04-21-97 agendaCITY OF RICHFIELD
REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
. RICHFIELD CITY HALL
COUNCIL CHAMBERS
MONDAY, APRIL 21, 1997
7:00 P.M.
AGENDA
CALL TO ORDER
APPROVAL OF MINUTES OF (1) SPECIAL JOINT HRA/CITY COUNCIL /PLANNING
COMMISSION /COMMUNITY SERVICES COMMISSION MEETING OF MARCH 17,1997;
(2) REGULAR HRA MEETING OF MARCH 17,1997; AND (3) SPECIAL HRA MEETING OF
MARCH 24, 1997
1. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON THE
AGENDA
2. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING SALE
OF 6601 BLOOMINGTON AVENUE (FORMER TIP TOP CAR WASH SITE)
HRA LETTER NO. 17
3. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING SALE
. OF 6205 MORGAN AVENUE TO SHADE TREE CONSTRUCTION, INC. AND 7415
THIRD AVENUE AND 2517 WEST 70TH STREET TO ROCKPORT HOMES, INC.
FOR RICHFIELD REDISCOVERED SINGLE FAMILY HOME DEVELOPMENT
HRA LETTER NO. 18
4. CONSIDERATION OF THIRD AMENDMENT TO CONTRACT FOR PRIVATE
REDEVELOPMENT BETWEEN TOLD DEVELOPMENT AND RICHFIELD HRA FOR
MERIDIAN CROSSINGS PROJECT
HRA LETTER NO. 19
5. STATUS REPORT ON RICHFIELD REDISCOVERED PROGRAM
HRA LETTER NO. 20
6. REPORT ON SECTION 8 RENT ASSISTANCE PROGRAM
HRA LETTER NO. 21
7. EXECUTIVE DIRECTOR REPORT
• 8. 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. 21
Agenda April 21, 1997
Issue Statement:
A report on the Section 8 Rent Assistance Program.
Background:
This report about the Section 8 Program includes:
• A program description.
• The program purpose.
• Staff and financial resources involved.
• User feedback.
• Program strengths and concerns.
• Future possibilities.
One objective of the report is to have the HRA become more familiar with the program
and the staff that administer the program.
The Section 8 Program is a federally funded rental subsidy program which originated in
• 1975. During the initial years of the program, the HRA shared administration of this
program with the Metropolitan County HRA. However, this arrangement was not cost
effective to the HRA. Since 1988, the HRA has administered the program cost
effectively and directly with HUD. The purpose of the Section 8 Program is to assist low
income families, elderly, and persons with disabilities with meeting their rental expense.
The Richfield HRA receives federal funding to provide assistance to approximately 230
households under the Section 8 Voucher Program. Program participants contribute
approximately 30 percent of their income towards the total rent, with the Richfield HRA
paying the balance directly to individual landlords. In addition to being reimbursed by
HUD for these rent subsidies, the HRA also receives approximately $51.65 per unit
each month for administering the program. Richfield currently has a waiting list of
approximately 450 applicants. Selection for participation is based on availability of
funds as units turnover and clients leave the program. Applicants with federal and /or
local preference are selected first. Preferences are for:
• Excessive rent; rent is 50 percent of income or greater.
• Living in substandard housing.
• Involuntary displacement from housing.
• Richfield resident.
• Employed in Richfield.
40 Applications for all bedroom sizes were last accepted in May of 1996.
In addition to Richfield's own voucher program, the Richfield HRA provides rent
• subsidies to approximately 135 households under the portability process. After they
have lived at least one year in the community where they were issued a certificate or
voucher, Section 8 Program participants may relocate to other jurisdictions. They are
then serviced by the community to which they relocate. For those moving to Richfield,
the HRA receives 80% of HUD's administrative fee for servicing these program
participants, or approximately $41 per month per client. To date, Richfield has
approximately 65 voucher holders who have ported to other jurisdictions, with
approximately 135 households porting into Richfield. This means a net increase of
about 70 units (135 units in - 65 units out). It also means that the Richfield HRA has
received twice as much in administrative fees for program participants moving into
Richfield from other communities, compared to fees paid for those moving out of
Richfield. The net income from these fees insures that this program is self - supporting
and provides the operating reserves required by HUD.
Periodic surveys have been sent to both tenants and landlords for feedback on staff
responsiveness and comments on how the program is operated in Richfield. Richfield's
staff has always received very high ratings of satisfaction from both tenants and
landlords. Just recently, staff has also become involved in giving presentations in
coordination with the Public Safety Department concerning the Crime Free Multi
Housing Program. This, too, was very favorably received by landlords. Presentations
are also given to the Richfield Apartment Managers Association (RAMA).
The Section 8 Program helps households with limited income to secure decent and
stable housing. Without housing subsidies, employable households with $15,000
annual incomes will pay more than 50% of their income towards rent. Thus, demand
will continue to be great with the new welfare reform. Many of the clients served
already are employed. With the new welfare requirements, many more will be
introduced into the job market. Some of these individuals are either under trained,
uneducated or mentally or physical unable to obtain employment above the minimum
wage. For these individuals, the Section 8 Program will be extremely important in order
for them to be housed.
Perceptions about the Section 8 Program can be a concern. However, both program
participants and Richfield renters, in general, look for a safe, well- maintained
environment that provides a sense of community. Section 8 tenants are typically not a
source of problems, general tenant problems are largely being eliminated to a large
extent as landlords participate in the Crime Free Program and do thorough checks on
references and credit.
The future of the Section 8 Program is secure for the next few years, but HUD is signing
shorter term contracts now with housing authorities, so it is uncertain what the long term
funding forecast will be for this program. Staff will continue to monitor funding
. opportunities to support affordable housing needs. Affordable scattered site rental
housing for larger families will always be in short supply. One thing is certain, rents
keep going up and become less and less affordable. The demand for rental assistance
and other social programs will continue.
Kathy Lovick had planned to present the report. However, after 22 years of service to
the HRA, Kathy has opted for an early retirement and travel with her husband. A
replacement has been identified, Lynnette Chambers. She is scheduled to begin April
24, 1997. Ms. Chambers has eight years of experience in Section 8 Program
administration with the Minneapolis Public Housing Agency and is a Richfield resident.
Lori Lindberg, Leased Housing Assistance recently accepted a position of Executive
Director of the Cambridge HRA. Her position is presently being filled.
During the interim period of staff changes:
• Susan VanDerveer, Community Development Technician, will continue to manage
the waiting list and new application processing.
• Dave Schaffer, the HRA's Remodel Advisor, will perform apartment inspections as a
trained Section 8 Inspector.
• Sue Weisman, a Program Specialist for the St. Louis Park HRA, will be able to work
part-time to ensure that month end payments to landlords occur and additional
administrative support is available.
Attached to this letter are key program handouts received by participating tenants and
landlords.
Recommended Motion:
Accept the status report on the Section 8 Rent Assistance Program.
Basis of Recommendation:
1. The HRA wants to receive housing program reports to be better informed.
2. The update is timely given the administrative changes presently underway.
Alternative Recommendation:
Defer the Section 8 Program report to another time.
Discussion /Decision Mode:
Lynnette Chambers is in the audience and available to be introduced.
bmitted,
Jame�TProsser
Executive Director
JDP:ds
•
HOUSING QUALITY STANDARDS
THIS IS AN IMPORTANT NOTICE THAT WILL HELP YOU
FIND A GOOD PLACE TO LIVE!
The home you choose must meet the Housing Quality Standards (HQS). The Richfield HRA
must inspect and approve your choice.
CAUTION! If the unit was built before 1973 and you have children under age seven (7), there
must not be any chipped or peeling paint inside or outside (within 5 feet of the ground).
DWELLING UNIT MUST INCLUDE:
Living room, kitchen, bathroom, and one (1) living /sleeping room for every two (2)
household members.
ALL ROOMS MUST HAVE:
Ceiling and Walls must be in good condition. There must not be any large cracks or any
peeling and chipped paint or loose plaster.
Floors must be in good condition. The floor covering must not be curling or have loose
• edges or holes.
Windows must be in good condition and must open and close. The sills and frames must
not be rotting. There can be no cracked, broken, or missing window panes. Windows
that are within 6 feet of the ground must have adequate locks that are permanently
attached to the window.
All rooms must have two (2) sources of power, except bathroom which only requires a
permanently installed light fixture and one (1) outlet. All outlets and switches must have
covers with no exposed or frayed wiring. There must be no open, exposed electrical
boxes or wires! . .
KITCHEN:
Stove: All four burners of the stove must work (gas or electric stove). If the stove is
equipped with a pilot light system, burners must light with pilot. Check to see if the oven
works.
Refrigerator: The door gasket must be attached to the door securely, forming a proper
seal.
Sink: The sink must have hot and cold running water, a drain with trap, properly hooked
to a waste line, and cannot leak.
• There must be adequate food preparation and storage areas, with a. de q uate means to
dispose of food wastes.
BATHROOM:
There must be a private flush toilet that is fastened tight to the floor. There must be a
sink with hot and cold running water with no leaks. There must be a tub or shower.
Also, there must be a fan or an openable window. There must be no rotten or weak
areas on the floor or any water damage to the ceiling.
BEDROOM:
There must be either two (2) outlets, or one (1) light and one (1) outlet. The window(s)
must be open and be large enough to use for an emergency exit.
HEATING:
The dwelling unit must have a heating system that will heat the housing unit to a
comfortable temperature.
STEPS AND PORCHES:
Any porches, balconies, or decks which are more than 30 inches above ground must
have a rail 36" high. All stairs (inside and outside) with four (4) or more steps must have
a handrail. All steps must be sturdy.
SITE:
There must be no hazards in the area such as broken down buildings or large amounts
of trash or junk.
INFESTATION:
There must be no roaches or mice in the unit.
SMOKE DETECTORS:
Check the smoke detector(s) -- They must work and be located outside each sleeping
area.
DON'T FORGET, each unit must have adequate garbage storage facilities!
HQSSEC8.DOC 01/28/97 Richfield HRA
0
•
PAYMENT STANDARD AND SHOPPING INCENTIVE
PAYMENT STANDARD
The Housina Voucher Program uses a "Payment Standard" which reflects the cost of
housing and utilities for this area. The Payment Standard is used to determine the
maximum subsidy amount that you can receive. Generally the subsidy, the amount
paid to the owner by the HRA is the Payment Standard minus 30% of your adjusted
monthly income.
The following Payment Standards are currently in effect:
Unit Size
1 bedroom
2 bedroom
3 bedroom
4 bedroom
Payment Standard
$538
$643
$850
$882
Note: The Payment Standards may be adjusted and increased as necessary to assure
the continued affordability of housing by participating families. These
adjustments must be made within the Housing Voucher Program limitations.
If there is an increase adjustment, the maximum subsidy you receive will also be
increased at the time we renew your lease. If there is not an adjustment and the
contract rent is increased, you will be paying more towards your rent.
SHOPPING INCENTIVE
Once you know how much subsidy the Richfield HRA will allow, you then would decide
how much to pay for rent. Because the Housing Voucher Subsidy is based on thes
Payment Standard, the amount of rent you will pay would depend on the rent for the
unit you select. If you rent an inexpensive apartment, your portion of the rent will be
low. You may wish to spend more of your own money on a rental unit, this too is
permissible. For example:
Unit Rent (including utility allowance)
$500
Maximum Subsidy you receive
$301
You pay (Unit rent minus maximum subsidy)
$199
However, if the unit selected is less.expensive:
Unit rent (including utilities)
$375
Maximum Subsidy you could receive
$301.
You pay: (Unit rent minus maximum subsidy)
$ 74
SUGGESTIONS
It is important for you to decide how much you can afford to pay for rent. You will be
responsible for your share of the rent and your own utilities. Your utilities will be
determined by the type of unit you select. To figure out an estimated monthly cost, you
need to know:
• the rent per month
• utilities that you must pay; and
• maximum subsidy amount the HRA will pay to the owner.
