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02-28-95 agenda
CITY OF RICHFIELD TUESDAY, FEBRUARY 28, 1995 REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING COUNCIL CHAMBERS 7:00 P.M. AGENDA CALL TO ORDER APPROVAL OF MINUTES OF (1) REGULAR HRA MEETING OF JANUARY 17, 1995 AND (2) SPECIAL HRA MEETING OF FEBRUARY 13, 1995 1. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON THE AGENDA 2. CONSIDERATLON OF RESOLUTION AUTHORIZING CONDEMNATION AND QUICK TAKE OF PHASE II, SHOPS AT LYNDALE, ILN REDEVELOPMENT PROJECT HRA LETTER NO. 10 3. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING SALE OF PROPERTY TO CSM CORPORATION TO PROVIDE FOR CONSTRUCTION OF PHASE II SHOPS AT LYNDALE, ILN REDEVELOPMENT PROJECT HRA LETTER NO. 11 4. CONSIDERATION. OF RESOLUTION AMENDING CONTRACT FOR PRIVATE DEVELOPMENT, CSM HRA LETTER NO. 12 5. CONSIDERATION OF SUBORDINATION AGREEMENT, PHASE I, CSM HRA LETTER NO .13 6. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION TO CONTINUE SECTION 8 PROGRAM LOCAL PREFERENCE CRITERIA AND MAKE NONSUBSTANTIVE CHANGES IN ADMINISTRATION PLAN HRA LETTER NO. 14 7. CONSIDERATION OF CONTRACT WITH JOHN SZARKE TO FORMULATE "TOGETHER WE CAN," AN APARTMENT RESIDENT SELF-SUFFICIENCY PROGRAM HRA LETTER N0. 15 8. CONSIDERATION OF LEGISLATIVE PROPOSAL TO ENABLE HRA TO ESTABLISH PROPERTY HOLDING NON-PROFIT CORPORATIONS HRA LETTER NO. 16 9. CONSIDERATION OF STIPULATIONS DF SETTLEMENT REGARDING CONDEMNATION. OF PHASE I PROPERTIES HRA LETTER NO. 17 10. EXECUTIVE DIRECTOR REPORT 11.' 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. . II ,i ~ 'I '; ~ I' I O ~ !d' ~~ M I~ ~"'~ IN !M ~~ ',~ ~' ', U I L ~ ~ 0 '' I ~_. i ~ ~ ~ _N 1 ~ ~ 1 Q ~ ~ '' II O l f I °U ; I N ~ ~ ~ !N 'M ~ __ ~~, ` ~ ~ 41 ~ G1 ~= tai 'I ~ x '~, l'l ~/ ~ I i ~ I ~ ,~ ~ '~ I ~ ~ y ,I ~ o ~ U '~ ~ I ~ L ~ a n. ~ .c1 ow~~ dE ~ a oU i a~ U.v_,=~ o o i ~+ ~ o U 1 r' ti ~~ 00 0 ~ o o j ~ ;ry N ~O N r- ti ti ~~ ~ I "~ T ~ i ~ ~ O ~ ~ o ~ ~ >+ ~ U o ~ O .~ U V Q.. m V ~ U .0 ~ U Q. m ~ ~ '~ ~ ~' ~ ~ ~N U~ ~V O ~ U C ~Z N U ~~ U ~ a ~ ~ a~i '7 ~ o .Q ~ ~ -tea "~' ~ Q- a ~ o o ~ ~ ~ 2 ° N ~ ~ .-Q U ~ to c ow o~ ~ ~.~Q~~ o~ w ~ ~ ~~~~ ~ g.N o~ ti ~ ca c~=a , d~~acaa ~ a~r~. ~I' ~ °'~o°'oo N ~ci i` r~ ~~ ~n `'N ~ ti r .HOUSING AND REDEVELOPMENT AUTHORITY. HRA Letter No. 17 Agenda February 28, 1995 Issue Statement: Consideration of stipulation of settlement regarding the condemnation of Phase properties. Background: In April 1994, the HRA commenced an eminent domain action to acquire eight properties located in Phase I of the CSM Shops at Lyndale project. Final settlements have been negotiated with owners of all properties, with the exception of the properties at 7738 Colfax Avenue South (Parcel 7), 7726 Colfax Avenue South (Parcel 6), and the land at the southeast quadrant of 77th Street and Colfax (Parcel 5). The condemnation commissioners had scheduled hearings on Parcels 5, 6 and 7 to commence on February 27, 1995. The hearings were expected to last approximately four weeks. On February 23 and 24, the owners of Parcels 5, 6 and 7 agreed to settle their condemnation claims, subject to HRA approval Recommended Motion: 1. Adopt a motion approving the stipulation of settlement for Parcel 7 in the eminent domain action. 2. Adopt a motion approving the stipulation of settlement for Parcels 5 and 6 in the eminent domain action. Basis of Recommendation: 1. The HRA staff and attorney have determined that the proposed settlements are reasonable, in light of the appraisal evidence expected to be introduced at trial. 2. The proposed settlements are acceptable to the property owners. 3. By accepting the proposed settlements, the HRA will avoid additional litigation costs, including attorney, appraiser and commissioners fees for hearings that were anticipated to take four weeks of trial 4. CSM is obligated under its Contract for Private Development to reimburse the HRA for the settlement amounts, plus the HRA's costs and expenses. . Alternative Recommendation: 1. None. Discussion/Decision- Mode: The property owners have requested that the agreements be approved and payments be made at the earliest date that is convenient to the HRA. Approval of the agreements will bring the Phase I acquisitions to a conclusion. Respectfully submitted, Jams .Prosser Exe ve Director JDP:cak caARD AtLarne?s aL Lew ~*~ sry~ 478 Pilkbaey Cea+~er, MiOneipd; (6I-) 337-430Q I.AL'Yw 1-. ~S41.i83' ROiEitT A" Absor BARBARA L PoRrw'oor Raxww fit. BnrrY . Facsimile (61~) 337-930 JAMES;i Si'so14MEH 9zeaesrr J. Biresa. J,u,~s J- ~. 7R. Josx B. t~EAr- _ IwASQY'.~1- WEP'iIIEAr[ „G. Douce ~' °~ BoxxLE L wLx+m~a s. cit 1~ G,.L.eY GARY P. WLx7YY COausIItB A. HEtx1E Jas S. Hoza~GS WRIT6R5 DIItECT DW. DAti'1m L GRA'~.`t u9xs-xs9u p~vm J. R:Exh-~c 337-9219 0: c~uNau, ior3r R i.AR9ox ROSt1tr C. ~AxLSOx C'BA1tL~5 L 1.F~EV~7tE I2oSERT L DAVIDSO4 Josh ~. '1CFw srt February 28, 1995 w~v~crov B. l +w RoBSRr J• LlitDwLL '('_ JwY SAi.MP'.R' ROifiRr C_ Y.4rG C4N~AENT'IAL ATTORNEY/CLIENT' CONICATTON Bruce Palmborg Housing and Redevelopment Coordinator Richfield bIRA 5700 Portland Avenue South Richfield, MN 55423 x~e: Richfield HJ:IA v. City of Richfield Robert k'. Adelulann, Parcel 5 Robert F. Adelmann Trust, Parcel B Court File CD~2324 7704 and 7726 Colfax Avex3.ue South Our ~`ile KC125-58 Dear Bruce: BY FAX AN17 MAIL 861-9749 Enclosed is a proposed Stipuia'tiom in settlement of the above matter. Please review and comment. If you find it xn acceptable form please submit it to the HRA Board: for approval {at the February 28 meeting, 3f possible) . Thank you. The settlement amount of $850, 000 represents approximately $10.02 per square foot of Land, including the buildings on Parcel 6, ~'he settlement amount includes ix~.terest on unpaid balances to the date of payment, which is to be within 10 days after HRA Board approval ar signature of the Stipulation by all parties, whichever is later. We consider this amount to be approximately 40~s•pf the difference between -the ITRA's highest appraiser and the owners appraisal testimony. We recommend the settlement. We understand that it is acceptable to CSM Investors, Inc., which wiU be reiuabursing the kIR.A for the settlement amount. Very truly yours, Ro ert . Liadall R.~i,: ds cc: Jobe Dean Corrine Heine Bill Fran: {by fax 846-2404) pJS.84539 RC125-68 B/~ 30t7d 0 Z E6GEEZ 1 9' Q I hl3/1tf2[J ''8 53Fi'IOH' F102[3 1 I ° 01 S6-B7+-S33 Case Type: Condemnation STAB OF MINNESOTA DISTRICT COURT COUNTY OF HENNEPIN FOURTH JUDICIAL DISTRICT xousing and Redevelopment Authority in and for the City of Richfield, a~public body }STIPULATION AGREEMENT BETWEEN corporate and politic under the } RIG~'IELD HRA AND laws of the State of Minnesota, } ROBERT F. ADELMANN, . }~ LORRAIN'E ADELMANN AND Petitioner, ) ROBERT F. ADELMANN TRUST vs. ) Court File No. GD-2324 City of Richfield, et al., ) } PARCELS 5 AND 6 Respondents. ) THIS STIPULATION AGREEMENT is entered into as of the last date of execution recited below, by Petitioner Housing and Redevelopment Authority in and fot the City of Richfield, a public body corporate axid politic under the laws of Minnesota { "IiR.A") , Respondents Robert • F. Adelmann and Lorraine M. Adelmann ("Adelmann") and Respondents Aaniel Adelmann and David Adelmann, as Trustees for the Robert F. Adelmann Trust ("Trust") (collectively, Adelmann and Trust are sometimes referred to herein as "Respondents"}, which each hereby stipulate ahd agree to the complete settlement of the above captioned matter upon the following terms and conditions: I. RECYTALS 1.01. On Apri]. 29, 1994 HRA filed its petition in this matter commencing acquisition by eminent domain proceedings of the real ,estate described in Exhibit A attached hereto and incorporated herein { "Subject Pa~operty" ) pursuant to Minn. Stat. Ch. 117. At the ~aasaa 1 RC225-b8 9/E 30ttd 0LE6LEEZZ9'OI AI3l1tf2i0 '8 S3Yd'IOH°WO'c13 ZL °0L 56-8Z-933 time the Petition was filed, Adelmann was the fee owner of Parcel 5 described in Exhibit A and the Tx-ust was the owner of Parcel ~ described in Exhibit A. 1.02 . on August 5, 1994, the HRA paid Adellnann $354, 000 as its approved appraisal of value ( Quick Take Payment ) izI order to transfer title and possession of Parcel 5 to HRA under Minn. Stat. ~ 117.042 (the "Quick 'R'ake Statute"). 1.03. pn August S, 1994, the HRA deposited $182,915 ("Quick Take Deposit") with. the District Court Administrator herein as its approved agpra~.sal amount for Farce3. 6 puxsuant to the Quick Take Statute. 1.04. On November 15, 1994 the Court herein found that the Trust was entitled to receive disbursement of the entire amount of the Quick Take Deposit with respect to Parcel 5. 1.05. ~Fearings were scheduled to be held before the Count appointed Commissioners beginning February 27, ].995 with respect to the Respondents' claim for damages. due to the taking of Parcels 5 and 6. 1.a6. HRA and Respondents desire to compromise and settle any and all claims-which Respondents may have or claim to have against HRA as a result of the: taking of the Subject Property in this proceeding. II. AGREEMENT 2.03.. Settlement Amount. HRA and Respondents agree that, including the Quick Take. Deposit and Quick Take Payment, .the amount Qf damages to be paid by HRA to Respondents for the taking of the Subject Property is Six Hundred Thousand Dollars ($600,040) to nnsa~4a xcl.zs-s$ Z 8/~i 30tYd 0 t E6GEEZ t 9° Q I N311tl2I0 '$ S3Ft'IOH ° Yd02[3 Z E- 0 L S6-BZ-SS3 Adelmann for Parcel 5 and Two Hundred Fifty Thousand Dollars ($250,004} to Trust for Parcel 6. In each case, such amount is agreed to be sufficient to compensate Respondents for all sums due to Respndents for the taking o~ the subject Property, including but not limited to damages, interest, costs, disbursements, relocation benefits, and appraisal fees. 2.02. Final Payment. With~.n.ten. (10} days- following approval of this Agreement by the Board of Commissioners of xRA .and execution of this Agreement by all parties, whichever occurs last, HRA shall deliver its checks to Rosen ~ Rosen, as attozneys for Respondents, wha.ch shall be made payable to Adelmann in the amount of $246,000 ("farce]. 5 Final Payment") and to Trust in the amount of $67,085 ("ParCe1.6 Final Payment"}. 2.03. Waiver of Rights. HRA and Respondents hereby waive their respective rights to further hearings or proceedings in this matter, effective upon the filing of .thus Agreement with the District Court Administrator. and payment by HRA of the Parcel 5 Final Payment and the Parcel 6 Final Payment to -Respondents as described in Section 2.02 hereof. Respondents also hereby waive their rights to seek any further costs, disbursements, relocation benefits, damages, interest, appraisal fees and attorney fees herein. ATI,84543 RC125-68 3 i 8/S 30'a'd 0LE6GEEZL9'III I~I3l1tf210 '8 S3YS'IOH°W0213 ZL °0I S6-BZ-H33 HOLMES & GRAVEN CHAR7.`ERED By _ Robert J. Lindall, #63277 Corrine Heine, #149743 470 Pillsbury Center Minneapolis, MN 5540 {612) 337-9304 ~f,TTORNEYS FOR P$TITI0~3ER HOUSING AND REDEyELOPMENT AUTHORITY IN AND FOR THE CxTY. OF RICHFYELD _~ ROSEN & ROSEN By William S. Rosen #, 2510 World Trade Center Bldg. 30 East Seventh Street St. Paul, MN 55101 {612) 227-7731 ATTORNEYS FOR REgFONDENTS ROBERT F . ADELMAI~IN, LORRAINE M • ADEX,MANN AND ROBERT ~' . ADELMANN TRUST Robert F. Adelmann Loxraine M. Adelmann, his wile ROBERT F . ADELMANi+~ TRUST By David Adelmann, Trustee And Daniel Adelmann, Trustee RTL84543 RC125-68 4 1995 Date of Execution 1995 Date of Executian ,.1995 Date of Execution 1995 Date of Execution 1995 Date of Executian 1995 Date of Execution 6/9 30'dd 0 L E6GEEZ L 9 ° Q I AI311'd2i0 '8 53Yd'IOH' bI02t3 E Z ° 0I 56-8Z-833 Exhibit A Parcel 5 {Abstracts {pID # 33-~OZ8-Z4-44-„001: Description of Property to be Timken: The North 255 feet of the West 320 feet of the South 1/Z of the Southeast 2/4 of the Southeast l/4 of Section 33, Township 28, North Range 24, West of the 4th PrinCi.pal mexidian, except the East 30 feet thereof and except the West 130 feet of the East 1b0 feet of the South 50 feet thereof, Hennepin County, Minnesota Limitation on taking: The taking of the above-described parcel is subject to the interest of the C3.ty of RichfSeld in an easement for street purposes dated October 19, 1953, filed December 2, 1953, as Document No. 2848415, over the North 38 feet of said parcel. Name Robert F. Ade3mann Loraine M. Adelmann City of Richfie7.d County of Hennepin Nature•of Interest Fee Owner inchoate interest Special assessments Real estate taxes r 1 C]-H6~633 RC.YS-68 8/G 3017d @LE6GEEZL9~QI N3/1d210 'S S3AI'IOH' Y10213 E Z ° 0 Z S6-6Z-833 Exhibit A (cont'd} Parcel 6. (Abstract ) PID ~ 33-028-24-44-0027 L Descri Lion of Pro ert to be Taken: The-South 90 feet of the North 345 feet of the west 320 feet of the South One Half (S 1/2) of the Southeast Quarter (sE 1/4) of the Southeast Quarter (SE 1.14) of Section 3~, Township 28 North, Range Z4, West of the 4th Principal meridian, except the East 3C~ feet thereof ,.. according to the Unitett States Government Survey thereof, Hennepin County, Minnesota Name Nature of Interest Daniel Adelmann, as Trustee of Fee Owner the Robert F. Adelmann Trust David Adelmann, as Trustee of Fee Owner the Robert F. Adelmann Trust Troy W. Ford and Wi.Iliam Tenant• Vaughan, individual3.y and d/b/a/ Ultimate Detailers City of Richfield Special-assessments County of Hennepin Real estate taxes CAH67633 RC~,2$-68 B/S 30ttd 0LE6GEE8L9'QI I~I3l1tt'2I9 'S S3W'IOH°W02I3 bL °0L 56-BZ-H33 • Ho~.ivt~s ~ GxAVEN CHARTI3RED Aswrneyc at Law 270 PilLY6ury Center, Mlnneapdis, Minaesota SS402 RAai:RT A. ALSOP (til3) 337.9340 LAURA K. MOL1.Yii' RONALD H. BATTY i3AA8ARA L. PORTWOOD g7yppR~ J. g~~ Frzcsllniie (613) 337.7310 JAM1iS M. STROSIMev JppN ~. RICAN JAMES J. THO.'KSON, JR. MARY G, pAa><tN~ LARRY M. WRRTHLIM STPY+'ANIE N. GALIY BONNi1E i" WI!'RIN& COYRINE A. H81NC GARY P. WINTER JAMES S. HOLMES WRITERS DIRECT DIAL DAVID L. GsAYEN (1929.194],1 D~V1DJ. KRNNmY 337-9219 oFCOONSt1, 3o77N R. LAItsoN t~7ARLltti I. Lttlr'6VtOtE RORLHT C. CAAIBON Jo1IV M. Ltf~vR~, JR. Februa 2? 