ti c O H i W