To figure approximate monthly rental costs:
Add: $ + $ _ $
Monthly Rent Utility Allowance Total Costs
for utilities you
will pay. (Use
Utility Chart)
then Subtract: $ _ $ _ $
Total Costs Estimated Housing Your Monthly Costs
Voucher Subsidy
(HAP)
HUD suggests that renters pay 30% of their income towards housing expenses (rent
plus utilities). Thirty percent of your household income is: $
When you have information on the rent per month an the utilities, your HRA
representative will be able to tell you the exact amount of your portion of the rent and
the exact amount of the Housing Voucher Subsidy that the HRA will pay your landlord.
It is possible to use this Housing Voucher to move to other locations. Ask your
representative for further information regarding this.
01/28/97 Richfield HRA
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 20
Agenda April 21, 1997
Issue Statement:
A status report on the Richfield Rediscovered Program.
Background:
The Richfield Rediscovered Program has been a catalyst for numerous housing
improvements throughout the City since 1990:
• 92 homes, approximately 70 of them facilitated by the HRA, have been built to
an average end value of $140,000. Previous substandard homes have been
removed.
• 800 homes have had more than $10,000 in improvements made. Twenty of
these were major remodeling efforts which were financed with the HRA's
Transformation Program to an average property end value of $150,000.
• The average single family sale price of $82,500 has increased to $100,400.
• Approximately 300 homeowners requested Remodeling Advisor services;
improving confidence in starting and finishing remodeling projects.
• The HRA has sponsored.five Parade of Homes entries.
• The list of potential builder /buyer teams for new construction exceeds 300.
Opportunities for change and growth will occur in 1997. The procedural guidelines
have been updated in three areas (additions have been highlighted, deletions have
been lined out):
• Twinhome, townhome, and cluster home site opportunities near main corridors
may become available. Page 10 includes a new section of the guideline allowing
development within the program.
• The requirement of an existing owner to sell to the HRA and repurchase have
been clarified, on Page 4, paragraph 3 of the guideline. Although this occurs
infrequently, the outcome of a new higher value larger home always occurs.
Design guidelines have been rewritten to clarify aspects of good design that are
being sought. The rewritten Sections are on Pages 10 and 11 and refer
specifically to minimizing garage door dominance in design.
•
Due to actions taken by the HRA in 1996, the long term funding for Richfield
Rediscovered must be reconsidered. In anticipation of change by the legislature to tax
increment laws, the HRA shifted Development Account funding to revenue bond
funding. Hence, the HRA issued a $5 million revenue bond at the end of 1996 for
redevelopment opportunities. Richfield Rediscovered was funded by the Development
Account.
Richfield Rediscovered was approved in 1990 and has had two primary funding
sources. From 1991 to 1993, $1.5 million in sewer and water long range capital
improvement fund reserves were made available by the City. The HRA borrowed those
funds with a short term and long term repayment strategy. Proceeds of sale of 25
vacant lots returned some expended funds within one year of expenditure. Tax
increment returns the balance over a 25 year period.
Since 1993, the HRA has internally funded Richfield Rediscovered, ($650,000)
Transformation, ($150,000) and Remodeling Advisor services ($30,000) from the
Development Account. The $830,000 to $900,000 in resources has facilitated 45 new
home opportunities, 20 transformations and more than 300 home visits by advisors.
The programs are very successful and have leveraged considerable private loan activity
and growth in new construction and remodeling. It is appropriate to continue the
program.
The program is funded through the end of 1997. In the next few months, staff will be
evaluating several choices for the use of the 1996 taxable revenue bond proceeds.
One of the options will be to support Richfield Rediscovered. There will be several
competing demands for the limited resources. Examples include: general gap financing
to a redevelopment district, scattered site acquisition financing to redevelop main
corridors outside of established redevelopment districts, and planning monies for new
redevelopment areas.
Working with Ehlers /Publicorp, the HRA's financial consultants, a long term financing
strategy has been identified. An initial contribution of $2 million and an additional $1
million in the tenth year will provide ten new homes annually and use proceeds of sale
and tax increment to repay the debt and sustain a program for 25 years. There are four
sources for the initial contribution: sell bonds, secure a bank note or line of credit,
borrow internally, or utilize a portion of the 1996 revenue bond proceeds. The preferred
source has not yet been identified.
Recommended Motion:
1. Discuss the Richfield Rediscovered Program report.
2. Adopt a motion approving the changes to the guidelines as outlined herein and
directing staff to continue to explore funding options for the program and identify
a preferred course during the annual budget process.
i
Basis of Recommendation:
1. The HRA receives routine reports on programs.
2. Modified guidelines broaden housing opportunities and assist staff in improving
program administration.
3. The HRA may prefer one of several long term financing strategies and discussion
assists staff with refining preferred options.
4. A future funding source needs to be identified for the 1998 HRA budget.
5. The Richfield Rediscovered program is a successful cornerstone to the
revitalization of Richfield's neighborhoods; substandard and economically
obsolete housing remain to be redeveloped, and program interest remains very
strong.
Alternative Recommendation:
1. Defer the report to another time.
2. Modify the guidelines further.
3. Discontinue the analysis of funding options.
Discussion /Decision Mode:
The changes to the procedural guidelines would be implemented immediately
Respectf y submitted,
Jame Prosser
Executive Director
JDP:ds
i
RICHFIELD REDISCOVERED
PROCEDURAL GUIDELINES
u
is Revised April 1997
•
Table of Contents
Page Number
Statement of Purpose ................................................ ............................... 1
ProgramObjectives .................................................... ............................... 1
Definitions................................................................... ............................... 1
DataPrivacy ............................................................... ............................... 1
Seller Solicitation Procedures ..................................... ............................... 2
Property Selection Criteria ........................................... ............................... 2
Property Evaluation Procedures .................................. ............................... 3
Acquisition and Disposition Procedures ..................... ............................... 6
0 Developer and End Buyer Selection Criteria .............. ............................... 7
is
Housing Design and Site Development Criteria ......... ............................... 9
Developer and End Buyer Solicitation Criteria ............ ............................... 11
Developer Selection Procedures ................................ ............................... 12
Procedures for Sale to Developers .............................. ............................... 13
Property Closing Procedures ....................................... ............................... 14
Plan Review Process ................................................... ............................... 14
Procedures for Demolition of Structures ....................... ............................... 15
General Program Marketing ....................................... ............................... 16
InternalFund Management .......................................... ............................... 17
Demolition Costs and Estimates .................................. ............................... 18
i
0
Richfield Rediscovered
Procedural Guidelines
Statement of Purpose
This document has been developed as a guidance tool for program administration.
This document should not be interpreted as constituting any contractual agreement or
liability by the City or HRA.
Program Objectives
Replace small, lower value housing on scattered sites throughout the city with new,
hig' '
• Eliminate the blighting influence of substandard housing, thus improving residential
neighborhoods.
• Alleviate the shortage of housing choices for families.
. These objectives will be achieved through the acquisition of property and the
development of new homes.
Definitions
HRA - Housing and Redevelopment Authority in and for the City of Richfield.
Voluntary Acquisition - The purchase (acquisition) of real property which results from a
voluntary proposal to sell from an owner in response to an invitation or solicitation for
offers.
Developer- Developer or Builder who has entered into a Development Agreement with
the HRA to purchase a specific lot or lots and develop them with new homes.
End Buyer - The buyer of a new house sold by a Developer.
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Data PrivM
All information secured through the program is subject to the Data Privacy Act.
•
0 Seller Solicitation Procedures
0
1. HRA staff will solicit for Sellers by direct mail, advertisement, or other method.
The number of properties purchased will be determined by the availability of
resources and properties.
2. Sale to the HRA must be on a voluntary basis. Interested Sellers are required to
respond to the HRA solicitation in writing, with an offer indicating:
a) An interest in selling their property to the HRA.
b) A willingness to waive relocation benefits.
c) Statement of tenant interest in the property at the time of offer.
3. Owners who have expressed an interest in selling will be contacted to inform
them of the estimated project time line and solicit the required written response.
Property Selection Criteria
HRA staff will prepare property fact sheets for properties which owners have expressed
an interest in selling, and make a drive -by inspection. Properties will be evaluated
based on the following criteria. To be eligible for acquisition, properties must meet at
least one of the four conditions under criteria 1 (a, b, c or d), and must meet all criteria 2
through 6.
The property is:
a) Substandard as to condition, size or usage.
b) Obsolete and faulty design for block and area in which it is located.
c) Deteriorated such that it has caused blight to other adjoining properties.
d) Detrimental to the safety or health of abutting properties in the block.
2. The estimated market value of the property is within appropriate limits
established by the HRA for tax increment feasibility. An effort will be made to
provide a geographic mix of properties.
3. The site can be developed with a home within city code requirements, including
zoning and conformance with the Comprehensive Plan.
2
4. The property must be owner - occupied or vacant before the owner should
consider offering it to the HRA. Tenant occupied properties will be considered
on a case by case basis.
5. The relationship of the property to other projects does not cause a negative
impact on development. Other projects to be considered are:
a) Established commercial redevelopment areas.
b) Right of way improvement projects such as 1-494,1-35W, Crosstown
Highway 62, TH77, 66th Street, etc.
c) Airport noise exposure zones:
to 65 to 69 DNL
to 70 to 74 DNL
d) Storm water flood prevention improvements projects.
e) Other.
6. Prior to acquisition by the HRA, properties over 50 years old must be evaluated
for historical significance. This will be accomplished by forwarding general
property information and a property photo to the Minnesota Historical Society for
review. This should be confirmed prior to signing a purchase agreement. The
HRA will not purchase property which qualifies for the National Registry of
Historical Structures.
Proaerty Evaluation Procedures
Based on the above information, HRA staff will identify the best candidates for
acquisition. The following will be considered in that evaluation:
a) Properties must be immediately available to meet the HRA development
time frame.
b) Properties with one or more of the following characteristics should be
considered first:
i) lowest values
ii) poorest visible conditions
iii) historically troublesome properties
c) Properties purchased should be equally distributed by location and value
through the districts when possible, and provide a viable financial mix of
properties to support program financial requirements.
3
• d) Two - family housing developments will be located on collector and arterial
streets -- main transportation corridors.
Given the above considerations, each site will be evaluated on a case by case
basis.
2. If a property meets the blight test, acquisition procedures can continue. If the
blight test cannot be met, the property cannot be considered for acquisition.
4. Once an offering letter is received, HRA staff will contact the owners of the
properties and arrange an inspection of the interior for blight qualification. The
following information will also be obtained during the inspection:
a) Demolition information for estimating demolition credit to the Developer.
0 (See Procedures for Demolition).
b) A determination as to the existence of any hazardous materials on the
property. This includes:
i) a visual inspection
ii) a statement from the Seller regarding any knowledge of the
property's use for production, storage, deposit, or disposal of any
toxic or hazardous wastes or substances or asbestos products
whatsoever, during the time the Seller owned the property and prior
to the date the Seller purchased property.
Properties with environmental problems or hazards may be considered if
the purchase price is reduced sufficiently to cover increased site
clearance and preparation costs.
5. If a variance is required to redevelop the property, the HRA may, at its sole
discretion, choose not to acquire the property. This determination will be made
based on the project time lines, available resources, and availability of more
desirable properties which do not require a variance.
. 6. If the HRA chooses to continue with the acquisition, a fee appraisal will be
ordered to determine the purchase price of the property (to present to the Seller),
4
the reuse value as a vacant lot, and a finished price range for new construction
(to present to the Developer).
The independent fee appraiser will be carefully instructed to. document in specific
terms the conditions of the property and details regarding structural condition
and floor plan. The acceptance of these conditions in the market place be
discussed in the report. The appraiser's value judgment should reflect these
conditions.
7. If the Seller agrees to the purchase price and signs a Purchase Agreement, the
property will be included in the HRA marketing program.
The RuFGhase AgFeement will be GOntingent en*
hazaFdous waste on the pFep - .,
,
in -t ern muct h eement with an end b w nen� I
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8. Sellers will be asked to provide the Abstract or RPA (as applicable) to the HRA
to facilitate the rendering of a title opinion. The cost of updating the Abstract or
RPA will be the Sellers if a sale occurs. If no sale occurs, the HRA will bear the
entire cost of updating the Abstract or RPA. The HRA will provide a written
receipt when receiving and returning an Abstract or RPA.
9. Legal Counsel will be responsible for having the Abstract or RPA updated and
will contact staff as quickly as possible with an oral opinion of title. A written
opinion will follow shortly thereafter.