1995 ry RosERT L. DAYID90Y ltonrsT J. L1NpALL. : wEI.LINaTt)N H. LAW ItOtI$:RT C. LONG T. JAY SALAlEN CONFIDENTIAL ATTORNEY/CLIENT :COMMUNICATION Bruce Palmborg Housing and Redevelopment Coordinator Richfield HRA BY FAJ~ ANn MAIL 6708 Portland Avenue South 861-9749 Richfield, IUXI~ SS423 re : Richfield HRA v . City of Richfield Cutler Al~imal Hospital, Parcel 7 Court File CD~2324 ??38 Colfax Avenue South dur File RC1~25-68 Dear Bruce: Enclosed is a proposed Stipulation in settlement of the above matter. Please reviernr-and comtxlent . If you find it acceptable, please submit it for approval by the HRA Board at its February 28, 1995 meeting, if possible. Thank you. The settlement amount of $820, 000 is intexzded to satisfy all outstanding claims of the owner, Dr. Donald Maki. These include land and buildings, a ground lease far a Naegele advertising sign which pays $2, 080 per month-and arguably could have run until December 31, 2008 (depending on whether the City's Sunset ordinance will be enforceable without payment of compensation} , a going concern claim, interest of more .than $10; 000 an unpaid balances; relocation claws (which may total over $37, 000} , and all other claims of the owner in this proceeding. We recommend approval of the settlement. Very rely ours, Robert J. Lindall R.JI, : ds ec : John Dean Corrine Heine Bill Frank (by fax 646-204) )~.rl.sa~a¢ xc125-68 Case Type: Condemnation STATE OF MINNESOTA DISTRICT GOURT COUNTY C?F HENNEPIN FOURTH JUDICIAL DISTRICT Housing and Redevelopment ) Authority in and for the City. of ) Richfield, a public body ~STIPULATiON AGREEMENT BETWEEN corporate and politic under the ) RYCFiFTELD HRA AND laws of the State of Minnesota, )DQNALD T. MAKI, INDIVIDUALLY AND D/8/A CUTLER SMALL Petitioner, ) ANiMAYa HOSFITAL & CLINIC ) AND JEANNINE M, MAKI vs. } } Court File No. CD-2324 City of Richfield, et al., } PARCEL 7 Respondents. ) THIS STIPULATION AGREEMENT is entered into as of the last date.. of execution recited below by Petitioner Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of Minnesota ("HRA"), Donald T. Maki, individually and d/b/a Cutler Small Animal Hospital & Clinic and Jeannine M. Maki. ("Makis"). HRA and Makis hereby stipulate and agree to the complete settlement of the above captioned matter upon. the following terms and conditions: i. RECITALS 1.01. HRA commenced this proceeding to acquire fee simple title to the real estate described in Exhibit A attached her®to and incorporated herein ("Subject Property") pursuant to Minn. Stat. X117.042 (the "Quick Take" Statute). R~r.aesa~ ,1 RC125-BB 1.02. On August 5, 1994 ("Date of Taking") HRA deposited $290,.773 (Quick Take Payment} with the District Court Administrator as its approved appraisal amount for the Subject Property pursuant to the Quick Take Statute. 1.03. As of th® Date of Taking the fee owners of.the Subject Property were .lames H. Cutler and Nancy B. Cutler, subject to a Mortgage {"Mortgage") in favor of the Small Business Administration of the United States ("SBA") and a Contract for Deed in favor of Makin ("Contract for Deed"). Attached hereto as Exhibit S is a copy of a Warranty Deed dated November 3, x.994 from Cutlers to Makin evidencing satisfaction of the Contract for Deed. Attached hereto as .Exhibit C is a copy of the Release of Real Estate Mortgage executed by SBA to confirm payment in full of the .debt described in the Mortgage. x..04. On December l3, 1994, HRA paid Makin $44,50f1 ("Additional Payment")~as a partial payment of the comp®nsation which HRA may ultimately be required to pay Makin as a result of the taking of the Subject Property herein. ~. 1,05. Hearings were scheduled before the Court Appointed Commissioners with respect to the Subject Prop®rty to begin March 13, 1.995, but those proceedings have been postponed indefinitely due to the pending settlement of this matter. 1.05. HRA and Makin desire to compromise and settle any and all claims which Makin may have or claim to have against HRA as~a result of the taking of the Subject Property in this proceeding. RJL8~547 AC125-68 '~ Dollars ($820,000), including but not ].invited to damages, interest, costs, disbursements, unpaid relocation benefits, if any, and reimbursement of appraisal fees. 2.02.. Final Payment. Within ten (ZO) days following approval of this Agreement by the Board of Commissioners of HRA and execution of this Agreement by all parties, whichever occurs last, HRA shall deliver its check to Leland Frankman, Attorney for Makis herein, which shall be made payable to Makis and Leland Frankman, as their ~.nterests may appear, in the amount of $484,72? ("Final Payment"). 2.03. Waiver of App®al Rights; Costs and Disbursements. HRA and Mak1.s hereby waive their respective rights to hearings before the Court Appointed Commissioners and further proceedings in this matter, effective upon the filing of this Agreement with the Aistrict Court Administrator and payment of the Final Payment. Makis also hereby waive their rights to seek any further damages, casts, disbursements, relocation benefits, apprait~al fees, and attorneys fees herein. HaL~+lE5 & GRAVEN, CHARTERED By Robert J. Lindall, #63277' Corrine Heine, #14973 470 Pillsbury Center Minneapolis, MN 554.02 (612) 337-9300 ATTORNEYS FAR PETTTIONEA HQU3ING AND REDEVELOPMENT AUTHORITY IN AND FCR THE CTTY OF RTCHFTELD 1995 Date of Execution Razsasa~ RGS2S~68 By , 1.995 Leland Frankman, # ~ Date of Execut.~on 1000 North Star East Y~ 608 Second Avenue South Minneapolis, MN 55Q0~ (612} 375-1600 ATTORNEY~FOR RESPONDENTS DONALD T. MAKI, individually and d/b/a CU'1'LER SMALL ANIMAL HQSPI'I'AL AND CLINIC AND JEANNZNE M. MAKZ ~ 1995 DONALD T. MAKI, individually Date of Execution and d/b/a CUTLER. SMALL ANIMAL H03PITAL AND CLINIC. 1995 JEANNINE M. MAKI, his wife ~~ Date of Execution HOUSING AND REDE'V'ELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD By' 1995 Date of Execution Its And -- -- r 1995 Date of Execution Tts x~s~easa~ ~C225-68 t~ Exhibit A pares! 7Abstract PID # 33-028-24-44-0028 - ~ - __ ''""' Desc~ript~.on of Property to„be Taken: _.__•..~ All that part. of the west 32.0 feet of the South 1/2 of the Southeast Quarter of the Southeast Quarter of Section 33, Township 2$, Range 24, except the North 34.5 feet thereof and except the parts thereof taken for highway purposes and except for Colfax Avenue South and Market Drive, according to the .United states Survey thereof, Hennepin County, .~innescta. Limitation on taki.n4• ,. ..._.- The taking of the abov®-described parcel. is stzb~ect to the rights of .the State cf Minnesota in certain access restrictions created. by Final C~:rtificates filed January 14, 1,958 as Document No. 3159249 and filed July 17,,1953 as Document No. 3417875. Name Nature of Int®reat James. H. Cutler Fo® Cwnet . Nancy 8. Cutler. Inchoate. inter®~st Donald T. Maki, individua23y Contract for Deed Purchaser and d/b/a Cutler Small Animal xospitai and Clinic Jeannine M. Maki Inchoate 3.nterest .Erskine Bowles, as ~ Mortgagee; ,Assign®® of Administrator of the Small Contract for Deed Business Administration, a United States agency Neegele outdoor Advertising, Possib~.e lessee Inc.. State of Minnesota Snow fence easement. City of Richfield Special assessments County of Hennepin Real estate taxis el~&87833 RCi25.68 ,i ` Form No.. R£•12•+WARRANTY OEED :viinncsots ~ Individualts} to lctdividua!(s} No delinquent taxes aizd transfer entered; Certificate Of Real Estate Value. ( }filed ( )not required Certificate of Real Estate Value No. ,1994 aunty Au itor by Deputy STAT}r DEED TAX DUE HEREON; S 1,534.50 Date; November 3, 1994 EXHtt3tT B POR VALUABI.Ir Cf)NSIDERATION, 3ames H.: Cutler and Nancy B. Cutler, husband and wife, Grantors, beret convey and warrant to Donatd T. Maki, Grantee,. real property in Hennepin County, Minnesota, described as follows "That pa.~t of the west 320 feet of the South Half of the Southeast Quarter of the Southeast Quarter of Section 33, Tawnshig 28, Range 24, lying southerly of the north 345 feet thereof subject to the easements far Interstate kiighway No. 444 as per Document No. 3417875, Hennepin County, Minnesota" and subject to easements, reservations and restrictions of record, if any. together with all. hereditaments and appurtenances belonging thereto, subject to the falbwing exceptions: Covenants, conditions; restrictions, declarations and easements of record, if any; Reservations of minerals or mineral rights by the State of Minnesota, if any; Building, zoning and subdivision laws and regulations; The }ien of real estate. taxes and installments of special assessments which are due and payable in 19$5 and ai subsequent years; Liens, encumbrances, adverse claims or other matters which Grantee has created, suffered, ar permitted to accru after the date of that certain Contract for Deed, by and between James H, Cutler and Nancy B. Cutler, Sellers and Donald T. Maki,. Purchaser, dated March I3, I985. ~ ~ ~,r` Affix Deed Tax Stamp Here times T~. Cutler ~ ,r ~ xan~y .cute ~. srA~r>r of ~ ' ) S5. C4U~ITY Q ) ~ . The foregvin; instrument was acknowledged before me tkiis _ _ ,~~ day of September, 199x, by Jarzxes H. Cutler and Nancy I3. Cutter, Grantors. )•tOTARLII. STAMP OR SEAL (OR OTHER TITLE OA RANK) a~~a cous~ woc~o 1i0TAR°P Ptli3i.IC~AiJFOF'WIA BAir 011:t3G COUtYT"t' iwtY C0~1irL DfP, oG7' 2<, 144¢ TrI15 L*tSTRUyII:.*R WAS DRAF'I'1:D 13Y (NAME Air'A ADDRESS): FAEGRi~ & BENSON (CE3) 220(} Narwest Center 90 South Seventh Street Minneapolis, MN 55402-3901 Phone: C 12-335-3400 ltRROCtED.wPS arON~T4'tt8 OF PERSON TAKlNC ACiCNOWt.BaG1~.~Yt' Tae Statrmeatt fot the real property described is this iaEtrumeat should ha scat to (laclude acme sod tddte=s of Graatea): Dr, Donald T. -Maki Rurai Route 3 Box 537A Mora, MN X5051 • _ ~TAT~.ENT EL'L tiT~'C'~aF~ £~g~D ~EN~~~ ap ~o~T'p-ACT xn©W o~ anY Wel~~ . e Grantoe ~~~~ ~ot th fee o~r~~~ eai pr p~,~~Y ,~~~ G7C~ri ib~d r ~~~ tit ° d T , Max ~Qn$1 ~»s~~ccZ.wP~ CJlAlpll C ' B~AS~ aF.REAL ESTATE MOkTG KNOW ALL MEN 13Y'THESE PRESENTS, that SMALL BUSINESS ADM~NISTRATIOH, a~ Agency created by an Act of Congress, as amended, with its principal office in Washington, D. C., and a District Office in the City of Minneapolis, Minnesota, and whose -post oPfioe address is Mi~neapalis, Minnesota, doss hereby certify that a certain Indenture of Mortgage bearing. the date of i the l9th day~of October, x987, made and executed by Donald T. Maki and Jear~nfne M. Maki, husband and wife as Mortgagors, to Administrator of the Sma11.8usiness Administration, an Agency of the. Government Qf 'the United States of America as Mortgagee, .filed i.n the office of the County Recorder in and for the County of Hennepin, State of Minnesota, on the i~th day. of November, 1987, as Document No. 8346~,55,`is, with the indebtedness secured thereby, released and satisfied, and the said County Recorder is hereby authorised and directed to discharge the same upon his records thereof, according to the statute in such case made and provided. - IN TESTIMONY WIiEREOF, the Administrator of the Small Business Administration has. caused the$e presents to be executed in its name by Melvin 8. Aanerud, Chief, Portfolio Management Division of the Minneapolis.District Office, this Z9th day of ..December, 1994. ADMTNTSTRATOR OF THE SMALL BUSII~IESS ADMINISTRATION B Melvin Aanerud, Ch~.ef Portfolio. Management Division • e STATE OF MINNESOTA j jS5 COUNTY OF ANOKA ) On the °„w,,,, day of ~P~,..pil~t%~2~4i ..... , 29 Q~ ~ _, before me, a Notary Public w~.thin and for said County and state, personally appeared Melv~.n ~. Aanerud to me known to be the person who executed the foregoing instrument on behalf of the small Business Adm~.nistration, who, being by me duly, sworn, Bid say that he is chief, Portfalia Management of the Minneapolis District Office of the Small Business Administration, that said instrument was executed an behalf of the Small Business Administration pursuant to the authority contained in 23 C. F. R. 101.32, and said Melvin B. Aanerud acknowledged said instrument t.o be his free and voluntary act and deed. ~..~a 1~.. c~u.~c-E ~' ~••:•-•• GA~"HAFt#N~ A. }4Nl1TSON ~ ' ~~: ~, ~ NOYARY PUeLtG - M"~" • ~~i, ANO!{A CCl:~ `w M1y Commis6iQn ExPUEB Jew~• . ~ ~++.- ,~•:~,::,.• CAT'HARINE A. KNElT$ON ~ ~~ ~ NQTARYPUBLIC-MIkNHSOTA ~.~r•~ ANO-CA COUNTY ~`' ~ My Cammissbn Expir6l dear, 27, t@45 Notary Public, Anoka ota My Co3Rmiss~.on Expxzes ~ ra ~ "~f THIS INSTRUMENT WAS DRAFTED 8Y: Small 8usfness Administration 20o North Sixth-street Minneap©Iis, Minnesota 5540 HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 16 Agenda February 28, 1995 Issue Statement: Consideration of a legislative proposal to enable, the HRA to establish property holding nonprofit corporations. Background: A major apartment owner [or The Sage Company of Minnetonka] .has proposed a gift to the HRA of three apartment complexes. The existing FHA insured mortgages would be assumed by the HRA. The maintenance reserve fund required by FHA would be purchased. All costs would be supported by the rent income stream. Before presenting this proposal to the HRA for formal discussion, staff has been identifying obstacles to the proposed transaction. A desirable course of action would be to assume the existing mortgages. However, FHA rules require each of the three separate. mortgages to be in the name of an organization with but one single asset. Current state law prohibits the HRA from establishing three separate organizational entitles which could each own one of the apartment complexes. The proposed special legislation would make it possible for the HRA to form three separate nonprofit corporations. The HRA would comprise the membership of the board of directors of each corporation: An alternate method of accepting the gift would require the selling of bonds to raise revenue to pay off the existing mortgages and retire the bonds from rent revenue. The bank holding the mortgages, however, would have to agree to an early payoff and a penalty payment may be required. Recommended Motion: Approve the submission of the proposed legislation and authorize staff to seek its enactment. Basis of Recommendation: 1. The current proposal does not warrant consideration unless state law is modified or the mortgage lenders are willing to negotiate an early payoff of the mortgages. 2. The most efficient and effective use of resources would be the enactment of special legislation. 3. The time available for introduction of legislation is short 4. If either or both of the options related to financing the mortgage debt. become available then it would be appropriate for the HRA to engage in a full discussion of this proposed transaction. . Alternative Recommendation: 1. Delay consideration. 2. Reject the proposed legislation 3. Reject the proposed gift. Discussion/Decision Mode: The time for introduction of legislation is short.. Respectf y submitted, Jam D. Prosser Executive Director JDP:cak y y F E13 21 ' 95 14 ~ 15 HULMFS ~ GRFi~JEN P 1 A bill for an act 2 relating to the hauling and redevelopment authority in end for the 3 city of Richfield; authorizing the formation of xxonprafit corporations 4 for tho purpose of awning low anct moderate income housixxg 5 developmentg . 6 EE IT ENACTED BY TIE LEGISLATURE Ql~ THE STATE (aF MXNNESOTA: 7 Section 1. [F(]RMATTUN o~ NQNPROFiT C4RPORATIQNS. ~ 8 The housing and redevelopment suthori~ in and for_the city of Richfield is 9 authorized to form or' consent to the formation of one or.more corporations under 10 the Minnesota nonprofit oor~oration act, as amended, for the purpose of owning 1i and o~er$tin~ housing developments financed with mort~a~es i~isured by the I2 federal housing administration of the United States department of housing and 13 urban develapmetxt, to be occupied by law and moderate income nergaxts and lE4 families . 1S See. 2. jCONTROL B'Y AU'THC)RIT"Y. ] 1 ~ The authorit r~should be a member, ~f each corporation , and the members of 17 the board of directors of each corporation shall be members or em»loyees of the 18 authors v. The authority may enter into a~,xeements with a corporation ~roviditi~ lE9 far the authority to anlarove various aspects of its operations.. The authority mar 2U capitalize the cprporations ,and ma~gctire all or a part of the co,~r orations' share 21 or member certificates. Tha authority ~ghall be required to a~anrove the 22 corporations' articles of incort~oration axed bylawg, directors, pro~eots and 23 expenditures. and the sale or conveyance of nroiects, and the issuance of 24 obli~atians . The authority shall take title to property of the corporations. ut~an 25 their dissolution. 2fi See. 3. [ISSUANCE OF BANDS. j 27 Tlae~ nonprofit corporations authorized'to be formed under ~seetian f may 28 issue bonds for the purx~ose of finaneins: the acquisition and operation of - 29 multifami~ housing developments, in furtherance of the public purpose of 3U »rovision of low and moderate income housing, which bonds shall beta gable 31. solely from the revenues of such dev~ monts and shall be~issued upon suafi 32 terms as the eornaration sha11 determine ~ with the consent of the authori.~.. 33 Sec. 4. [PROPER'TY TAX E~Fl~l.1~'TIt3N. ~ 34 Pr~pert~- owned by a notx~arafit corporation authorized to_ba formed under s5 section 1 shall be treated as ublic property exclusively used for a public 3Q gur~pase under Minnesota Statutes, section 272.Q2, subdivision 1. eN684a91 AC235-7~ 1 FEB 21 'S5 14:16 HOLIES ~ GRAVEN y r' . u 1 Sae. 5. [EFFECTIVE DATE. ] 2 Sections 1 through ~ are e£feative the day after compliance with Minnesota j $ Statutes, section 645.021, subdivision 3_,3bv the city council of the city oP ! 4 Richfield. i HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 15 Agenda February 28, 1995 Issue Statement: Approval of a contract with Mr. John Szarke to formulate "Together We Can," an apartment resident self-sufficiency program. Background: Approximately 18 months ago, the HRA initiated the Community Apartment Program (CAP). One of the reasons the program was initiated was to devise new and imaginative strategies for addressing the changing demographics of the apartment residents. Simply stated, the traditional apartment resident often lived. independently and was upward bound on the social-economic ladder. Today's residents are often unable to take advantage of opportunities due to insufficient education, unemployment, underemployment, daycare issues and single parent issues. During the first year of CAP, a .primary focus was organizing the apartment owners and managers. The result of these efforts was the creation of RAMA. One of the opportunities which -.has been identified for managers is that they could play a role in identifying apartment residents with needs and refer these residents to available services for support. In a separate but related context, the Department of Housing and Urban Development (HUD) is urging Section 8 program administering organizations to formulate and implement what they have labeled Family Self-Sufficiency Programs. The title very aptly captures the need and opportunity. . And in a third arena, the Richfield Human Services Planning Council has expressed an interest in having the HRA formulate aself-sufficiency program. The Planning Council is chaired by Camillo DeSantis and Commissioner Joan Helmberger is a member. With the convergence of these three factors, it is appropriate to formulate an apartment resident self-sufficiency program.. Such a program is most effective when it reflects the unique characteristics and needs of a community. To formulate a program, staff would need help from an outside person. With that in mind, a search was initiated for a person who could lead in the formulation of such a program. We were seeking a person with qualities which would make it likely that an imaginative program would be formulated. Some of those qualities were as follows: • Proven leadership; someone who could instill enthusiasm in people and get them to respond in a supportive way. • Ability to interact sensitively and successfully with people from diverse social, economic cultural and racial backgrounds including potential program users, policy makers, staff and peers. • Ability to interact with the business community and foundations/service organizations. • A creative person who is capable of formulating an imaginative program which strays from the "tried and true." • Aself-starter who can work independently. Mr. John Szarke has these qualifications. Staff has met with him on several occasions and believes he is capable of formulating a program (his resume is attached). John would be charged during the next six months with formulating "Together We Can" a self-sufficiency program completing the assignment about September 1, 1995.. He would work on a contract basis not to exceed $40,000 billing at the rate of $40 per hour. A work program is attached to the contract as Exhibit A. Recommended Motion: Authorize the chair and executive director to execute the attached contract with Mr. John Szarke. Basis of Recommendation: 1. The .results of CAP indicate there is a need for aself-sufficiency program. 2. HUD is urging that self-sufficiency programs be initiated. 3. The Human Services Planning Council has identified a need for aself-sufficiency program. 4. A person qualified to formulate such a program has been identified. 5. Sufficient funding exists in the Section 8 fund balance. Alternative Recommendation: 1. Reject the proposal 2. Delay consideration of the proposal. Discussion/Decision Mode: The desire is to .complete program formulation by August to coincide with consideration by the HRA of the annual CAP contract. fitted, JDP:ds PROFESSIONAL SERVICE- AGREEMENT MR. JOHN SZARKE THIS AGREEMENT made and entered into by and between the Housing and Redevelopment Authority fn and for the City of Richfield, .STATE OF MINNESOTA, hereinafter referred to as the HRA, and John Szarke, Eden Prairie, MN hereinafter referred to as Szarke. WITNESSETH: WHEREAS, the HRA wishes to purchase the services of Szarke; and WHEREAS, there are funds available for the purchase of these services. NOW, .THEREFORE, in consideration of the mutual undertakings and agreements hereinafter set forth, the HRA and Szarke agree as follows: 1. TERMS AND COST OF THE AGREEMENT Szarke agrees to furnish services to the HRA as indicated on the attached Exhibit A dated February 28, 1995. The total cost. of this Agreement shall not exceed $40,000 with billing at $40 per hour. All reports, memos, and other data produced by Szarke become the property of the HRA. 2. PAYMENT FOR SERVICES Invoices may be submitted monthly.. Payment for services shall be made directly to Szarke by check. Invoices shall be of sufficient detail for the HRA to determine the activity and personnel for which payment is being made. Payment shall be made within 30 days of receipt of an invoice by the HRA. 3. INDEPENDENT CONTRACTOR Szarke shall select the means, method, and manner of performing the services herein in consultation with the HRA. Nothing is intended or should be construed in any manner as creating or establishing the relationship of copartners between Szarke and the HRA or as constituting Szarke as the agent, representative; or employee of the HRA for any purpose or in any manner whatsoever. Szarke is to be and shall remain an independent contractor with respect to all services performed under this Agreement. Szarke represents that he has or will secure at his own expense all personnel required in pertorming services under this Agreement. Any and all personnel of Szarke or other persons while engaged in the performance of any work or services required by this. Agreement shall have no contractual relationship with the HRA, and shall not be considered employees of the HRA. Any and all claims that mayor might arise under the. Unemployment Compensation Act or the Workers' Compensation Act of the State of Minnesota on behalf of said personnel, arising out of employment or a((eged employment, including, without limitation, claims of discrimination against Szarke, its officers, agents, contractors, or employees shall in no way be the responsibility of the- HRA. Szarke shall defend, indemnify, and hold the HRA, its officers, agents, and employees harmless from any and all such claims irrespective of any determination of any pertinent tribunal, agency, board, commission, or court. Such personnel or other persons shall neither require nor be entitled to any compensation, rights, or benefits of any kind whatsoever from the HRA, including, without limitation, tenure rights,, medical and hospital care, sick and vacation leave, Workers' Compensation, Unemployment Insurance, disability, severance- pay, and PERA. 4. NONDISCRIMINATION The HRA operates in accordance with the City of Richfield's policies against discrimination. No person shall be excluded-from or denied the benefits of any service performance or contemplated under the terms of this Agreement on the grounds of race,.color, creed, religion, age, sex, disability, marital status, public assistance status, ex-offender status, or national origin; and no person who is .protected by applicable Federal or State laws against discrimination shall be otherwise subjected to discrimination. Szarke shall (1) furnish all information and reports which may be required by the City's Affirmative Action Policy, and (2) it shall comply with the City's Equa! Employment Opportunity/Affirmative Action Policies with regard to employment and contracting if anyone is hired by Szarke. 