10. If the title opinion indicates the property has marketable title, purchase
procedures will continue. If the title opinion does not indicate a marketable title,
the HRA, at its sole discretion, may choose not to acquire the property. The
HRA may determine remedies and evaluate their resolution, including the
additional time and expense to provide marketable title. The HRA may proceed
to correct title deficiencies once a Purchase Agreement is executed by the
Seller.
11. Simultaneously with the title opinion, an environmental evaluation may be
obtained from an independent environmental engineering firm or other firm
performing such service. This occurs in situations where the site location or
condition suggests that an environmental evaluation is appropriate. If
5
0
environmental hazards are found on the site, the HRA may choose not to acquire
the property.
Acquisition and Disposition Procedures (Seller to HRA. HRA to Developer)
When a purchase price has been determined, the Seller will be informed of:
a) The purchase price.
b) How the purchase price was determined.
c) That if negotiations fail, and the offer is not accepted, the HRA will not
acquire the property.
2. Once a negotiated price has been reached, a contract for purchase, with the
attached form of Purchase Agreement and "Waiver of Relocation Benefits" form
must be executed by the Seller for the acquisition process to continue. The
relocation benefits which the Seller agreed to waive must be clearly explained at
this time if not explained previously.
The GGntFart fGF pumhase with the selleF wall have a teFm of 90 days.
develepeF feF the pr-epeFty is not feund within that time, the selleF has the Opt;
3. The Richfield Planning Commission must determine whether the acquisition and
disposition of the property is in conformance with the Richfield Comprehensive
Plan. Several properties may be simultaneously presented to the Planning
Commission for review. (This is an administrative finding that does not require
public hearing).
4. At the appropriate times, the HRA will be requested to authorize:
a) Purchase Agreements
b) Development Agreements
c) Public Hearing and Disposition to Developer
(Agreements for several properties may be presented to the HRA at one time).
5. Following HRA authorization of these agreements:
a) Seller will be requested to assemble or supply all required documentation
prior to closing. A closing will be scheduled on the sale from the Seller to
the HRA.
0
. b) Developer will be requested to provide evidence of insurance and
financial security prior to closing. A closing will be scheduled between the
HRA and the Developer.
•
6. The Developer shall provide, at closing, financial security in the form of a letter of
credit in the amount of the HRA subsidy or the vacant lot cost, whichever is
greater, final evidence of insurance, a purchase agreement with an End Buyer,
and a certified check equal to the estimated demolition costs. (See Procedures
for Developer Selection and Sale to Developers.)
7. Special considerations during the acquisition process:
a) Non - homestead vacant property will be considered for acquisition.
b) Tenant occupied property will be considered on a case by case basis.
c) Property expenses related to maintenance, taxes, and insurance should
be minimized since the HRA does not intend to retain title to the property.
d) Review appraisal services may be part of the negotiating process to
determine the purchase price if the fee appraisal report values the
property below the current assessor's market value.
e) Negotiated prices considerably below the assessor's market value may be
accepted without appraisal, on a case by case basis, if the Seller concurs.
f) The number of acquisitions by the HRA is determined by available
resources (funding and staff).
Developer and End Buyer Selection Criteria
Private Developers will be approved by the HRA to construct new single family homes
on identified lots. Developers must meet the following requirements:
Have a valid Purchase Agreement with an End Buyer for the lot they would like
to purchase. The Developer and End Buyer must sign a statement indicating
that the Purchase Agreement is valid and true. A speculative project by a
Developer may be considered if all other program requirements can be met.
However, program experiences suggest that higher value homes are built when
a buyer is involved in plan development.
7
2. Provide a participation fee of $500, paid at the time of application, by a certified
or cashiers check made out to the Richfield HRA. This fee is non - refundable
and is not part of the lot price.
3. Provide preliminary plans. Preliminary plans should be submitted within 30 days
of application or at a reasonable amount of time shortly thereafter. This time
period should not exceed 60 days.
4. Demonstrate financial capability by:
a) A statement from a financial institution indicating sufficient construction
capital to complete the project; and
b) A Letter of Credit in the correct amount, as required by these procedures;
and
c) A summary of the financial condition of the company, based on the most
recently prepared and audited financial statement.
5. Provide favorable references from:
a) Five satisfied customers.
b) Three major suppliers, one being the construction lumber supplier.
c) Building Inspectors from two cities in which the Developer has constructed
new housing within the past three years.
6. Demonstrate proof of Developer's risk, comprehensive general liability, and
worker's compensation insurance coverage (insurance as specified in
Development Agreement).
7. Have a Builder warranty program, possess H.O.W. insurance or have an
equivalent written program with End Buyer to perform warranted repairs required
by Minnesota state statute.
8. Agree to the terms of the Development Agreement. A draft copy of the
agreement will be provided upon request. The Developer should enter the
Development Agreement by the time of the land sale from the HRA to the
Developer. The time period between submitting the Participation Agreement and
fee and closing on the land should not exceed 60 days. The Development
Agreement includes a provision which returns the ownership of the site to the
HRA if the Developer does not perform as specified.
9. Agree to complete construction within the time frame specified in the
40 Development Agreement. Every effort will be made to complete construction
0
and complete End Buyer closing and occupancy within 150 days of closing with
the HRA.
Housing Design and Site Development Criteria
Siding materials, exterior facade presentation, roof, window, siding and building line
variability, finished landscape, interior space function and use are all important
considerations.
The development of all sites shall meet the development objectives listed below. The
guidelines were created to insure that the homes built on the identified lots blend in with
the surrounding neighborhood and respond to specific concerns of the HRA. The
Housing Design and Site Development Criteria have been reviewed and approved by
the HRA.
1. Site Standards:
a) The entire grounds shall be finish landscaped to be aesthetically pleasing
in all seasons. Land forms and plant materials shall be used to define the
site and blend neatly with adjoining property. Specific lot line blending
requirements are added, as appropriate, for specific sites.
b) Utility meters shall be screened from street view; locations must be
specified on plans.
c) Site drainage shall be accommodated on the site so that water is directed
away from the new home and the neighboring properties. Neighboring
properties should not be disturbed to create drainage swales. Specific
storm water management requirements are added as appropriate,
including the addition of gutters for specific sites.
d) Existing trees shall be preserved when possible. Care should be taken to
preserve existing root systems. A tree wrap, with board reinforcement
shall be used on trees directly adjacent to active grading and construction
area.
e) The construction site, neighboring property(s) and adjacent public streets .
shall be kept free of construction debris at all times.
f) All air conditioning units must be located in the rear yard of the house or
as approved by the HRA.
g) Egress window area well foundations must meet side setback
requirements (minimum of F from the property line), or be located in the
rear yard of the house.
0
0 h) No construction workers, construction equipment or construction material
shall enter neighboring properties.
•
it
2. Building Standards for Single- Family Market Rate Development:
a) Three and four bedroom homes are required. A minimum of two finished
bedrooms and easily finished space for a third bedroom will be
acceptable.
b) Two full bathrooms are preferred. However, a minimum of one full bath
and a 1/2 bath roughed -in will be acceptable.
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10
0 4. General Standards:
0
a) The value of each new home must meet or exceed the value specified for
each property in the Development Agreement.
b) A two car garage, attached or detached, must be provided on the site for
single family detached units. A minimum of one enclosed parking space
per unit will be required for attached single family units.
c) Exterior materials (siding, soffit, doors and windows), should be low
maintenance. Brick, aluminum and vinyl are preferred. Natural cedar lap
is acceptable if properly stained or painted. Hardboard panels or
hardboard lap siding, are not acceptable.
d) Unit height and mass of the new homes shall be compatible with the scale
of the surrounding neighborhood.
f) A full basement shall be provided in the house unless the selected design
results in a split level or garden level type of basement.
g) All building plans must have been prepared in consultation with an
Architectural Designer with a minimum two year technical degree. An
Architect may also be consulted.
h) All construction must conform to the Sound Attenuation Building
Standards for properties located in 65 -69 and 70 -74 DNL zones. A copy
of the Sound Attenuation Building Standards Specifications will be
provided to Developers building in those zones upon request.
Developer and End Buyer Solicitation Criteria
1. The HRA will advertise in professional publications or newspapers, by direct
mail, or other methods as deemed appropriate, to solicit Developer and End
Buyer interest. The initial solicitation will include general program information.
• Specific properties may be identified.
11
2. A program information package will be available upon request to interested
Developers and End Buyers. The information package will include the
following:
a) Developer requirements and application procedure (See Developer
Selection Criteria.)
b) Program summary information to include:
i) Program Objectives
ii) Housing Design Criteria and Review Process
iii) Procedures for Sale to Developer
iv) Anticipated Construction Time Frame
c) Participation Agreement
d) Specific property identification, as determined by the HRA, and
information on property availability (dependent upon the Seller's Purchase
Agreement with the HRA).
e) Specifically identified Developers, as determined by the HRA.
• 3. The information package will clearly indicate that:
a) Only drive -by inspections can be made as the properties may be occupied
and not yet owned by the HRA.
•
b) The time frame of property availability may be limited.
c) Purchases must be made through a qualified Developer of the End
Buyer's choice.
Developer Selection Procedures
Upon receipt of applications, HRA staff will evaluate Developers based on
requirements set forth in the - Developer Selection Criteria -.
2. HRA staff may reject or accept proposals at its sole discretion. Developers
selected must adequately meet the Developer Selection Criteria.
3. Lots will be made available on a first come, first served basis. If more than one
Developer /End Buyer expresses interest in a lot or lots on the same day during
office hours, a Developer /End -Buyer team will be selected by lottery. Other
teams will be ranked in the order drawn, as alternates.
12
• Procedures for Sale to DevelQ r
1. The Richfield Rediscovered sites will be sold to Developers at fair market value
as determined by HRA staff. The determination of value process considers
independent appraisal and the estimated finished value. The estimated cost of
demolition will be deducted from the lot price, if the Developer assumes
responsibility for demolition. (See Demolition Procedures).
2. A Development Agreement will be presented to the Developer for consideration.
The Development Agreement is a standard form which includes conditions for
acquisition, demolition and development of property. The HRA will provide
recommended end values for each property.
3. The selected Developers will be required to execute Development Agreements
for each property being developed. A Purchase Agreement can then be signed
by the Seller.
4. The following items specified in the Development Agreement may require
discussion and negotiation with the Developer:
• Construction start and completion dates.
0 0 Guaranteed minimum value of property upon completion.
• Demolition requirements.
Design and Site Development Criteria.
6. Following execution of Purchase Agreements by the Sellers and subsequent
Development Agreements by the Developer, the HRA will be requested to
authorize:
• Purchase Agreements
• Development Agreements
• Public Hearing on disposition of property
0 8. Prior to closing, the Developer will be required to provide evidence of insurance
and financial capability as identified in the Development Agreement.
Property Closing Procedures
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1. The HRA will convey the property to the Developer by Quit Claim Deed.
2. The Developer must provide evidence that all closing agreement requirements to
proceed with construction have been met. This includes but is not limited to
insurance documents and letters of credit. The Letter of Credit will be the
greater amount of the HRA net contribution or the vacant lot cost. The Letter of
Credit must be from a local Minneapolis /St. Paul Metropolitan Area financial
institution.
3. The Developer will pay to the HRA, upon sale of the property to the End Buyer,
the price of the vacant lot minus a demolition credit, as identified in the
Developers Agreement.
4. The HRA will prepare all statements, affidavits, documents, and general release
forms required for closing.
5. The Developer may obtain the HRA's environmental evaluation for a fee of 1/2 of
the cost incurred by the HRA for the report, in those cases where the HRA has
conducted such an evaluation.
Plan Review Process
1. The following must be provided to the Building Official by the Developer:
• Building Plans (2 copies)
• Land Survey (2 copies) with building elevations, site drainage patterns
and easements.
• Energy calculations
• Any engineering plans (curb cuts, etc.) to be routed through the Building
Official to the engineering division.
• Other information as requested by the Building Official.
2. The Building Official will be asked to review plans for structures located in the
65 -69 and 70 -74 DNL for conformance to sound attenuation building standards.
14
3. At the time plans are submitted to the Building Official, the Developer will provide
one set of plans to HRA staff. HRA staff may refer the plans to the County
Assessor to make a preliminary determination of value based on plans and
amenity package.