5. INDEMNITY AND INSURANCE Szarke agrees to defend, indemnify, and hold the HRA, its officers, and employees harness from any liability claims, damages, costs, judgments, or expenses, including reasonable attorney, fees, resulting directly or indirectly from an act or omission (including without limitation professional errors or omissions) of Szarke, it agents, employees, or assignees in performance of the services provided by this contract, and against all loss by reason of the failure of Szarke to fully pertorm in any respect, all obligations under this contract. 6. DATA PRIVACY Szarke agrees to abide by ail applicable State and Federal laws and regulations concerning the handling and disclosure of private and confidential information concerning individuals and/or data including but not limited to information made non-public by such laws or regulations. 7. RECORDS -AVAILABILITY Szarke agrees-that the HRA, the State Auditor, or any of their duly authorized representatives at any time during normal business hours and as often as they may reasonably deem necessary, shall have access to and the right to examine, audit, excerpt, and transcribe-any books, documents, papers, records, etc., which are pertinent to the accounting practices and procedures of Szarke and involve transactions relating to this Agreement. Records shall be retained for three years from date of final payment with respect to the project. 8. NON-ASSIGNMENT Szarke shall not assign, subcontract, transfer, or pledge this contract and/or the services to be performed hereunder, whether in whole or in part, without the prior written consent of the HRA. 9. MERGER AND MODIFICATION a. It is understood and agreed that the entire Agreement between the parties is contained herein and that Agreement- supersedes all oral agreements and negotiations between the parties relating to the .subject matter hereof. All items referred to in this Agreement are incorporated or attached and are deemed to be part of this Agreement. b. Any material alterations, variations, modifications, or waivers of provisions of this Agreement shall only be valid when they have been reduced to writing as an amendment to this Agreement signed by the parties hereto. 1.0. DEFAULT AND CANCELLATION a. if Szarke fails to perform any of the provisions of this Agreement or so fails to administer the work as to endanger the performance of the Agreement, this shall constitute a default. Unless the default is excused, the HRA, may upon written notice, immediately cancel the Agreement in its entirety. b. The HRA's failure to insist upon strict performance of any provision or to exercise any right under this Agreement shall not be deemed a relinquishment or waiver of the same, unless consented to in writing. Such consent shall not constitute a general waiver or relinquishment throughout the entire term of the Agreement. c. This Agreement may be canceled with our without cause by either party upon twenty (20) days written notice. 11. CONTRACT ADMINISTRATION In order to coordinate the service of Szarke with the activities of the HRA so as to accomplish the purposes of this contract, Bruce Palmborg shall manage this contract on behalf of the HRA. In addition, from time to time, meetings shall be held between Szarke and HRA staff. Szarke may also report directly to the HRA Board of Commissioners. 12. NOTICES Any notice or demand which must be given or made by a parry hereto under the terms of this Agreement shall be in writing. Notices shall be sent as follows: To the HRA; Bruce Palmborg, Housing and Redevelopment Coordinator City Hall 6700 Portland Avenue South Richfield, MN 55423 To Szarke;. John Szarke 15157 Lesley Lame Eden Prairie, MN 55346 Szarke having signed this contract, and the HRA having duly approved this contract on , 1995, and pursuant to such approval and the proper HRA officials having signed this contract, the parties hereto agree to be bound by the provisions herein set forth. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE. CITY OF RICHFIELD STATE OF MINNESOTA ey: Executive Director By: Chairperson By: Its Attest Attest Attest EXHIBIT A 02/28/95 Richfield's HRA "Together We Can" Project Vision Statement Together, as individuals, agencies, and institutions we can listen and learn from one another as we work together to meet specific needs and develop and share our skills. Together, we can strengthen our community by uniting our efforts and believing that ... "together we can". "Together We Can" Pilot Program Richfield's HRA wants to .initiate a "Pilot Program" to promote community building while better meeting the needs of all apartment residents * To further these efforts, the following steps have been devised to formalize recommendations: Program Formulation. 1. Information gathering. a. Initial gathering of general data: demographics of targeted area. b. Input from South Hennepin Planning Agency, Northwest Hennepin Planning Agency, Richfield Health Commissions, Richfield Human Service Planning Council, R.A.M.A., Search Institute, and Project For Pride In Living. c. Input from apartment residents. d. Input from appropriate Hennepin County, state and national professionals. e. Familiarization with pertinent written materials. 2. Analyze and synthesize information gathered. 3. Amid-point report will be provided to the HRA. 4. Pinpoint resources that could benefit apartment residents. 5. Dialogue with appropriate groups and individuals to obtain their feedback about potential programs and linking resources. 6. By August, 1995 present action plans and recommendations for implementation. a. Develop mission statement. b. Develop goals, strategies; action steps; and evaluation methods. * Application of this program for the entire Richfield Community will be given consideration in the. future. John Szarke - 15157 Lesley Lane Eden Prairie, MN 55346 (612) 975-9752 QUALIFICATION SUMMARY • Fourteen years management experience, including leading, hiring; program planning, evaluating, budgeting, fundraising, recruiting and. training volunteers... • Recruited and trained 60 volunteers for $750,000 capital campaign to restore an 1875-church. • Responsible for raising and overseeing an $650,000 annual budget. • Excellent interpersonal skills. • Energetic, creative, and collaborative work style. • Excellent oral and written communication skills. • BA in English; Masters of Divinity; Masters in Christian Spirituality. EXPERIENCE 1993 to Present Metropolitan Area Transit - (Interim Employment) • Provide medical transportation for the elderly and for people with physical disabilities. 1990 -1992 St. Michael's Church, Stillwater • Responsible for overall programs for 1600 families. • Hired, supervised, and evaluated staff. • Responsible for raising and overseeing a $650,000 annual budget. Recruited volunteers to assist in the planning, fundraising and execution of a $750,000 restoration of an 1875 historical church. • Chaired and spearheaded restoration project. • Initiated and collaboratively developed goals and actions plans for committees, volunteers, and staff. _ • Appointed leader of an education program serving 1200 students. • Established a Development Committee for education. • Initiated and created endowments generating $400,000. • Worked effectively with staff, boards, trustees and volunteers. JOHN SZARKE ' Page 2 1985 -1990 Formation Advisor School of Divinity of the University of Saint Thomas • Served as advisor to twenty theology graduate students pursuing educational and personal growth: • Collaboratively designed and presented human growth workshops. (20 -70 participants) • Evaluated forty-five students annually. • Initiated and developed a scholarship fund. • Assisted the Development Office with Capital Campaign solicitations. • Served on Executive Committee for 3 years. 1979 -1985 Associate Pastor Our Lady of the Lake, Mound Annunciation, Minneapolis • Provided leadership for committees. • Supervised staff. • Recruited, trained, and supervised volunteers. • Served pastoral needs. EDUCATION Creighton University, Omaha, NE Masters in Christian Spirituality, 1987 School of Divinity, of the University of St. Thomas, St. Paul, MN Masters of Divinity, 1979 University of St. Thomas, St. Paul, MN BA English, 1971 REFERENCES Available upon request HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 14 Agenda February 28, 1995 Issue Statement: Public hearing and consideration of resolution to continue Section 8 Program local preference criteria and to make nonsubstantive changes in the administration-plan. Background: The HRA's Section 8 program is administered by the Executive Director in accordance with an administrative. plan.. The 34 page plan, adopted by the HRA in 1988, has been amended in 1991 and again in 1993 to stay current with changes in HUD regulations. No policy changes occur as a result of the proposed amendments. The changes only clarify or modify HUD procedures which the HRA must follow. One change in regulation requires the HRA to hold a public hearing before it can continue having "local preference" policies in selecting program participants. Applicants are, chosen .from the HRA's waiting list based on a set of federal and local preferences. Federal preferences include applicants who are displaced (homeless), and/or are living in substandard housing, and/or are paying 50% or more of household income for rent. A local preference is applied to applicants who live or work in Richfield.. Federal preferences must take precedence, but applicants having both a federal and local preference have been served first. HUD regulations now require that in order to continue giving a local preference, HRA's must provide for a public hearing which is scheduled for this meeting. Recommended Motion: 1. Authorize staff~to continue applying a local preference in conjunction with mandatory federal preferences when selecting applicants for rental assistance. 2. Authorize staff to complete nonsubstantive changes to the Section 8 Administrative Plan. A summary of -the changes is attached to this letter. Basis of Recommendation: 1. Because Richfield is a desirable area in terms of accessibility, schools, public transportation, and general reputation, non-Richfield residents apply to our waiting list. 2. Continuing to apply a local preference allows-the HRA to assist applicants who live .and/or work in Richfield first.. 3. If no local preference policy is continued, applicants who live and/or work in Richfield could wait a much longer time for assistance. 4. A public hearing is required to continue local preferences. The notice of public hearing was properly published. 5. The administrative plan will not remain current with HUD regulations if changes are not made. Alternative Recommendation: Do not approve the continuance of a -local preference. Richfield residents would be placed on the waiting list using only federal preferences and time of application as criteria. Discussion/Decision Mode: Staff would continue to immediately select from the waiting list based on the local preference. An updated copy of the administrative plan is included for the HRA's records, Re t Ily submitted, Jam D. Prosser Exec ive Director JDP:ds Attachment RESOLUTION NO. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA RESOLUTION RELATING TO A LOCAL PREFERENCE POLICY FOR SELECTION OF APPLICANTS TO SECTION 8 RENTAL ASSISTANCE PROGRAM AND MAKING NONSUBSTANTIVE CHANGES TO THE ADMINISTRATIVE PLAN WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield (HRA) administers a HUD Section 8 Rental Assistance Program in accordance with an administrative plan; and- WHEREAS, changes in HUD regulation requires that the administrative plan be amended; and WHEREAS, HUD has approved the use of a local preference provided a public hearing is held; and WHEREAS, the use of a local preference policy in the Section 8 waiting list selection process better serves Richfield. residents; and WHEREAS, a public hearing was scheduled for. February 28, 1995 to review the HRA's local preference policy and other nonsubstantive changes to the administrative plan. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the -City of Richfield, Minnesota 1) following a public hearing, the continued use of a local preference in the selection of applicants from the Section 8 waiting list is approved. 2) Regulatory changes to our administrative plan may be made to stay current with HUD regulations. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 28th day of February, 1995. Thomas E. Harms, Chair ATTEST: Vern Luettinger, Secretary Attachment A A summary of changes to Administrative Plan for 1995 Page 2: "Household Eligibility" • now includes single persons Pages 6 & 7: "Items not Considered Income" • now includes (under "d") Title. IV funds (college) and awards for Federal Work Study Work program and 16, 17 and 18 are new Pa a 9: "Involuntarily Displaced" (one of the 3 Federal Preferences) • under #1, hate crimes (last sentence) is new and #4 has been added Page 12: "Local Preferences" • the "Working in Richfield" has been qualified to read they must have been working here at least 90 days Page 15: "Grounds for Denial or Term. of Asst" • the last 3 bullets were added "past performance, record of disturbance, and criminal history ADMINISTRATIVE PLAN Housing and Redevelopment Authority in and for the City of Richfield (Revised December, .1.994) Section 8 Existing Rent Assistance Certificate and Voucher Program A Program Funded by The Department of Housing and Urban Development (HUD) A. STATEMENT OF OVERALL APPROACH The affordable rental housing needs of present and future Richfield residents are currently being met by four allocations of existing housing voucher program contracts and budget authorities. These allocations allow for a total of 230 units. Two units are set aside to assist homeless situations. Eligibility~for these. homeless Vouchers shall be determined according to federal and local preference categories. When one of these Vouchers has been issued to a homeless participant, this Voucher will be retained by that participant for the duration of their participation in the Section 8 Program. If the participant becomes ineligible, or voluntarily relinquishes the Voucher, it shall be reissued to the next eligib a homeless family on the waiting list. At specified times, Richfield HRA will accept applications from area. agencies who seek transitional housing for families who would otherwise be homeless. In the event there- should be no eligible families on our waiting list, the Voucher will become part of the PHA's regular allocation. If a homeless applicant is referred to the PHA at any time after the Voucher has become part of the PHA's regular allocation, the PHA shall over issue a Voucher to accommodate this homeless family. Current program participants, including those serviced under portability in Richfield, now number 377. B. Plans for the Administration of Program Functions 1. Outreach to Families and Contact with Owners The Richfield HRA will adhere to the Equal Opportunity Housing Plan (EOHP) in its outreach efforts. 1 Richfield HRA accepted applications for the Section, 8 program in February, 1994, when 450 applications were accepted. Approximately 310 of those remain on the waiting list after a recent purge. A majority of those applying desire to live in Richfield. Those applicants having afederal preference wilt be serviced first. A local preference is given to those who live or work in Richfield, but do not have a Federal Preference. Top priority is given those with both a federal and a local preference. Marketing initiatives are outlined in the EHOP, and it was obvious by the large number of applications received, that this effort appeared very successful. No applica#ions will be accepted in 1995 with the recent merger of all :bedroom sizes to one waiting list. Approximately 90% of these applicants have a federal preference and it would be illogical to accept more applications at this time. Efforts to encourage owner participation are outlined in the EOHP. Persona! contacts and general information sessions with owners by staff also encourage a good working relationship. 2. Completion of Applications, Determination of Eli4ibility and Selection of Families Because of the abundance of eligible households on our waiting list, applications will be taken on a periodic basis rather than continuously. Advertisement of the Section 8 Program will be consistent with procedures outlined in the EOHP. Apre-application-will be mailed to interested households for completion, along with relevant program information. Returned applications are dated and numbered in the order they-are received to assure a first come -first served priority. This order will only be relevant after federal and local preferences are applied. Households will be qualified according to the following: A) Household Eligibility F_ amity: A single person or group of persons, or two or more persons sharing residency whose income and resources are available to meet the family's needs and who are either related by blood, marriage, or operation of law, or have evidenced. a stable family relationship. Expectant mothers also qualify in this category. Elderly Family: A family whose head or spouse-or whose sole member is at least sixty-two years of age, or a disabled person, or a handicapped person, and may include two or more elderly, disabled or handicapped persons living together, or one or more such persons living with another person who is determined to be essential to his or her care and well being. 2 Displaced Person: A person displaced by governmental action or a person whose dwelling .has been extensively damaged or destroyed as a result of a disaster declared or otherwise formally recognized under federal disaster relief laws. This also includes persons who have been forced to vacate due to domestic violence, to avoid reprisals for providing information to a law enforcement agency about criminal activities, or to avoid subjection of hate crimes. Handicapped Person: One who has a physical or mental impairment which is expected to be of long-continued and indefinite duration, substantially impeding his or her ability to live independently, and is of such a nature that such ability could be improved by more suitable housing conditions. Disabled Person: A person shall be considered disabled if such person is under a disability as defined in Section 223 of the Social Security Act (42 U.S.C. 423} or in Section 102 (b) (5) of the Developmental Disabilities Services and Facilities Construction Amendment of 1970 (42 U.S.C. 2691 (1)). Section 223 of the Social Security Act defines disability as: (A) .inability to engage in any substantial gainful activity. by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months; or (B) in the case of an individual who has attained the age of 55 and is blind (within the meaning of "blindness" as defined in.Section 416 (i) (1) of this title), inability by reason of such blindness to engage in substantial gainful activity requiring skills or abilities comparable to those of any gainful activity in which. he has previously engaged with some regularity and over a substantial period of time. Section 102(b)(5) of the Developmental Disabilities Services and Facilities Construction Amendments of 1970 defines disability as: A severe, chronic disability of a person which: - is attributable to a mental or physical impairment or combination of mental and physical impairments, - is manifested before the person attains age twenty-two, - is likely to continue indefinitely, - results in substantial functional limitations in three (i) self-care (ii) receptive and expressive language, (iii) learning, (iv) mobility, (v) self- direction, (vi) capacity for independent living, and (vii) economic self sufficiency; and -reflects the person's need for a combination and sequence of special, interdisciplinary, or generic care, treatment, or other services which are of lifelong or extended duration and are individually planned and coordinated. Dependent: A member of the Family (excluding foster children) other than the family head or spouse, who is under 18 years of age or is a disabled or handicapped person, or full-time student. Full Time S#udent: One who is carrying a subject load that. is considered full- time for day studentsunder the standards and practices of the educational institution attended. An educational institution includes a vocational school with a diploma or certificate program, as well as an institution offering a coNege degree. B) Income Eligibility Income limits for eligibility are those amounts currently established by HUD for the Richfield HRA area of jurisdiction. Items Considered As Income. Annual income is the anticipated total income from all sources received by the family head (even if temporarily absent) and by each additional family member, including all net income derived. from assets, for the 12 month period following the effective date of initial determination or re-examination of income, exclusive of income that is temporary, non-recurring or sporadic as defined in paragraph 2, and exclusive of certain other types of income specified in paragraph. 2, (h) of this section. a. The full amount before any payroll deductions of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services; b. The .net income from the operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deduction in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight line depreciation as provided in Internal Revenue Service Regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family. 4 c. Interest, dividends, and other net income of any kind from real or personal property. Expenditures for amortization of capital indebtedness shall not be used as a deduction in determining net income. An allowance for depreciation is permitted only as authorized in paragraph B. of this section. Any withdrawal of cash or assets from. an investment will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested by the family. Where the family. has Net Family Assets in excess of $5,000, Annual Income shall include the greater of the actual income derived from all Net Family Assets or a percentage of the value of such assets based on the current passbook savings rate, as determined by HUD. ' d. -The full amount ofperiodic-payments received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits and other similar types of periodic receipts, including alump-sum payment for the delayed start of a periodic payment; e. Payments in lieu of earnings, such as unemployment and disability compensation, workmen's compensation and severance pay; f. Welfare Assistance. If the. welfare assistance payment includes an amount specifically designated for shelter and utilities that is subject to adjustment by the Welfare Assistance Agency in accordance with the actual cost of shelter and utilities., the amount of Welfare Assistance income to be included as income shall consist of: 1) the amount. of the allowance or grant exclusive of the amount specifically designated for shelter and utilities, plus 2) the maximum amount which the Welfare Assistance Agency could in .fact allow the Family for shelter and utilities. If the Family's Welfare Assistance is ratably reduced from the standard of need by applying a percentage, the amount calculated under this item shall be the amount resulting from one application of the percentage; g. Periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from persons not residing in the dwelling; h. All regular pay, special pay and allowances of a member of the Armed Forces. i. Any earned income tax credit to the extent it exceeds income tax liability. 2. Items Not Considered as Income a. Temporary, non-recurring, or sporadic income (including gifts); b. Amounts received by the family which are specifically for or in reimbursement of the cost of medical expenses for any family member; c. Lump-sum additions to Family assets such as inheritances, insurance payments (including payments under health and accident insurance, and worker.'s compensation) capital gains and settlement for personal or property losses excluding items listed in 1 e. of this Section; d. Amounts of educational scholarships paid directly to the student or to the educational institution, and amounts. paid by the Government to a veteran for use. in meeting the cost of tuition, books, fees and equipment. Student loans are not considered income. Any amounts of such scholarships, or payments to veterans, not used for the above purposes and are available for subsistence are to be included in income. Also amounts funded under Title IV of the higher education act of 1965, including awards under the Federal Work Study Work Program or under the Bureau of Indian Affairs student assistance programs are not considered income. e. The special pay to a family member serving in the Armed Forces who is exposed to hostile fire; Income from employment of children, including foster children, under the age of 18 years;. g.. Payments received for the care of foster children; or any monies received as payment for the provision of child care as specified under the Child Care and Development Block Grant Act. of 1990; h. Amounts specifically excluded by any other Federal statute from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance, under the 1937 Act. The following types of income subject to such exclusion: 1) Relocation payments made under Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. [42 U.S.C. 4636] 2) The value of the allotment provided to an eligible household under the Food Stamp Act of 1977; [7 U.S.C. 2017 (b)] 6 3) Payments to Volunteers under the Domestic Volunteer Service Act of 1973; [42 U.S.C. 5044 (g), 5058] 4) Payments received under the Alaska Native Claims Settlement Act; [43 U.S.C. 1626 (a)] 5) Income derived from. certain submarginal land of the United States that is held. in trust for certain Indian tribes; [25 U.S.C. 495 (e)] 6) Payments or allowances made under the Department of Health and Human Services Low Income Home Energy Assistance Program; [42 U.S.C. 8624 (f)J 7) Payments received under programs funded in whole or in part under the Job Training Partnership Act; [29 U.S.C. 1552 (b)J 8} Income derived from the disposition of funds of the Grand River Band of Ottawa Indians; [Pub. t. 94-540, 90 Stat. 2503-04]; 9) The. first $2,000.00 of per capita shares received from judgment funds awarded by the Indian Claims Commission or the Court of Claims [25 U.S.C. 1407-08] or from funds held in trust for an Indian tribe by the Secretary of Interior. [25 U.S.C. 117 (b)-1407] 10) Amounts of scholarships funded under Title IV of the Higher Education Act of 1965, including awards under the Federal work-study program, or scholarships funded under the Bureau of Indian Affairs student Assistance programs, that are .made. available to cover the cost of tuition, fees, books, equipment, materials, supplies, transportation, and miscellaneous personal expenses of a student at an educational institution. [20 U.S.C. 1087 uu] 11) Payments received from programs-funded under Title V of the Older American Act of 1965 [42 U.S.C. 3056 (F)}: (and) 12) Payments received after January 1, 1989 from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in the In-Re-Agent Orange Product Liability litigation, M.D.L. No. 381 (E.D.N.Y.) 13) Entire amount of Earned Income Tax Credit. 14) Funeral or burial trust interest on an amount up to $2,000 or any amounts prepaid for burial costs/goods. 15) Any monies earned as an official census taker. 16) For all initial and reexaminations of income carried out on or after April 23, 1993, reparation payments paid by a Foreign Government pursuant to claims filed under the Laws of that Government by • persons who were persecuted during the Nazi Era; 17) (a) Amounts received under training programs funded by HUD; (b) Amounts received by a Disabled person that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set aside for use under a Plan to Attain Self-Sufficiency (PASS); or (c) Amounts received by a participant in other publicly assisted programs which are specifically for or in reimbursement of out- of-pocket expenses incurred (special equipment, clothing,: transportation, child care, etc.) and which are made solely to allow participation in a specific program; 18) The value of the allotment provided to an .eligible household under the Food Stamp Act of 1977 [7 U.S.C. 2017. (b)j. C) Ineligible Households Households determined to be ineligible will receive a written notice of the determination and state that they may request an informal review of the decision within 30 days. This procedure will be conducted according to an informal review and hearing procedure provided as an attachment to this administrative plan. D) Household Selection . The same waiting list will be used for both voucher and certificate selection.. At the time of selection, applicants will be told what type of assistance is available. Applicants will not be penalized if they refuse one type of assistance to wait for another (i.e., Certificate versus voucher). If, however, the applicant refuses the second form of assistance when it is offered, their application will be taken off the waiting list. They are eligible to re-apply~when applications are taken again. Households selected to receive a certificate or voucher shall be notified immediately by letter stating that determination and requesting a response within ten days. Applicants who do not respond within ten days shall be notified by letter stating the cancellation of their application. The Richfield HRA will select applications for assistance based on current regulations for the Section 8 Existing Housing Certificate and Voucher Programs, established by the Department of Housing and Urban Development. Federal and local preferences will also apply. 10% of selected applicants may be those without a federal preference. E) Preference For New Applicants Eligible applicants are placed on the waiting list in the following order: 1) Those having one or more federal preference and a local preference, based on date and time of application. 2) Those having one or more federal preference only,: based on date and time . of application. 3) Those having a local preference only, based on date and time of application. 4), Those with no preference, based on date and time of application. 1. Federal preferences are:. -involuntary displacement; an applicant who is or will be involuntarily displaced if the applicant has vacated or will have to vacate his or her housing unit as a result of one or more of the following actions: a) a disaster, such as a fire or flood, that results in the uninhabitability of an applicant's unit; b) activity carried on by an agency of the United States or by any State or local governmental body or agency in'connection with. code enforcement or a public improvement or development program. This would. include displacement because of disposition of a multifamily rental housing project by HUD under section 203 of the Housing and Community Development Amendments of 1978; or c) action by a housing owner that results in an applicant's having to vacate his/her unit, where: 1. the reason for the owner's action is beyond an applicant's ability to control or prevent; 2. the action occurs despite an applicant's having met all previously imposed conditions of occupancy; and 3. the action taken is other than a rent increase or eviction for cause. d) An applicant is also involuntarily displaced if. 1. the applicant has vacated his/her housing unit as a result of actual or threatened physical violence directed against the applicant or one or more members of the applicant's family by a spouse or other member of the applicant's household. This may also include hate crimes directed against an applicants person or properly based on race, color, religion, sex, national origin, handicap or familial status;. or 2. the applicant lives in a housing unit with such an individual-engages in violence, as determined by the PHA in accordance with HUD's administrative instructions, have occurred recently or be of a continuing nature. This must be determined by the PHA and the applicant must certify that the person engaged in such violence will not reside with the applicant family unless the PHA has given advance written approval. 3. the applicant is forced to live with others for lack of sufficient funds to live independently; or 4. a member. of the applicant's family has a mobility or other impairment that makes the person unable to use critical elements of the unit and the owner is not legally obligated to make changes to the unit which would make these elements reasonably accommodating. Substandard housing: A unit is substandard if it: a. is dilapidated and does not provide safe and adequate shelter, endangers the health, safety and well being of-the family, has one or more critical-defects, or a combination of intermediate defects in sufficient number or extent to require considerable repair or rebuilding. The defects may involve original .construction or may result from continued neglect or lack of repair or from serious damage to the structure. b. does not. have operable. indoor plumbing; c. does not have a usable flush toilet inside the unit for the exclusive use'of the family; d, does not have a usable bathtub or shower inside the unit for the exclusive use of the family; e. does not have electricity,. or has inadequate or unsafe electrical service; io f, does not have a safe or adequate source of heat; g. should, but does not have a kitchen.. Single room occupancy (SRO) is not considered substandard solely because the unit does not contain sanitary or food preparation facilities; h. has been declared unfit for habitation by an agency or unit of government; i. is occupied by more than two persons for every living/sleeping room. j. an applicant who is a "homeless family" is living in substandard housing. A "homeless family" includes any individual. or family who: i. lacks a fixed, regular, and adequate nighttime residence; and ii. has a primary nighttime residence that is: 1. a supervised publicly or privately operated shelter designed to provide temporary living accommodations (including welfiare hotels, congregate shelters, and transitional housing); 2. an institution that provides a temporary residence for individuals intended to be institutionalized; or 3. a public or private place not. designed for, or ordinarily used as a ,regular sleeping accommodations for human beings. Rent burden; An applicant is considered to have a rent burden if the family or individual is paying more: than 50% of their income for rent for 90 (ninety) days or more. For this purpose, rent is defined as: a. The actual amount due, calculated on a monthly basis, under a lease or occupancy agreement between a family and the family's current landlord; and b. in the case of utilities purchased directly by tenants from utility providers, i. the PHA's reasonable estimate of tenant-purchased utilities (except telephone) and other housing services that are normally included in rent; or ii. if the family chooses, the average monthly payments that is actually made for these utilities and services for the most recent twelve month period or, if information is not obtainable for the entire period, for an appropriate recent period, reduced by any amounts paid for by any energy assistance program. ii iii. in the case of an applicant who owns a manufactured home, but who. rents the space upon which it is located, rent includes the monthly payment to amortize the purchase price of the home, as calculated in .accordance with HUD's requirements. 2. Local preferences are: -applicants currently working in Richfield fora .period of at least 90 days prior to selection. -applicants currently residing in the City of Richfield. Local preferences will be rated with equal value. Applicants without a Federal Preference will be selected after the Federal Preference applicants, with the exception of the 10% allowable under total annual admissions. Applicants with neither a Federal nor a local preference will be served last. 3. Verification of Income and Determination of Total Tenant Payment. Verifications are obtained through third party sources. The applicant is required to sign specific information release forms for each type of income, asset, and deduction. When third party verification is not possible, the participant file is documented as to why third party verification was not obtained and feasible documentation from the family is accepted (i.e., award letters from Social Security).. Ineligible applicants are notified in writing by the Leased Housing Specialist or the Leased Housing Assistant. Total Tenant Payments are calculated by the Leased Housing Specialist or the Leased Housing Assistant. Relation to Other Functions. Applicants are advised in writing of their initial eligibility based on the information obtained on the preliminary application. At the time a Certificate or Voucher is available, complete third.. party verification is obtained and final determination of eligibility is made. All ineligible applicants are informed in writing. 4. Unit Size Standards The Certificate or Voucher of Family Participation shall specify the smallest number of bedrooms appropriate to the family, taking into consideration; a. the minimum commitment of housing assistance payments, b. avoidance of overcrowding, and c. compliance with applicable Housing .Quality Standards. In issuing a Certificate or Voucher of Family Participation the Authority shall apply the following unit size standards as appropriate for the applicant family: 12 UNIT SIZE STANDARDS Number and Composition of Family Members 1 Person: 2 Persons: a. 2 Adults - b: _1 parent and 1 child 3 Persons: a. 2 adults and 1 child b. 1 Parent and 2 children of same sex c. 1 Parent and 2 children of opposite sex 4 Persons: a. 2 adults and 2 children. of same sex b. 1 Parent and 3 children, all of same sex c. 1 Parent and 3 children, 2 of same sex, 1 of opposite sex 5 Persons: a. 2 adults and 3 children of the same sex b. 2 adults and 3 children, 2 of same sex, 1 of opposite c. 1 Parent and 4 children, all of same sex d. 1 Parent and 4 children, 2 of each sex e. 1 Parent and. 4 children, 3 of one sex, 1 of opposite 6 Persons: a. 2 adults and 4 children, .all of the same sex b. 2 adults and 4 children, 2 of each sex c. 2 adults (or single parent) with 4 children 3 of same sex, 1 of opposite sex. Number of Bedrooms 0 or 1 Bedroom Unit 1 $edroom Unit 2 Bedroom Unit 2 Bedroom Unit 2 Bedroom Unit 2 Bedroom Unit. 2 Bedroom Unit 3 Bedroom Unit 3 Bedroom Unit 3 Bedroom Unit 3 Bedroom Unit 3 Bedroom Unit 3 Bedroom Unit 3 Bedroom Unit 3 Bedroom Unit 3 Bedroom Unit. 3 Bedroom Unit 13 These standards are set forth solely for determining the bedroom. size to be designated on the Certificate or Voucher of Family Participation. Exception to occupancy standards may be requested for medical reasons or other hardships and•will be considered on a case by case basis. 