4. HRA staff will review all plans to ensure conformance with House Design and
Site Development Criteria. Each plan review by HRA staff will be completed in a
timely manner. Review time approximates one week. Each plan submitted will
be processed individually. Upon completion of review by the HRA the plans, and
the plans returned to the Building Official.
5. if any element of the plan is in conflict with the design criteria, HRA staff will
notify the Developer and the Building Official. The Building Official's plan review
is independent of the HRA.
6. The Developer must resubmit the revised plans for final approval unless resolved
to the satisfaction of the Building Official by modification to original office copy of
submitted plans.
Procedures for Demolition of Structures
1. The Developer will be responsible for demolition and site clearance of acquired
properties on a case by case basis.
2. Alternately, the HRA will provide a credit to the Developer for demolition. The
amount of this credit will be estimated on a site by site basis based on the
Demolition Costs and Estimates (see Demolition Costs and Estimates) and /or
bids staff may secure.
3. The Developer will provide, at closing, a certified or cashiers check in the amount
of the demolition credit. If demolition occurs within the time frame specified in
the Development Agreement, the check will be returned to the Developer. If the
demolition is not completed by the specified date, the HRA may, at its sole
discretion, retain the funds represented by the check.
4. Demolition must occur within forty -five days following the HRA sale of the
property to a Developer or at such other time as specified in the Development
Agreement.
5. Soil corrections and compaction, if any, will be the responsibility of the
Developer.
6. The sale of structures to house movers will not be recommended based on the
following:
15
0 a) The properties purchased are small and blighted, generally not desirable
to movers.
is
b) Movers require a minimum of 60 days following award of bid to remove a
structure. House movers' schedules and unanticipated weather
conditions could prolong this time. Delays cannot be accommodated in
the HRH's development schedule.
General Program Marketing
Program marketing by the HRA will include the following:
1. End Buyer Solicitation
a) The HRA will market the program to End Buyers through promotional
articles, direct mail, or other methods as deemed appropriate. End
Buyers may include:
i) First time buyers
ii) Move -up buyers
iii) Empty nesters
b) A marketing consultant may be used.
2. Developer Solicitation
The HRA will market the program to Developers by advertising in
professional publications or newspapers, by direct mail, or other methods
as deemed appropriate.
3. Public Promotion
a) The HRA will periodically provide information about the program through
articles or information pieces in the "Your City- publication to promote
community awareness.
b) When possible, a public open house will be held to provide an opportunity
for residents and other interested parties to collectively view the finished
homes. The Parade of Homes Fall Showcase and Spring Preview may
also accomplish this.
c) Marketing may occur through the schools.
16
0 Internal Fund Management
•
C,
The program is financed with tax increment and other resources available to the HRA.
The following conditions apply:
2. The funds will be made available in a separate account to be drawn on as
needed to cover project expenses.
3. If the HRA borrows funds, they will be repaid over a 25 year period if sufficient
funds are generated through tax increment. Interest may be paid if the funds
generated exceed the principal amount borrowed.
4. Payment to the City from the HRA through tax increment would be made
following receipt of property tax payments from Hennepin County.
17
0 Demolition Costs and Estimates:
Demolition costs may be estimated based on the following: (This assumes a 24'x24',
wood frame house, no backfill and 1995 price data.)
Demolition - 1 story house
with basement
garage
Public Utility disconnection
(sewer /water)
Well capping
Curb /gutter
Soil correction /Compaction
Private Utility
Adjustment will be made for the following:
10 - Excessive concrete
- 1 -1/2 story house
- 2 story house
- Out buildings (6 "x8 ")
$4,000
$1,000
$ 550
$ 500
$ -0- (development expense)
$ -0- (development expense)
$ -0- (utility companies. cut lines
at no expense)
Add $850
Add $500
Add $750
Add $ 50 (each)
Demolition costs are accurate based on averages of previous demolition work.
0 [CDAdmin \Housing \Forms \Proguide]
18
• HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 19
Agenda April 21, 1997
Issue Statement:
Consideration of approval of Third Amendment to the Contract for Private
Redevelopment (TOLD) for the Meridian Crossings project.
Background:
This past week, the developer of Meridian Crossings, TOLD Company, informed staff
that a recent environmental investigation of the Cloverleaf site within the Phase I area
detected the presence of dry cleaning solvents in random sample soil boring testing.
The environmental investigation was required of TOLD by the lender in order to secure
construction financing for the project. Although the full assessment report is not yet
available, it was reported that the dry cleaning solvents most likely originated from the
old dry cleaning establishment formerly located on Phase I of the Shops at Lyndale.
The solvents seeped into the sewer system, contaminated the groundwater and
appeared through random sample testing. Past environmental investigations
conducted on the Cloverleaf site did not detect any of this hazardous material.
It is proposed that a third amendment to the Contract for Private Redevelopment with
TOLD be made. This amendment would allow the closing on the Phase I land sale to
• occur and construction to commence. With the outstanding environmental issue,
however, TOLD will be required to increase its Letter of Credit provided under the Right
of Entry Agreement from $495,293 to $600,000. This increase is based on a pro -rata
allocation of the Phase I land cost and would continue to further protect the HRA.
Attached to this letter for review is a memorandum from the HRA's legal counsel
addressing the proposed amendment to the contract and other relevant issues. The
proposed Third Amendment to the Contract for Private Redevelopment will be
distributed at the meeting on April 21.
Recommended Motion:
Approve the Third Amendment to the Contract for Private Redevelopment (TOLD) and
authorize its execution by the Chair and Executive Director.
Basis of Recommendation:
1. Recent environmental investigation disclosed contamination on the Phase I
Meridian Crossings site area that requires further investigation and potential
remediation.
2. While the contamination is undergoing further review, TOLD would like to close on
the Phase I land sale and commence construction.
• 3. The amount of the Letter of Credit currently in place under the Right of Entry
Agreement will be increased to $600,000 in order to provide additional protection
to the HRA.
4. In order to continue on a timely construction schedule and meet a January 1, 1998
occupancy date, the amendment is critical to allowing TOLD to proceed with
construction while simultaneously responding to additional environmental
assessment issues, previously unforeseen.
Alternative Recommendation:
1. Reject the Third Amendment to the Contract for Private Redevelopment.
2. Modify the Third Amendment to the Contract for Private Redevelopment.
3. Delay consideration of the Third Amendment to the Contract for Private
Redevelopment.
Discussion /Decision Mode:
TOLD will commence construction of Phase I, Meridian Crossings upon closing on the
Phase I land sale while continuing to further address recent environmental
contamination issues.
. Respectfully submitted,
James rosser
Executive Director
JDP:ds
•
MEMORANDUM
TO: Commissioners - Richfield HRA
FROM: John Dean
DATE: April 18, I997
RE: Meridian: Crossings - Third Amendment to Agreement
A very recent supplemental environmental investigation of the Cloverleaf site disclosed
the possible inmigration of cleaning solvents. This new wrinkle will delay the time when all of
the preconditions to the Phase I closing which are required the existing agreement will take place.
In fact, the delay in the Phase I closing could materially and adversely threaten TOLD's ability
to go forward with the development.
Because of this new problem, TODD and the HRA staff have been exploring possible
modifications to the agreement which will allow TOLD to continue to proceed with construction
on the site, but which would also protect the HRA from potential liability, as well as loss of its
investment, in the event the project ultimately does not go forward.
The modifications, in the form of a Third Amendment to the Contract for Private
Redevelopment, are briefly outlined below. The actual Third ,Amendment will not be completed
until Monday, but will be available at the meeting on Monday evening.
The Third Amendment will deal with four classes of issues: i) when Phase I Closing
occurs; ii) Phase I Closing matters which will be unaffected by the amendment; iii) Phase I
Closing matters which will be affected by the amendment; and iv) loose ends.
C12576
R . KENNEDY & GRAVEN, CHARTERED
C14S ?6
V /2'd W3At189 18 AQ3NN3A VT :ET L6. 8T Ndb
1. Phase I Close - when
The Phase I closing can take place as soon as all of the preconditions to closing have
occurred. The preconditions basically involve a number of instruments which must be executed
and delivered. The documents are described in the remaining portions of this summary. It is
entirely possible that the Phase I Closing will take place during the week of April 20.
2. Matters Unaffected - At closing the following instruments will be among the
instruments delivered,
a) the HRA's quit claim deed to the Cloverleaf property (reserving the land
which is occupied by Emerson Avenue);
b) agreement regarding the construction, use and maintenance of the private
roadway between the Phase I and Phase JI property;
c) petition and waiver agreement which provides for the construction of
certain public improvements and the 1000% assessment of the costs against the Phase I
Property;
d) letter of undertaking regarding certain title issues; and
e) waiver and release agreement regarding future design changes along the
frontage mad.
3. Instruments Affected. At closing certain new (or modified) instruments will also
be required under the amendment.
a) Letter of Credit. The existing Letter of Credit which covers activities under
the Right of Entry Agreement, and which would have expired on Closing, will be
extended for at least six months, will be increased in amount from $495,293 to $600,000
(the approximate pro -rata HRA cost in the Cloverleaf purchase) and will secure the
PIRA's risk in the event the Phase I development collapses and we do not get the land back.
C2
RC125 -76 K1MDj & G AMEN, CHARTERED
b/6 . d N3AU85 '8 W3WW3A ST :6T 2-6, ST Sidi
0
b) First mortgage on the Phase I property in an amount yet to be determined
i
Q am guessing probably $1 to 2 million) running in favor of HRA. This mortgage would
be intended to secure the purchase price and the public improvements which will benefit
the development; and would prevent others from asserting a superior right to the property
if TOLD cannot continue.
c) Mortgage's mortgage insurance policy obtained at the expense of TOLD
and insuring the first priority of the HRA mortgage.
d) Agreement from TOLD to the HRA having and releasing the HRA from
any claims based upon site contamination.
e) S 500,000 additional assistance payment will not be made at Closing. It will
be made at a later date when TOLD receives its PCA "No Action" letter, but then only
j
if there is no material adverse change in TOLD's ability to proceed with the project
f) Provision will be made in the deed or otherwise, for retaining an easement
for a drive running from Emerson: to the TOLD private road. This will stay in place until
CSM and TOLD resolve their access issues.
4. Loose Einds. Naegele Billboard. The site is encumbered by the Naegele lease. '•
Because the city is currently examining sign issues, it may be appropriate, with TOLD's approval,
for the HRA to retain control of the lease. The proposed amendment will contain language which
would retain control.
JBD121119 KENNEDY & GRAYEN, CHARTERED
N3f� 85 I kG3WN3A ST :ET L6, ST add
bib'd �
THIRD AMENDMENT TO CONTRACT FOR
is PRIVATE REDEVELOPMENT
(TOLD)
THIS AMENDMENT, made and entered into as of the day of
1996 by and between MERIDIAN CROSSINGS, LLC., a Minnesota limited liability company
( "Redeveloper ") and THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR
THE CITY OF RICHFIELD, MINNESOTA, Minnesota public body corporate and politic
("FIRA")
WITNESSETH:
WHEREAS, the HRA and Redeveloper's predecessor and assignor did on November 6,
1995 execute and deliver that certain document entitled Contract for Private Redevelopment; and
WHEREAS, the Contract for Private Redevelopment as twice previously amended is
herein referred to as the Amended Contract ( "Amended Contract "); and
WHEREAS, The Redeveloper has requested that the Amended Contract be amended in
the manner set forth below; and
• WHEREAS, the HRA has reviewed the proposed amendments, has received the reports
and recommendations of its staff and consultants, and has concluded that the proposed
amendments are necessary and appropriate; and that the Redevelopment envisioned by the
Amended Contract is not likely to occur unless the amendments set forth below are adopted.
NOW, THEREFORE, based upon the mutual covenants and undertakings hereinafter
contained, the Amended Contract is hereby amended in the following respects.
L Article III is amended by adding a new Section 3.10 to read as follows:'
Section 3.10. Alternative Closing Options.
1. Intent. The intent of this Section is to provide an option to the procedures
otherwise contained in this Article III to be available when the development of the
Phase I Property is threatened by potential time delays in obtaining review from
other governmental agencies. It is understood that this amendment is only
supplementary to the Amended Contract; and all matters not specifically addressed
herein shall be subject to all of the applicable terms and provisions of the
Amended Contract.
'.Unless specifically indicated to the contrary, all time limits referenced herein, such as
is "90 days from the date of this Agreement" shall refer to the date of the original Agreement
(November 6, 1995).
JBD121412
RC125 -66
2. Exercise of Options. The Redeveloper may exercise the alternative closing option
at any time prior to the date provided for in Section 3.4. by notifying the HRA in
writing of its election to do so, and by delivering to the HRA the Letter of Credit
described in subsection 3 below.
Letter of Credit. As a condition of exercise of its option, Redeveloper will deliver
to the HRA an Irrevocable Letter of Credit ( "LC "), from an institution and
containing provisions reasonably acceptable to the HRA. The LC will be in the
principal amount of $600,000 and shall be for a term of at least six months.
The HRA may draw upon the LC at any time to cover any loss which it suffers
as a result of any of the following:
(a) loss of its right to reclaim the property;
(b) satisfaction of any liens which are successfully asserted against the Phase
I Property, or the Phase II Property, under the Amended Agreement or as
the result of work done under the Right of Entry Agreement between the
parties dated ' 1997.
(c) the cost of constructing a private driveway located on the Phase I Property
in the event of Redeveloper's failure to do so.
(d) the cost of restoring the Phase I Property in the event of its return to the
HRA through mortgage foreclosure or the granting of a deed in lien.
Not later than 30 days prior to the expiration of the LC, the HRA will notify the
Redeveloper in writing, whether the LC is to be extended due to the fact that one or more
of the events described above may still occur. Redeveloper shall have 10 days from the
receipt of such notification to extend the LC and provide the HRA with an extended LC.
If the LC is not extended within such 10 day period, the HRA may draw the entire LC
and hold the same to cover the happening of the described events.
4. Closing. Closing shall occur as soon as possible following the written notice of
option and delivery of LC; provided, however, Closing shall not occur until all of
the following preconditions have taken place or been waived by the party in whose
favor they run.
a) Redeveloper has reviewed and approved the condition of title to the Phase
I Property; and except as to matters which on the subject of any undertaking on
behalf of the HRA; has agreed to accept the Phase I Property in its condition of
title.
b) The HRA has reviewed and approved the matters described in Section
3.3(g)•
5. Documents to be Delivered at Closing. In addition to the requirements of Section
3.9, the following provisions will apply to the Closing:
JBD121412 - 2
RC125 -66
I
a) The Quit Claim Deed shall be in substantially the form of the Attached
Exhibit A.
b) A Declaration of Covenants, Conditions, Restrictions and Maintenance
Agreement for a Private Road in substantially the form of Exhibit B.
c) A Petition and Waiver agreement in substantially form of the attached
Exhibit C.
d) Waiver and release agreement in substantially the form of Exhibit D.
e) A mortgage in the amount of $1,500,000 covering the Phase I Property
running in favor of the HRA; such mortgage to be in form acceptable to the BRA.
f) A policy of mortgage insurance obtained at Redeveloper's expense insuring
the priority of the mortgage described in subsection 5.e) above.
g) A waiver and release agreement covering the matters described in Section
3.6 and in paragraph (f)1 of the Letter of Understanding between the parties dated
March 19, 1996.
h) The grit chamber maintenance agreement in substantially the form of the
40 attached Exhibit E.
i) An assignment to the BRA of the Commercial Lease with Naegele Outdoor
Advertising Company, Inc., including the right to extend or renew the same; such
assignment to be in a form and containing terms acceptable to the HRA.
is
6. Post Closing Matters. The payment described in Section 7.4 shall not be paid
until i) the Redeveloper has received its no action notice (or similar site release
notice) from the Minnesota Pollution Control Agency; and ii) the items reviewed
and approved described in Section 3.3(g) remain unchanged.
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RC125 -66
IN WITNESS WHEREOF, the parties hereto have set their hands and seals as of the day
and year first above written.
THE HOUSING AND REDEVELOPMENT
AUTHORITY OF THE CITY OF
RICHFIELD, MINNESOTA
By
Its
By
Its
MERIDIAN CROSSINGS LLC, aMinnesota
limited liability company
By
Its
STATE OF MINNESOTA )
) SS
COUNTY OF )
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 )
The foregoing instrument was acknowledged before me this day of
1997, by I its of Meridian Crossings, LLC,
a Minnesota limited liability company.
0
Notary Public
,TBD121412 4
RC125 -66
Form 'No. 30 -M - QUIT CLAIM DEED
Corporation or Partnership
to Corporation or Partnership
Minnesota Uniform Conveyancing Blanks (1978)
No delinquent taxes and transfer entered; Certificate
of Real Estate Value ( ) filed ( ) not required
Certificate of Real Estate Value No.
,19
County Auditor
by
STATE DEED TAX DUE HEREON: $
Date:
, 19
EXHIBIT A
(reserved for recording data)
FOR VALUABLE CONSIDERATION, the Housing and Redevelopment Authority in and for the City of Richfield, a
public body corporate and politic under the laws of Minnesota, Grantor, hereby conveys and quitclaims to Meridian
Crossings LLC, Grantee, a Minnesota limited liability company, real property in Hennepin County, Minnesota, described
as follows:
Lot 3, Block 3, CLOVERLEAF ADDITION, according to the map or plat thereof on file or of record in the office of the
County Recorder in and for Hennepin County, Minnesota.
This conveyance does not include Emerson Avenue as dedicated in the plat of CLOVERLEAF ADDITION, Hennepin
County, Minnesota which abuts said Lot 3
The Grantor reserves in favor of itself, its successors and assigns an easement over a portion of said Lot 3, Block 3,
CLOVERLEAF ADDITION for ingress and egress purposes, as described on the attached Exhibit A.
The seller certifies that the seller does not know of any wells on the described real property.
(if more space is needed, continue on back)
together with all hereditaments and appurtenances belonging thereto.
HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE CITY OF RICHFIELD
Affix Deed Tax Stamp Here
By
Its Chairperson
0-
EXHIBIT A
Description of Easement
4 An easement for driveway purposes over, under and across that part of Lot 3 Block 3, CLOVERLEAF
ADDITION, according to the recorded plat thereof, Hennepin County, Minnesota described as beginning at the
most northerly corner of said Lot 3; thence southeasterly a distance of 48.29 feet along the northeasterly line
of said Lot 3 to the northeast corner of said Lot 3; thence South 0 degrees 07 minutes 35 seconds West assumed
bearing, along the east line of said Lot 3, a distance of 55.25 feet; thence South 39 degrees 33 minutes 34
seconds West a distance of 29.02 feet; thence southwesterly a distance of 59.63 feet on a tangential curve
concave to the northwest having a radius of 495.50 feet and a central angle of 6 degrees 53 minutes 45 seconds-
thence South 40 degrees 36 minutes 00 seconds East a distance of 41.88 feet; thence South 48 degrees 26
minutes 27 seconds East a distance of 42.30 feet to said east line of Lot 3; thence South 0 degrees 07 minutes
35 seconds West, along said east line of Lot 3, a distance of 45.42 feet; thence North 48 degrees 20 minutes W
27 seconds West a distance 74.71 feet; thence North 40 degrees 36 minutes 00 seconds a distance of
103.62 feet to the northwesterly line of said Lot 3; thence northeasterly along said northwesterly line of Lot 3
to the point of beginning.
•
R00MC12 0151
RC125 -66
EXHIBIT B
DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS
AND MAINTENANCE AGREEMENT FOR A PRIVATE ROAD
THIS DECLARATION is made on the date hereinafter set forth by
and among Meridian Crossings LLC, a Minnesota limited liability
company d /b /a TOLD Development Company ( "Meridian "), Housing and
Redevelopment Authority in and for the City of Richfield, a public
body corporate and politic under the laws of Minnesota ("HRA") and
the City of Richfield, a Minnesota municipal corporation ( "City ").
WITNESSETH:
WHEREAS, HRA is the owner of certain land located in
Richfield, legally described as Lot 2, Block 3, CLOVERLEAF
ADDITION, Hennepin County, Minnesota ( "Lot 211); and
WHEREAS, Meridian is the owner of certain land located in
Richfield, legally described as Lot 3, Block 3, CLOVERLEAF
ADDITION, Hennepin County, Minnesota ( "Lot 311); and
WHEREAS, Lots 2 and 3 (collectively, the "Property ") are
subject to a Contract for Private Redevelopment between the HRA and
Meridian; and
WHEREAS, Meridian wishes to develop the Property and provide
access thereto by means of a privately -owned and maintained road
which will not be accepted by the City for maintenance.
NOW THEREFORE, the HRA and Meridian hereby declare that the
Property shall be held, sold and conveyed subject to the following
easements, conditions, agreements and restrictions which are for
the purpose of providing ingress and egress to the Property, and
which shall run with the land described as the Property, and which
shall be binding on all parties having any right, title or interest
in the land so described, or any part thereof, their heirs,
successors and assigns, and which shall inure to the benefit of
each owner thereof and to the City.
ARTICLE I: DEFINITIONS
Section 1.1. City. The City of Richfield, a municipal
corporation under the laws of the State of Minnesota.
Section 1.2. Owner. Meridian Crossings LLC, a Minnesota
limited liability company d /b /a TOLD Development Company; Housing
and Redevelopment Authority in and for the City of Richfield, a
CAH120685
RC125 -66
public body corporate and politic under the laws of Minnesota; and
any successor in ownership to either Lot 2 or Lot 3, Block 3,
CLOVERLEAF ADDITION or both.
Section 1.3. Private Road. The grade, base, surface,
ditches, culverts and other elements and appurtenances which create
a driving surface upon the Road Easement which is suitable for
vehicular traffic.
Section 1.4. Lot. Lot 2 or 3, Block 3, CLOVERLEAF ADDITION.
Section 1.5. Road Easement. The right -of -way over Lot 3,
Block 3, CLOVERLEAF ADDITION for the purpose of ingress and egress
and which is legally described as set forth in Exhibit A, attached
hereto and made a part hereof by reference.
ARTICLE II: PROPERTY RIGHTS
Section 2.1. Owner's Easement Rights. Every owner of either
Lot shall have an easement for ingress and egress in and to the
Road Easement. Said easement shall be appurtenant to and shall
pass with the title to each Lot
Section 2.2 Delegation of Use. An owner may delegate the
said right to use the Road Easement to tenants, guests and
invitees.
ARTICLE III:
COVENANTS FOR CONSTRUCTION, RECONSTRUCTION, MAINTENANCE
AND REPAIR
Section 3.1. Construction and Repair. The Owner hereby
agrees to construct, reconstruct, maintain and repair a Private
Road on the Road Easement. The Owner acknowledges that the City
ofhas no obligation to construct, reconstruct, maintain and repair a
CAH120685
RC125 -66 2
Private Road, and that the City does not intend to acquire or open
said Private Road as a public roadway.
Section 3.2. Payment of Costs. The Owner hereby assumes and
agrees to pay (i) the cost of construction of the Private Road and
(ii) an equal share of the reconstruction, maintenance and repair
of the Private Road (this item (ii) is hereinafter referred to as
"Assessments ") . Such construction, reconstruction, maintenance and
repair shall meet minimum standards typically found in first class
commercial office parks for heavy duty traffic.
Section 3.3. Lien and Obligation for Assessments. The Owner
hereby covenants and agrees to pay Assessments established with
respect to each Lot, together with interest, court costs, and
reasonable attorneys' fees required for collection thereof, which
Assessment shall be a charge on that Lot and shall be a continuing
lien upon that Lot. Each Assessment, as described above, shall
also be the personal obligation of the Owner of the Lot when the
Assessment falls due. Each Owner of Lot 2 and Lot 3 shall pay 50
percent of the costs incurred hereunder. The personal obligation
for delinquent Assessments shall not pass to an Owner's successor
in title unless expressly assumed by such successor. Such
Assessments shall be for the exclusive purpose of the
reconstruction, maintenance and repair of the Private Road and
shall include only the actual costs incurred plus 15 percent for
overhead and profit for the entity managing said work, reasonably
incurred in constructing, reconstructing, maintaining and repairing
the Private Road. The Lot 3 Owner shall be initially responsible
for construction, reconstruction, maintenance and repair of the
CAR120685
RC125 -66 3
Private Road and shall bill the Lot 2 Owner for its proportionate
share.