5. Briefings and Issuance of Certificates and Vouchers We offer individual briefings to the. extent possible. When not feasible, group briefings are restricted to 7 to 10 persons. Briefings are held at the Richfield City Hall. Evening briefings may be scheduled to accommodate working families. Packets containing the required HUD -forms are used in briefing sessions. The Certificate and Voucher holders are informed of their responsibilities and obligations as participants in the Program. Portability of Housing Vouchers and Certificates is explained to the participants at the briefing session. No audio-visual aids are. used. Printed materials are prepared in English. There is no guarantee that a given family will understand all of the facets of the Program. If applicants appear to lack comprehension of the Program, staff will devote additional time to answer their questions. The determinations to extend Certificates and Vouchers are made by the Leased Housing Specialist or Leased Housing Assistant on a case by case basis and are largely determined by the amount of effort which a family appears to be expending in finding a unit. Families experiencing unusual difficulty locating a unit are put in contact with owners who are willing to participate in the Program: .Families .encountering apparent discrimination are informed of the appropriate resources for assistance in filing a complaint. They are also advised of owners willing to participate in the program. We do not involve other organizations. in the briefing process,. except when there are comprehension problems. The PHA now has some additional resource people when a language barrier exists. Social workers and relatives of participants with . comprehension problems are encouraged to attend the briefings with the participants.. 6. Housing Quality Standards and Inspections. When the family finds a .unit suitable to their needs, they must submit a Request for Lease Approval, indicating. they wish to lease the selected unit. Applicants are encouraged to submit this form by the 15th of the month prior to the desired beginning lease date. 14 Before approving a lease, the Richfield HRA will inspect the unit for compliance with Housing Quality Standards (HQS). These standards are established in accordance with federal regulations and set forth in the HUD Inspection Form, for assurance of a decent, safe, and sanitary condition of the unit. If the unit fails •inspection, the owner and the family will be informed in writing of the defects to be corrected in order for the unit to meet Housing Quality Standards. The Richfield HRA will have the final responsibility for deciding when the unit has been improved to meet minimum standards. 7. Relation to Other Functions A) Lease Approval Initial lease approval requests are received by the Leased Housing Specialist or Leased Housing Assistant. Required inspections are scheduled by the Leased. Housing Specialist or Leased Housing Assistant, as appropriate. Most owners agree to use the suggested Richfield Lease. -Families and owners are advised by mail, or by telephone, if necessary, should a unit fail an inspection. Differences in perception of unit adequacy are resolved between the parties, but the PHA does not allow a family to receive assistance for a unit which does not meet the Housing Quality Standards. No HAP Contract is executed until the. property is brought into compliance with the Housing Quality Standards. Re-inspections are scheduled accordingly, at the request of the owner or the family, in order to clear the unit for the execution of an Assisted Lease and HAP Contract. B) Grounds for Denial or Termination of Assistance If the Richfield HRA determines that the lease cannot be approved, the owner and the participant shallbe notified. The Richfield HRA may deny an applicant admission to participation in the program, may deny issuance of another certificate to a participant who wants to move to another dwelling unit and may decline to enter into a contract or to approve a lease, where requested by a participant, if the applicant or participant: -currently owes rent or other amount to the Richfield HRA or to another Authority in connection with a Section 8 certificate or voucher or public housing assistance under the United States Housing Act of 1937; unless making regular payments under a Repayment Agreement. -has-not reimbursed or is not making regular payments to the Richfield HRA or another Authority for any amounts paid to an Owner under a Contract for rent or other amounts owed by the household under the Lease or for a vacated unit; -has committed any fraud in connection with any federal housing assistance program; is -has violated any. obligation under the Section 8 Existing Housing Program as stated.in the certificate or voucher of Family Participation. -has breached a repayment agreement as described in federal regulations Section 882.210(c) and 887.403 (v). -.has poor past performance in meeting financial obligations especially rent; - has a record of disturbance of neighbors, destruction of property, or unacceptable living or housekeeping habits; - has a history of criminal activity involving crimes of physical violence to persons or property or a record of other criminal acts which would adversely affect. the health, safety, or welfare of other residents; In the event of the receipt of unfavorable- information with respect to an applicant, consideration shah be given to the time, nature, and extent of the applicant's conduct and to factors which might indicate a reasonable probability of favorable future conduct or financial prospects for example: evidence of rehabilitation; evidence of the applicants family's participation irr or willingness to participate in social service or other appropriate counseling service programs and availability of such programs; evidence of the applicant family's willingness to attempt to increase family income and the availability of training or employment programs in the locality. Applicant families or participants determined to be eligible or having been denied assistance shall be promptly notified in writing of the. decision and may be given the opportunity for an informal review or hearing in accordance with the informal review and hearing procedure which is provided as an attachment to this administrative plan. C) Other Policies Regarding Tenancy Richfield HRA gives all program participants moving into Richfield a Tenant Responsibilities sheet stating the housing authority's policies regarding some of-the more common problems that arise, income change policies, and tenant responsibilities. This material is carefully explained to be certain the tenant understands the HRA policies on these issues. 8. Payments to Owners. Computations. and an itemization of Total Tenant Payment and Housing Assistance Payments are computed and maintained by the Richfield HRA and .monitored monthly prior to the issuance.of Housing Assistance Payments to owners. 16 Once the Total Tenant Payment is established, it shall remain in effect until the next scheduled re-certification or until circumstances occur, e.g., as a change in family circumstances that warrant a special rent and/or income review. It is the responsibility of each participant to report a change in family composition, an increase or decrease in income, or a change in medical or child care expenses. If this occurs prior to the Family's next regular re-certification, it could result in a change in Total Tenant Payment. Increases in family income should be reported and staff would determine if a change should be made based on the length of time before re-certification. Changes resulting in an increase in the total tenant payment would- not be made if less than 6 months remain before the annual re-exam date or if the family's gross monthly income did not increase by $100.00 or more per month. The total tenant payment with the certificate program is the family's contribution toward. rent and utilities; 30% of their monthly adjusted income. With the voucher program, the assistance is based on a set subsidy amount; a payment standard, determined by the bedroom size of the unit to be assisted. The- actual amount of subsidy is the difference between the applicable payment standard and 30% of the family's monthly adjusted income. For the voucher program, the PHA does not determine the reasonableness of rent on units where a voucher is being utilized, but would counsel the family if the PHA. deemed: the unit to be unreasonably priced. A family receiving a voucher may choose to pay more than 30% of their adjusted income for housing costs. The amount of assistance provided to the family is related to an applicable payment standard. Anew payment standard would not be applied for interim changed during the term of the lease, but only at annual re-exam time. 9. Information & Assistance for Participating Families. Program participants are encouraged to contact the Richfield HRA if problems arise. While not functioning as a social service agency, the Richfield HRA does maintain an extensive resource file of the social service network- and can readily make referrals.. Program participants experiencing difficulties with owners regarding terms of the lease, are encouraged to contact the Richfield HRA. In these circumstances the Richfield HRA will act as liaison in an attempt to resolve the issue. 10. Review of Family Circumstances, Rents, Utilities and Housing Quality. A) Annual Re-certification An itemized .listing of participants indicating the expiration date of contracts will be used to determine when a re-certification is necessary. This process will begin at least 90 days prior to the expiration of the-lease and contract. ~~ The annual re-certification process will include a re-evaluation of income, family circumstances and composition, as well as a re-inspection of the unit for continued compliance with housing quality standards. When a household remains in Richfield and relocates to a different unit, a new inspection is required., Computation of the new tenant rent will include the application. of the current utility allowance schedule as approved by the Richfield HRA. If family circumstances are such that it is not feasible to anticipate a level of income. over atwelve-month period, the income anticipated for a shorter period may be annualized, subject to a re-determination at the end of the shorter. period. The re- certification procedure will include notification to the family at least 90 days prior to lease expiration, to allow ample time for the verification process and/or relocation if the family wishes to move to a new unit. An interview will be scheduled to assess any changes in family circumstances, size, or income, and to complete the Re-certification of Tenant Eligibility form, using the- current utility allowance schedule and proper Total Tenant Payment calculations. Documents will then be executed with the family and owner, and housing assistance payments will be monitored by the Richfield HRA. B) Interim Re-certification. - Interim income reviews will be conducted when a family reports any changes in income, family size or circumstances, or a change in regulations occurs during the term of the Lease that requires a re-exam. Families are to be notified in writing of any change in rent resulting from a rent review. Interim reviews may also be applicable for zero incomes or whenever the HRA decides a review is necessary. An interim rent review resulting in a decrease in family payments will be effective the first of the following month. An .increase in family payment will .require a reasonable notice to the family of at least one month prior to the effective date. If, at the time of re-certification or a special income or rent review, the amount payable by the family toward the gross rent equals or exceeds the gross rent for the unit it occupies, their assistance in that unit shall be terminated. This termination shall not affect the family's other rights under its lease nor shall such termination preclude resumption of payments as a result of subsequent changes in income,. rents, or-other relevant circumstances during the term of the re-certification period. If the family has an amount payable toward the gross rent which is equal to or exceeds the gross-rent, at the time of their regular re-certification, they may request the Richfield HRA to retain their voucher for one year in case of subsequent changes which could result in them again becoming eligible. is C) Affordability Adjustments to the Payment Standard for Vouchers To assure the continued affordability of housing by families participating on the voucher program, the Richfield HRA can choose to increase the amount of the Payment Standard. This is called an affordability adjustment and is similar to an annual rent adjustment made under the certificate program and is made to offset increases in housing costs. This adjustment is made in the amount of the applicable payment standard and can be initiated.in accordance~with HUD regulations. The Authority may decide to establish an affordability adjustment that will be used to determine the HAP payments for al! participating families, or for certain categories of families by the unit size.. Before establishing an affordability adjustment, the Richfield HRA shall, during a regular scheduled meeting, review and consider the impact of these adjustments on the number`of families that can be assisted.. 