Section 3.4. Payment Costs. Each Owner's share of such
Assessments shall be due and payable 30 days after notice thereof
from the Lot 3 Owner or person or entity rendering an account for
the costs of such construction, reconstruction, maintenance and
repair. The Assessment shall bear interest at the rate of 8o per
annum from the due date to the date of payment. Any Owner may
bring an action on behalf of himself or herself and all other non-
defaulting Owners to collect a defaulting Owner's Assessment which
has not been paid when due, and shall be entitled to recover
reasonable attorneys' fees together with all necessary costs and
disbursements incurred in connection therewith.
Section 3.5. Approval of Plans. The plans, specifications
and the awarding of contracts for the construction, reconstruction,
maintenance and repair of the Private Road shall be approved in
writing by the City. No Owner may be exempt from the Assessment by
waiving the use or enjoyment of the Private Road or by abandonment
of the Lots.
Section 3.6. HRA to Have No Obligations. Notwithstanding any
other provision of this Article III, the HRA shall have no duty to
perform any of the obligations set forth in this Article III, and
no lien shall be imposed upon Lot 2 under this Article III until
such time as the HRA no longer is the fee owner of Lot 2. At all
times that the HRA is the fee owner of Lot 2, the Owner of Lot 3
shall be solely responsible for performing the obligations under
this Article III.
CAH120685
RC125 -66 4
ARTICLE IV: RIGHTS OF THE CITY
Section 4.1. Right of Repair. The covenants, conditions and
restrictions of this Declaration shall inure to the benefit of the
City. In the event, after reasonable notice from the City and an
opportunity to cure, that the Owners fail to reconstruct, maintain
and repair the Private Road in accordance with Article III of this
Declaration and the City's applicable ordinances or building codes,
it is agreed by the Owner that the City may, at its discretion and
option, undertake the reconstruction, maintenance and repair of the
Private Road but that any such action taken by the City will not
result in the establishment of a public roadway. The Owners
further covenant and agree that the reasonable, actual costs
incurred by the City under this Section 4.1, including city staff
costs, shall be divided among and paid by the Owners in accordance
with the formula set out in Section 3.2., 3.3. and 3.4. of the
preceding Article III. In the event that any Owner shall default
in such payment, the City may, at its option, assess the costs
against the appropriate Lot, and certify said assessment to the
county auditor and collect the same in a single payment as in the
case of special assessments for public improvements.
Section 4.2. Conveyance of Easements. The Owner hereby
conveys a nonexclusive easement for ingress, egress,
reconstruction, maintenance and repair over the Road Easement to
the City for response to police calls, fire calls, rescue and other
emergency calls, and for the purposes set forth in Section 4.1
hereof.
ARTICLE V: MISCELLANEOUS PROVISIONS
CAH120685 5
RC125 -66
Section 5.1. Restrictions on Use. No Owner shall obstruct
or interfere with the right or privilege of any other Owner to use
the Private Road or Road Easement nor shall any Owner alter,
construct, remove or obstruct the Private Road or Road Easement or
use the Private Road or Road Easement for other than passenger
vehicles and light delivery trucks serving the Property. No heavy
construction equipment or similar vehicles shall utilize the
Private Road without the express consent of each Owner. Upon any
violation of this Section 5.1, any Owner shall have the right to
restore the Private Road or Road Easement to its prior condition
and cause the cost thereof to be assessed against the Owner
violating this Section 5.1. The costs, including reasonable
attorneys' fees, incurred by any Owner in protecting his or her
vested rights by an action law or in equity against another Owner
shall be recoverable in said action.
Section 5.2. Subordination of the Lien to Mortgages. The
lien of any assessment provided for herein except for the
assessments provided for in Sections 4.1. and 4.2. shall be
subordinate to the lien of any first mortgage against any Lot.
Section 5.3. Duration. The covenants, conditions and
restrictions of this Declaration shall run with the land and shall
be binding on all persons claiming ownership thereunder. In the
event Lot 2 and Lot 3 are owned by the same party, this Declaration
shall remain in full force and effect and no merger of interests
shall occur. The covenants, conditions and restrictions of this
Declaration shall not be deemed to be merely nominal and of no
0 actual and substantial benefit to the party or parties to whom or
CAH120685 6
RC125 -66
0
0
in whose favor they run unless the City shall so consent in
writing.
IN WITNESS WHEREOF, the parties hereto have executed this
Declaration on the day and year indicated below.
MERIDIAN CROSSINGS LLC
By:
Its
By:
Its
CAH120685
RC125 -66
7
0
Ll
•
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
OF RICHFIELD
By:
Its Chairperson
By:
Its Executive Director
CITY OF RICHFIELD, MINNESOTA
By:
Its Mayor
By:
Its City Manager
ACKNOWLEDGEMENT
STATE OF MINNESOTA
SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this
day of 1997, by and
respectively, the
and of Meridian Crossings LLC, a Minnesota
limited liability company.
CAH120685 8
RC125 -66
Notary Public
STATE OF MINNESOTA )
SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this
day of , 1996, by Thomas Harms and James D.
Prosser, respectively, the chairperson and executive director of
the Housing and Redevelopment Authority in and for the City of
Richfield, a public body corporate and politic under the laws of
Minnesota, on behalf of the Authority.
Notary Public
STATE OF MINNESOTA )
SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this
day of , 1996, by Martin J. Kirsch and James D.
Prosser, respectively, the mayor and city manager of the City of
Richfield, a Minnesota municipal corporation, on behalf of the
corporation.
Notary Public
This Instrument Was Drafted By:
KENNEDY & GRAVEN, CHARTERED (JBD)
470 Pillsbury Center
Minneapolis, Minnesota 55402
612- 337 -9300
CAH120685 9
RC125 -66
0 EXHIBIT A
An easement for driveway purposes over, under, and across that part
of Lot 3, Block 3, CLOVERLEAF ADDITION, according to the recorded
plat thereof, Hennepin County, Minnesota described as beginning at
the most northerly corner of said Lot 3; thence southeasterly a
distance of 48.29 feet along the northeasterly line of said Lot 3
to the northeast corner of said Lot 3; thence South 0 degrees 07
minutes 35 seconds West assumed bearing, along the east line of
said Lot 3, a distance of 55.25 feet; thence South 39 degrees 33
minutes 34 seconds West a distance of 29.02 feet; thence
southwesterly a distance of 59.63 feet on a tangential curve
concave to the northwest having a radius of 495.50 feet and a
central angle of 6 degrees 53 minutes 45 seconds; thence South 40
degrees 36 minutes 00 seconds East a distance of 41.88 feet; thence
South 48 degrees 20 minutes 27 seconds East a distance of 42.30
feet to said east line of Lot 3; thence South 0 degrees 07 minutes
35 seconds West, along said east line of Lot 3, a distance of 45.42
feet; thence North 48 degrees 20 minutes 27 seconds West a distance
of 74.71 feet; thence North 40 degrees 36 minutes 00 seconds West
a distance of 103.62 feet to the northwesterly line of said Lot 3;
thence northeasterly along said northwesterly line of Lot 3 to the
point of beginning.
CAH120685 1 0
RC125 -66
EXHIBIT C
PETITION AND WAIVER AGREEMENT
THIS AGREEMENT made this day of 1996 by and
between MERIDIAN CROSSINGS LLC, a Minnesota limited liability
company d /b /a TOLD DEVELOPMENT COMPANY (hereinafter "TOLD "), THE
HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
RICHFIELD, a Minnesota public body corporate and politic
(hereinafter "HRA") (the HRA and TOLD are herein referred to
collectively as "Petitioners ") and THE CITY OF RICHFIELD, a
Minnesota municipal corporation (hereinafter "City ").
WITNESSETH:
WHEREAS, the HRA is the owner of that certain tract and parcel
of land which is legally described as Lots 2 and 3, Cloverleaf
Addition (the "Property ") and
WHEREAS, the HRA and TOLD have entered into a document
entitled Contract for Private Redevelopment ( "Contract ") calling
for the sale by the HRA to TOLD of the Property and for the
redevelopment of the Property in phases; all as is fully set forth
in the Contract; and
WHEREAS, it is the desire of the Petitioners that the City
undertake certain assessable improvements ( "Improvements ") which
are required in furtherance of the redevelopment project envisioned
in the Contract through a city project ( "Improvement Project "); and
WHEREAS, the Petitioners wish the City to undertake the
Improvement Project without notice of hearing or hearing on the
Improvement Project, and without notice of hearing or hearing on
the special assessments levied to finance the Improvement Project
and to levy 100 percent of the cost of the Improvement Project
against the Property as hereinafter provided; and
WHEREAS, the City is willing to construct the Improvement
Project in accordance with the request by the Petitioners and
without such notices or hearings, provided the assurances and
covenants hereinafter stated are made by the Petitioners to ensure
that the City will have valid and collectable special assessments
as they relate to the Property to finance the cost of the
Improvement Project; and
WHEREAS, were it not for the assurances and covenants
hereinafter contained, the City would not construct the Improvement
Project without such notices and hearings and is doing so solely at
the behest, and for the benefit of the Petitioners.
JHD119851
RC125 -66
NOW, THEREFORE, on the basis of the mutual covenants and
agreements hereinafter provided, it is hereby agreed by and between
the parties hereto as follows:
1. The Petitioners hereby petition for the undertaking of
the Improvement Project consisting generally of the elements
contained in the attached Exhibit A ( "Improvement Plan").
2. Petitioners represent and warrant that the HRA is
currently the owner of 100 percent of the Property; and that on
sale to TOLD, TOLD will become the owner of 100 percent of the
Property, and that Petitioners have the full legal power and
authority to encumber the Property as herein provided, and that as
of the date hereof, the HRA has fee simple absolute title in the
Property which is not subject to any liens, interests or
encumbrances, except as listed on the attached Exhibit B
( "Encumbrances ").
3. The Petitioners request that 100 percent of the cost of
the Improvement Project be assessed against the Property as
follows:
a) 100 of the cost is to be assessed against Lot 3 and
collected together with taxes from Lot 3 until the year in
which a building permit is issued to TOLD for construction of
the Lot 2 minimum improvements as described in the Contract.
The assessment (including the principal balance and accrued
interest) will then be reallocated between Lot 3 and Lot 2 as
requested by TOLD and consistent with standard city assessment
practices.
4. TOLD for itself and the HRA for itself waives notice of
hearing and hearing pursuant to Minn. Stat. § 429.031, on the
Improvement Project, and the notice of hearing and hearing on the
special assessments levied to finance the Improvement Project
pursuant to Minn. Stat. § 429.061 and specifically requests that
the Improvement Project be undertaken and special assessments be
levied against the Property therefor without hearings.
5. TOLD for itself and the HRA for itself waives the right
to appeal the levy of special assessments in accordance with this
Agreement pursuant to Minn. Stat. § 429.081, or reapportionment
thereof upon land division pursuant to Minn. Stat. § 429.071, Subd.
3, or otherwise; and further specifically agrees with respect to
such special assessments against the Subject Property or
reapportionment that:
a) Any requirements of Minn. Stat. Chapter 429 with
which the City does not comply are hereby waived by TOLD and
the HRA;
b) The increase in fair market value of Lot 3 and of
the Property as a whole resulting from the Improvements will
be in an amount at least equal to the total cost of the
JBD119851 2
RC125 -66
Improvement Project, and that such increase in fair market
value is a special benefit to the Property;
c) Assessment of 100 percent of the cost of the
Improvement Project against the Property as outlined above is
reasonable, fair and equitable and there are not other
properties against which such costs should be assessed; and
d) TOLD for itself and the HRA for itself specifically
waives notice and the right to appeal reapportionment of such
special assessments upon land division pursuant to Minn. Stat.
§429.071, Subd. 3.
6. The Petitioners understand that it is the intention of
the City to provide for the payment of such special assessments in
ten annual installments commencing in 1997; and bearing interest at
the rate of 8.5 %.
7. The covenants, waivers and agreements contained in this
Agreement shall bind the successors and assigns of the Petitioners
and shall run with the Property and bind all successors in interest
thereof. It is the intent of the parties hereto that this
Agreement be in a form which is recordable among the land records
of Hennepin County, Minnesota and they agree to make any changes to
this Agreement which may be necessary to effect the recording and
filing of this Agreement against the title of the Property.
8. This Agreement shall terminate upon the final payment of
all special assessments levied against the Subject Property
regarding the Improvement Property and the City shall execute and
deliver such documents, in recordable form, as are necessary to
extinguish the rights hereunder.
9. Notwithstanding any other provisions herein to the
contrary, the City may not enter into the contracts for the
Improvement Project until the Petitioners have each been given 15
days to review and object to the estimated costs thereof.
10. The City will let no contract for the Improvement Project
if such objection is made until and unless such objection is
subsequently withdrawn.
11. Absent the written consent of both TOLD and HRA, no part
of the Improvement Project described in Exhibit A can be removed in
awarding the contracts.
JBD119851
RC125 -66 3
is
IN WITNESS WHEREOF, the parties have set their hands the day
and year first above written.
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD,
MINNESOTA
By:
Its Executive Director
By:
Its Commission Chairperson
MERIDIAN CROSSINGS LLC
By:
Its
By:
Its
CITY OF RICHFIELD, MINNESOTA
By:
Its
By:
Its
ACKNOWLEDGEMENT
STATE OF MINNESOTA )
) SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this
day of , 1996, by and
respectively, the Executive Director and
Commission Chairperson of the Housing and Redevelopment Authority
in and for the City of Richfield, a Minnesota public body corporate
and politic, on behalf of the Authority.
Notary Public
JBD119851
RC125 -66 4
0 STATE OF MINNESOTA
) SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this
day of 1996, by and
respectively, the
and of Meridian Crossings LLC, a Minnesota
limited liability company.
Notary Public
STATE OF MINNESOTA )
) Ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this
day of , 1996, by and
respectively, the and
of the City of Richfield, Minnesota, a
Minnesota municipal corporation.
Notary Public
This Instrument Was Drafted By:
KENNEDY & GRAVEN, CHARTERED (JBD)
470 Pillsbury Center
Minneapolis, Minnesota 55402
612 -337 -9300
JBD119851 5
RC125 -66
EXHIBIT A
Description of Improvement Project
JBD119851
RC125 -66 6
0
0
EXHIBIT B
Permitted Encumbrances
1. Declaration of Easements and Related covenants and Revocation
of Prior Agreements, dated May 13, 1982, filed May 13, 1982 as
Document No. 4716372 in the Office of the Hennepin County
Recorder.
2. Right of access to Trunk Highway No. 65 acquired by State of
Minnesota as evidenced by Document No. 2732832, files of the
Hennepin County Recorder.
3. Easement for sanitary sewer purposes in favor of Village of
Richfield, as evidenced by instrument dated October 13, 1953,
filed October 14, 1953 as Document No. 2838854, files of the
Hennepin County Recorder.
4. Easement for communication purposes in favor of Northwestern
Bell Telephone Company, as evidenced by instrument dated June
29, 1983, filed October 26, 1983, as Document No. 4839378,
files of Hennepin County Recorder.
JBD119851
RC125 -66 7
EXHIBIT D
RELEASE AND WAIVER
I. RECITALS
1. The undersigned is the owner of a tract of land legally described as: Lot 3, Block
3, CLOVERLEAF ADDITION, Hennepin County, Minnesota ( "Property ")
2. The Property is abutted on the south and west by a dedicated roadway running
between Lyndale Avenue on the east and Interstate Highway 35W on the west which is generally
referred to as the North Frontage Road ( "Road ")
3. The Minnesota Department of Transportation ( "MN/DOT ") has under review
various options for the redesign of 35W and various adjacent roads including the Road. Certain
of the optional designs would call for the removal of the Road and the resulting impact on the
ingress and egress to and from the Property along its southerly boundary. The undersigned does
understand however, that ingress and egress locations will be made available to replace the lost
ingress and egress, although not likely at the same location.
4. MN/DOT is requiring, in anticipation of future activities to be undertaken on the
Road, that the undersigned waive and release any claim which the undersigned may have, caused
by the loss of access to the Road.
II. WAIVER AND RELEASE
On the basis of the foregoing recitals, and specifically upon MN/DOT's providing to the
undersigned, its successors and assigns, replacement access to the Property from the Road, and
on the payment of one dollar and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the undersigned, for itself, its tenants and its
successors and assigns to the Property hereby waives and releases the Minnesota Department of
Transportation, the State of Minnesota, together with any other government agency or authority
JBD101708
RC125 -66 1
having jurisdiction over the Road or Interstate Highway 35W, the City of Richfield, the Richfield
Housing and Redevelopment Authority and their respective officers, agents and employees from
any claim, or cause of action, of whatever nature known or unknown, occasioned by or arising
out of the temporary and permanent removal of access and ingress and egress to and from the
Road.
MERIDIAN CROSSINGS LLC
By
Its
0 By
Its
ACKNOWLEDGEMENT
On the day of ' 1997, and
personally known to me appeared before me and acknowledged
that they were the and respectively of
MERIDIAN CROSSINGS LLC, a Minnesota limited liability corporation and that they have
executed the foregoing investment on behalf of the Corporation.
Notary
JHD101708
RC125 -66 2
0
10
AGREEMENT EXHIBIT E
THIS AGREEMENT made and entered into as of the day of
1997 by and between MERIDIAN CROSSING, LLC, a Minnesota limited liability company,
( "Meridian ") and the CITY OF RICHFIELD, a Minnesota municipal corporation ( "City ").
RECITALS
1. Meridian is the owner of a certain tract and parcel of land lying within the City
on land legally described in the attached Exhibit A ( "Property ").
2. Pursuant to approval granted by the City, Meridian has constructed on the Property
a storm drainage system ( "Meridian System ") which empties into the City's storm sewer system
( "City System").
3. The Meridian System utilizes two features which are generally referred to as grit
chambers ( "Grit Chambers ") and located as shown on the attached Exhibit B.
4. The Grit Chambers are designed to remove sand, gravel and other particles from
the storm water passing through the Meridian System prior to its entry into the City System.
5. In order for the Grit Chambers to function as designed, the accumulated particles
must be removed from time to time.
6. The parties are desirous of entering into this agreement for the purpose of
authorizing the City to enter onto the Property from time to time for the purpose of inspecting
and maintaining the Grit Chambers as hereinafter provided
AGREEMENT
For good and valuable consideration, the receipt and sufficiency of which the parties
acknowledge, the parties hereby agree as follows:
JBD119899
RC125 -66
. 1. Meridian hereby grants the City, its officers, agents and employees the right to
enter upon the Property at intervals of once every 12 months, or more often if requested by
Meridian, for the purpose of inspecting, and cleaning the Grit Chambers. Upon the request of
Meridian, the area affected by this Agreement shall be legally described and recorded as a
supplemental agreement, at Meridian's sole cost and expense, to limit the area of the maintenance
easement appropriately.
2. Meridian agrees that it will reimburse the City for the cost of all such activities
based upon the City's normal charge rate for such activities. In the event of any necessary
maintenance or repair work which is estimated to exceed $5,000, the City shall give Meridian
notice of the need for such work and Meridian shall have fifteen days from the date of such
notice to secure performance of the work by a third party.
. 3. The City hereby indemnifies, and agrees to hold harmless, Meridian its officers,
agents and employees from any damage of whatever nature occasioned by or arising out of
Is
negligence by the City in actually conducting the activities permitted hereby.
4. Arbitration. The parties hereby agree that any dispute or claim between the parties,
whether related to this Agreement or otherwise related to the subject matter set forth herein, will
be resolved by and under the Code of Procedure of the National Arbitration Forum or under the
rules and procedures of the American Arbitration Association, and any award of the arbitrator(s)
may be entered as a judgment in any court of competent jurisdiction.
5. Entire Agreement. This Agreement constitutes the entire agreement between the
parties hereto regarding the subject matter contained herein and supersedes all prior agreements,
arrangements and understandings written or oral.
JBDI19899
RC125 -66 2
6. Severability. If any provision of this Agreement is held by a court of competent
jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless
continue in full force and effect without being impaired or invalidated in any way.
7. Governing_ Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Minnesota.
8. Recording. Meridian shall place this Agreement, or a memorandum thereof, of
record in the land records of the County where the Project is located within 20 days following
its execution by the parties.
9. Counterparts. This Agreement may executed in one or more counterparts, each
of which, when so executed and delivered, shall be an original, but together, shall constitute one
and the same instrument.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and
year first above written.
MERIDIAN CROSSING, LLC
By
Its
CITY OF RICHFIELD
By
Its
By
Its
r
OBD119:99 3
RC125 -6
1 ACKNOWLEDGEMENT
STATE OF MINNESOTA
) SS.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this day of 1997 by
Martin S. Kirsch and James D. Prosser, the Mayor and City Manager respectively on the City of
Richfield, a Minnesota municipal corporation on behalf of said City.
Notary Public
STATE OF MINNESOTA )
) SS.
COUNTY OF HENNEPIN )
. The foregoing instrument was acknowledged before me this _ day of
1997 by of Meridian Crossing LLC, a Minnesota limited
liability company on behalf of the company.
Notary Public
0-
JW119899
RC125 -66 4
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 18
Agenda April 21, 1997
Issue Statement:
Public hearing and authorization to sell 6205 Morgan Avenue to Shade Tree
Construction, Inc., and 7415 Third Avenue and 2517 West 70th Street to Rockport
Homes, Inc. for Richfield Rediscovered single family home development.
Background:
The HRA acquired 6205 Morgan Avenue in December 1996. The property had been
maintained by the HRA for several months prior to purchase, having been vacant since
a fire in November 1993. The demolition is now complete and Shade Tree
Construction, Inc. is ready to proceed with the construction of a new single family home
for the buyer. The new home at 6205 Morgan Avenue will be a three bedroom, two
bath home. Its estimated value is $130,000.
The lot at 7415 Third Avenue was subdivided by its owner. The HRA purchased the
south lot, which will be developed by Rockport Homes, Inc. The completed property
value of the three bedroom home will exceed $135,000. The property at 2517 West
70th Street is the second lot that resulted from the subdivision of 7001 Sheridan last
fall. (The first lot resulting from the subdivision was at 2513 West 70th Street. The
home on that lot is complete.) Rockport Homes, Inc. is proposing to build a one and
one -half story house with three bedrooms valued at approximately $159,000. It is
proposed that the HRA sell the properties to the respective builders, in accordance with
the development agreements. The development agreements are similar in form and
content to those used previously for the Richfield Rediscovered Program.
Recommended Motion:
Following a public hearing, adopt the resolution authorizing the sale of 6205 Morgan
Avenue to Shade Tree Construction, Inc. and 7415 Third Avenue and 2517 West 70th
Street to Rockport Homes, Inc. and authorizing the execution of appropriate documents
by the HRA Chairperson and Executive Director.
Basis of Recommendation:
1. The builders have evidenced experience, capability and financial security. Shade
Tree Construction, Inc. is building under the program for the first time.
2. The HRA acquired the properties for the Richfield Rediscovered Program.
3. The terms of the development agreement have been negotiated and are in
conformance with program guidelines.
7_.�
0 4. Notice of public hearing on the sale of the properties was published in the Sun
Current for an April 21, 1997 hearing.
Alternative Recommendation:
Do not proceed with the development agreements with Shade Tree Construction, Inc.
or Rockport Homes, Inc. and direct staff to find other buyers.
Discussion /Decision Mode:
Closings would occur in late April and early May, with construction starting soon
afterwards.
Respectfully submitted,
Jams . Prosser
Executive Director
JDP:ds
0
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HRA RESOLUTION NO.
S RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY
LOCATED AT 6205 MORGAN AVENUE TO SHADE TREE CONSTRUCTION, INC.
AND 7415 THIRD AVENUE AND 2517 WEST 70TH STREET TO ROCKPORT
HOMES, INC. IN ACCORDANCE WITH DEVELOPMENT AGREEMENTS
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 attached; and
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
development agreements are negotiated as follows:
Performance
Address Sale Price Security
6205 Morgan Avenue $27,000 $27,000
7415 Third Avenue $32,000 $32,000
2517 West 70th Street $32,000 $32,000
Builder
Shade Tree Construction, Inc.
Rockport Homes, Inc.
Rockport Homes, Inc.
40 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 6205 Morgan Avenue is authorized to be sold
for $27,000 to Shade Tree Construction, Inc.; 7415 Third Avenue is authorized to
be sold for $32,000 to Rockport Homes, Inc.; and 2517 West 70th Street is
authorized to be sold for $32,000 to Rockport Homes, Inc. in accordance with
development agreements with the HRA.
2. The Chairperson and Executive Director are authorized to execute Contracts for
Private Development and other agreements as required to effectuate the sales to
Shade Tree Construction, Inc. and Rockport Homes, Inc.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 21 st day of April, 1997.
Thomas E. Harms, Chair
ATTEST:
•
Michael Sandahl, Secretary
• LEGAL DESCRIPTIONS
7415 THIRD AVENUE
The West'/ of the South 59.45 feet of the North 267.8 feet of the West Y2 of the
Northwest Quarter of the Northeast quarter of the Southeast quarter of Section
34, Township 28, Range 24, Hennepin County, Minnesota. Subject to an
easement for road purposes over the West 30 feet of the above land as shown
Deed Document No. 945672
2517 WEST 70TH STREET
That part lying west of the east 66 feet of that part lying north of the south 130
feet and lying south of the north 30 feet of Lot 7, Sabin Lake Harriet Garden
Lots, acording to the plat thereof on file and of record in the office of the Cunty
Recorder in and for Hennepin County.
6205 MORGAN AVENUE
Lot 2, Block 1, Melbar Addition
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PRELIMINARY ELEVATION AND FLOOR PLAN
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 17
Agenda April 21, 1997
Issue Statement:
Public hearing and consideration of the sale of 6601 Bloomington Avenue (former Tip
Top Car Wash site).
Background:
The HRA acquired this property to remove a blighted condition and to facilitate the
appropriate redevelopment. The property is zoned C -2 (general commercial) and the
commercial reuse is consistent with the Comprehensive Plan. The Planning
Commission passed the resolution to that effect at their March 25, 1997 meeting.
Two proposals have been received for the redevelopment of the site. Clinton Press
Inc., which is currently located immediately across 66th Street from this site, is
proposing to construct a 6,600 sq. ft. building and relocate their printing business from
their current location to the new building. Clinton Press, Inc. currently leases its facility.
The other proposal is from the Minnesota Valley School of Music, LLC. (MVSM).
MVSM is a private music school located in Bloomington which specializes in teaching
piano and string instruments. They are proposing to build a 6,800 sq. ft. split level
building to house their music school. A comparison of the two proposals is attached as
is material submitted by each proposer.
A Developer's Agreement is not required to effectuate the land sale. At the time of
closing on land sale, the selected developer would be required to submit an executed
construction contract and executed financing document.
Current Clinton Press Site
If the HRA selects Clinton Press as the developer of 6601 Bloomington Avenue it may
also want to direct staff to explore the possible acquisition of the current Clinton Press
building and the three adjacent properties to the east, for redevelopment. The three
lots contain two homes and two garages.
The approximate acquisition budget for the four properties would be $400,000 -
500,000. The expected resale value of the land would be approximately $112,500. To
date there has been no contact with any of these property owners. Their intentions are
not known.
Recommended Motion:
Adopt a motion which approves the attached resolution and select either Clinton Press,
Inc. or Minnesota Valley School of Music, LLC. as the developer.
•
Basis of Recommendation:
1. The HRA purchased this property to remove a blighted condition and to facilitate
appropriate redevelopment. The proposed commercial reuse of the property
would accomplish both of these objectives.
2. The Planning Commission found commercial reuse to be consistent with the City's
Comprehensive Plan..
3. The proposed uses permitted is within the C -2 (general commercial) zoning district
of which this site is a part.
4. Legal notice of the public hearing was published in the Sun Current on April 9,
1997.
5. Letters were sent to adjacent owners and residents inviting them to attend the
April 21, 1997 public hearing.
Alternative Recommendation:
1. Defer action and continue the hearing until May 19, 1997.
2. Reject both proposals.
Discussion /Decision Mode:
Representatives of both groups will be in attendance at the meeting to discuss their
proposals.
The MVSM has a lease at their current location in Bloomington which expires in August
1997.
Respectfully submitted,
Jame . Prosser
Executive Director
JDP:ds
•
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY
AT 6601 BLOOMINGTON AVENUE
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield
(HRA) has acquired the property at 6601 Bloomington Avenue legally described as North
250 feet of the West 1/4 of the Northwest 1/4 of the Northeast 1/4 of the Southeast 1/4
except streets; and
WHEREAS, the HRA has sought a redeveloper for the site; and
WHEREAS, the HRA has evaluated a proposal from Minnesota Valley School of
Music, LLC. and Clinton Press, Inc.; and
WHEREAS, an independent real estate appraiser has valued the property for
redevelopment purposes at $106,800; and
WHEREAS, the HRA is authorized to sell real property within its area of operation
after public hearing; and
WHEREAS, the public hearing has been held after proper notice; and
WHEREAS, the Planning Commission of the City of Richfield has determined that the
disposition of the Property for Project purposes is consistent with the Comprehensive Plan.
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 on the sale of the, real property described above.
2. Sale of the property to for $106,800 is hereby approved.
3. The Chairperson and Executive Director are authorized to execute any and all
agreements required to effectuate this Resolution.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 21st day of April, 1997.
ATTEST:
Michael Sandahl, Secretary
Thomas E. Harms, Chair
•
•
PROPOSAL COMPARISON
Clinton Press, Inc. I Minnesota Valley School of Music, LLC.
Proposed Use
Retail sales and printing
Music school and office space
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6,600 sq. ft.
6,800
Construction
(bldg. size /style)
one story
two story
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similar material
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Brick and stucco
Exterior Material
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Estimated Construction
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$250,000 or $38 /s.f.
.YSS. ,i ..n. �.v,.,...... +• ,'�yi +. �ii
$298,575 or $44 /s.f.
Budget (excluding land)
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$106,800
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Land cost (proceeds to
HRA)
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Est. $20,269*
Taxes (tax was $4,528)
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Off - street parking spaces
Provided: 26
Provided: 26 (a slight adjustment in site
plan will yield 27 spaces)
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To be determined.
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Qualified letter of commitment
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Letter to be available at HRA meeting,
Financing
Signal Bank, Eagan
April 21
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Tim & Laurinda Heinecke
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Mary Ann Nomtvedt and Kathryn
posers /Owners
r
Ellickson
• *Estimated by multiplying construction budget plus sale price of land by 5 %. The actual tax will vary.
•
tilt.;.Ni \l, BANK.
111•:51 S7 . ►', \1;1.
ltltl .NINtl rl1 11 Aril 11, 1,997
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Mr: Timothy A, 1-leinecke
Minton Press
1524 East 66th Street
1 ><<i �,t tJ.,.,.11t, -��.11 Rd.
Richfield. MN 55423
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,,,,,,, r,;:)i F" (;J RE: SBA Loan Application
17 ,::,. �t"�
i 2:;(i' . \V . ti >. ' Dear Mr. Neinecke:
kt": 612: j('(' 1 SCl i After review of your financial statements and project information, Signal Bank, Inc.
feels that an SBA loan is feasible for your land and building construction project in
Richfield.
Upon obtaining finalized project cost information, Signal Batik, Inc. will prepare an
i SBA loan application. Please call me at 30-1658 if you should have any questions.
i
I look fonvard to working with you on your project!
Sincerely,
SIGNAL BANK, INC.
Sheil N. Nelson
Vice President
,SBA Lending
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MINNESOTA VALLEY SCHOOL OF MUSIC
8900 PO AVENUE SOUTH, B115
BLOOMINGTON, MINNESOTA 55420
:: ' '
To The Housing and Redevelopment Authority Committee Members,
We are still searching for a site on which to build Minnesota Valley School of Music
............and our time is running out.
The Richfield location at 66th Street and Bloomington Avenue seems ideal since it is readily
accessible to our students by freeway and the cost of the land fits our budget, enabling us to build
a new "musical home" rather than just lease space.
Our school would be an asset to the city. Right away, it would bring 200 families to the area
every week who may then patronize Richfield businesses. We would also provide a focal point
. for community music enrichment, offering piano and string lessons for people of all ages. We
would be interested in having our teachers offer small public recitals and our students would
enjoy performing at community events.
In recent years public schools have been forced to drop many music and arts programs and
private schools such as ours have prospered. We have experienced a 20% increase in enrollment
annually for the past several years resulting in our critical need for more room.
Early music training and it's impact on math skills, reading and self- esteem have been reported
in scientific journals such as Neurological Research and the results have received national
attention through articles in Time and Newsweek. We sincerely request that our proposal be
endorsed by this committee so that we may then become promoters of the arts in Richfield and
active in your community.
Thank you for your consideration,
,�a*e ��
0 Kay Ellickson MaryA n Namtvedt
lvl
• April 8, 1997
TO Richfield Housing and Redevelopment Authority
ATTENTION. • Mr John Melin
Manager Community Development
City of Richfield
FROM. Minnesota valley School of Music
Dear John and Staff
Please find enclosed proposal information for the Hearing on April 21, 1997
We will be using the same exterior Drawing as was used in the first presentation
in as much as, the change in location only changes the dimensions of the building and not the
overall appearance.
We believe that the proposed SITE PLAN satisfies all of the Development Standards set forth by
you in the "LOOKING AT RICHFIELD' Fact Sheet. The plan includes extensive landscaping
using both deciduous and evergreen planting. The deciduous trees will be a mix of Hard Maple,
and spring blossoming fruit trees. In addition, the plan allows for an abundance of foundation
plantings. Note the signage will be surrounded by a mixed perennial /Rose Garden.
The South Side of the property will have a esthetically pleasing fence to the residential
neighbors. Materials will be of wood. We will submit a section plan for approval prior to
construction.
We believe that this site not only allows for immediate attractive construction and utilization, but
also allows for additional growth, (so that we don't have to spill out onto the neighborhood
streets for parking) - as an example.
1 want to let you know that Kay and I need to be in Evanston, Illinois from April 15, through
April 20th. Therefore, we ask that you call Mary Ann at the School # 884 4646 in case there is
adddonal information you desire,
Respectfully,
Minnesota Valley Scool of Music
Mary Ann, Kay and Chuck
612 994 9615 or 884 4646 Fax 996 0864
•
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SWORN CONSTRUCTION STATEMENT
Description of work Estimated Expenditure
Surveying
975
Architecture /Plans
3,000
Appraisal
800
Building Permit
6,300
Excavating / Final grading
4,000
Landscaping / Sprinkling system
7,000
Footings
11800
Foundation / Rigid insulation Formed
15,300
Concrete Floors
5,700
Entry Way and Walks
2,500
Driveway and Blacktopping
12,000
Brick Work
5,400
Stucco
7,000
Lumber / Framing, Trusses, Finish, Roofing
49,000
Windows / Doors
12,000
Carpentry / Roofing Labor
16,500
Heating / Ventilating, Airconditioning, Air Exchange
12,000
Plumbing / Baths, Kitchen
11,000
Electrical / Lighting fixtures
10,000
Insulation / Sound Batting
5,300
Acoustical Ceilings /
4,000
Ceramic Tile / Linoleum
6,000
Carpeting
4,000
Kitchen Appliances / Refrig. Microwave Oven, Disposal, C- Vac
2,000
Cabinets / Countertops
2,500
Painting
2,500
Music Studios / Sound Reducing Modules t 10)
26,000
Music Equipment / Recital Room Grand Piano, Chairs, Display
cabinet, Music Stands, Bulletin boards, Office Desk.
17,000
Telephone System
3,000
Contractor Fee
25,000
Lift
10,000
Land Cost
106,800
Financing Costs
9,000
Total Estimated Costs $405,375.00
This statement is prepared subject to Final Plans and written Proposals from Subcontractors.
The estimates are felt to be reasonable and within acceptable standards.
Look at the following -
Music Studios - They are a specialty item. Quotes for pre manufactured studios have been as
high as $15,000 per studiio. These studios will be custom made on site.
Studio Equipment is special as well.