1 t . Termination and Family Moves A) Termination Obligations of the participant under the program will be clearly reviewed with the household at the certificate or voucher briefing and included as an insert in the information packet and as a term of the Lease Agreement and Addendum to Lease. The re-certification process is therefore started at least 60 days prior to the lease expiration date to allow for a proper notice to be given in the event of a move, and verification to be completed. Grounds for termination of participation are clearly spelled out in the Executed Lease Agreement and the Addendum to Lease. An owner may evict a participant only by instituting a court action and must notify the Richfield HRA in writing concurrent with the notice to the household. When a Housing Assistance Payments Contract is terminated and a participant does not continue on the program, a new applicant will be selected for participation according to this Administrative- Plan. A Participant must continue to occupy its approved unit for the initial year of the-lease term, unless the. owner and Participant agree to a mutual termination of the Lease. The Participant may terminate the lease without cause at any time after the first year of the term of the lease, on not more than 60 days written notice by the household to the owner, with a copy to the .Richfield HRA. If it is determined that a participant has intentionally misrepresented to the HRA information regarding income, assets, deductions and/or family composition and/or initiates or participates in bribes, or side. payments, the HRA will take the appropriate 19 action to stop any overpayment of benefits occurring due to the misrepresentation and will terminate the family's assistance.. If such action is taken, the participant will be notified in writing. If the family has received a benefit to which it was not entitled, the value of the benefit wil! be determined and the family will be required to repay the full amount within a time limit determined by the HRA or court system. Future eligibility for assistance will be contingent upon full repayment. The tenant has the right to request a hearing within 10 days of notification of the HRA's determination according to the grievance policy procedures. If it is determined that the participant has unintentionally supplied erroneous and/or has omitted information regarding income, assets, deductions, and/or family composition, the HRA will take the appropriate action to correct the error or omission. !f the error or omission has resulted in the family receiving a benefit to which it was not entitled, the value of the benefit will be determined and the family will be required to repay the full amount within a reasonable period of time. If the error or omission affects the size of the unit for which the family is eligible, the HRA wil( require the family to move to the appropriate size unit at the time of their next re-certification. B) Owner Claims Owners seeking reimbursement from the Richfield HRA for loss of rent or damages will complete the applicable parts of the Section 8 Existing Housing Assistance Payments Program Owner claim form, along with supporting documentation. The Richfield. HRA will then review all information regarding the claim for accuracy and completeness, taking into account the proper notice requirements specified in the lease and determine the amount, if any, to which the owner is entitled. This process wilt be conducted according to recommended procedures in the Administrative Practices Handbook for the Section 8 Existing Housing Program and in compliance with current program regulations. Under the certificate program, claims can be paid for actual amounts due the landlord for damages and unpaid rent, up to an amount equal to two months' rent, minus the security deposit collected or allowed by program regulations. The amount of the deposit should not exceed the greater of the amount of the Total Tenant Payment or $50. For a vacancy loss claim with the certificate program, the owner retains the housing assistance payment for the month that the unit is vacated, plus up to 80% of the total rent for one. additional month if the unit is still vacant, minus the amount of the security deposit the owner could have collected from the household. 20 Under the voucher program, claims can be paid for actual amounts due the owner for damages and unpaid rent up to one month's rent, minus the security deposit the owner could collect or actually collected, whichever is greater. In the case of vacancy loss, the owner can retain the housing assistance payment only for the month in which the vacancy occurs. No additional payment will be made. Richfield HRA will not be held responsible for tenants. share ofi unpaid. rent beyond a two month period if the owner has not filed for eviction. C) Housing Voucher Portability.. The portability of housing vouchers and certificates as described herein refers to the opportunity for program participants to move outside the HRA's jurisdiction, while continuing to receive assistance. When a Richfield voucher or certificate holder moves from Richfield to another jurisdiction, that participant may not move from that jurisdiction in less than a twelve month period, unless special circumstances occur, such as domestic violence, job transfer, etc. Special approval must be given on a case by case basis. The Richfield HRA will restrict the number of voucher families eligible to move out of state under these portability guidelines to not more than 15 percent of the voucher units under lease. DEFINITIONS: The INITIAL PHA (Public Housing Agency) is the PHA administering a Section 8 Program with a program participant who desires to move or who has moved to another jurisdiction. The RECEIVING PHA is the PHA administering a Section 8 Certificate and/or Voucher Program that accepts a voucher or certificate holder from another PHA. The ADMINISTRATIVE FEE is a fee earned by the PHA for each unit under contract with an owner each. month. This fee is used to cover a PHA's ongoing program administrative expenses. The PRELIMINARY FEE is a one-time allowance per unit and. is based on a PHA's actual costs in starting up a new allocation of units. The HARD TO HOUSE FEE is a fee earned by the PHA to cover the cost of special assistance given every time a family with three or more minors is enabled to find suitable housing. The APPLICABLE PAYMENT STANDARD is an amount used to calculate the monthly housing assistance payment for voucher holders. 21 The following procedures will be used when the Richfield HRA is the Initial PHA: 1) A family is eligible for portability if it holds a current housing voucher or certificate. 2) The family eligible for portability will notify the PHA of its desire to move to another jurisdiction. The PHA will then contact the new jurisdiction to determine whether they administer a Section 8 program. 3) If the new jurisdiction does not administer the applicable program, they may authorize the initial PHA to administer in their jurisdiction. 4) If the PHA in the new jurisdiction (The Receiving PHA) operates a Section 8 program, it shall accept the family and provide services to the family as if they were part of its own program. The Initial PHA will: a) Notify the Receiving PHA to expect the family; b) Verify to the Receiving PHA that the family met the income eligibility requirement for admission to the initial PHA's program; and c) Issue the family a housing voucher or certificate and state the date by which a Request for Lease Approval must be submitted to the Receiving - PHA. 5) When the family moves out of the Initial PHA's jurisdiction, the Initial PHA retains funding for the voucher under its Annual Contributions Contract (ACC). 6) The Initial PHA shall reimburse the Receiving PHA for the full amount of the housing assistance payment made by the Receiving PHA on behalf of the family. For vouchers, the amount of housing assistance shall be based on the applicable Payment Standard in effect at the Receiving PHA. if the Receiving PHA elects to provide assistance to the family utilizing funding under its own certificate or voucher program, the Initial PHA is not required to reimburse the Receiving PHA. 7) The Initial PHA shall. reimburse the Receiving PHA an amount equal to 80ao of the Initial PHA's administrative fee for each unit month that the family is in the Receiving PHA's jurisdiction. 8) The Initial PHA is eligible to receive a preliminary fee for any new unit, limited by cost-justified expenses. 22 9) If the portable family leaves the program, or if the Receiving PHA elects to provide assistance to the family with its own voucher or certificate program, the Initial PHA is free to use the funding needed to support the portable family for other families. The following procedures will be used when the Richfield HRA is the Receiving PHA: 1) A Receiving PHA that administers a Section 8 program may not limit the number of vouchers or certificates- issued to portable families coming into their jurisdiction. - 2) The Receiving PHA shall not deny the family the use of a voucher or certificate on the grounds that the family income exceeds the income limits for eligibility in the Receiving PHA's jurisdiction. 3) The Receiving PHA will promptly notify the Initial PHA if the family does not submit a .Request for Lease Approval by the date specified by the Initial PHA. 4) The. Receiving PHA shall re-certify family income initially for the. purpose of determining housing assistance payments. All the functions normally associated with providing assistance to a family on its own program will be performed, including lease approval, annual re-certification and unit inspection. 5) The Receiving PHA is responsible for payments it makes on behalf of the family to the owner in its jurisdiction. The Receiving PHA shall either bill the Initial PHA for the Housing Assistance Program (HAP) payments it makes on behalf of the family, or provide rent assistance to the family under its own certificate or voucher program. ,Richfield HRA will bill initial PHA's in order to reserve all available vouchers or certificates under its own program to accommodate the waiting list. 6) The, Receiving PHA may bill the Initial PHA for an amount equal to 80% of the Initial PHA's~ administrative fee, unless it elects to provide assistance under its own certificate or voucher program. 7) The Receiving PHA also may bill the Initial PHA for a preliminary fee for cost justified- expenses each time it accepts a portable family into its jurisdiction. 8) !f the Receiving PHA accepts a portable voucher family from another jurisdiction and chooses to assist them under their own program, it is .eligible to .receive the Preliminary Fee from its own housing voucher fee reserve account. 9) If the Receiving PHA issues a portable voucher family a certificate, they may claim the Preliminary Fee at year end settlement against the ACC project reserve for the certificate program. 23 10) !f the family wishes to move out of the jurisdiction of the Receiving PHA, or ceases to be a participant on the program, the receiving PHA will promptly notify the Initial PHA. 71) If the family moves out of the jurisdiction in which the Receiving .PHA has .been biNing the Initial PHA, the PHA in the new jurisdiction to which the family moves becomes the Receiving PHA. The first Receiving PHA is no longer involved, because the Initial PHA retains funding authority for the housing voucher or certificate. 12) If a family moves from a jurisdiction in which the Receiving PHA had issued assistance under its own program, this Receiving PHA becomes the new Initial PHA. The PHA in the new jurisdiction to which the .family moves becomes the Receiving PHA. The Initial PHA that originaNy selected the family is no longer involved. 13) .When Richfield HRA is a receiving PHA, the program participant will be accepted only if the Initial PHA will reimburse the Receiving PHA on a monthly basis for administrative fees and housing assistance payments. 12. Complaints and Appeals Upon notification by the household that the owner is not complying with the Lease and Contract provisions,. the Richfield HRA will talk to the owner of the unit in an attempt to resolve the problem. If the -owner takes no action and the Richfield HRA determines that a breach of the Contract .has occurred, the Richfield HRA may exercise any of its rights or remedies under the Contract. The Richfield HRA will notify the owner in writing of such. determination and include a brief statement of the reason(s) for the determination and may require the owner to take corrective action by a time prescribed in the notice. The Richfield HRA's rights and remedies under the Contract include recovery of overpayments, termination or reduction of housing assistance payments, and termination of the contract. Though most tenant-owner conflicts are resolved between those entities, if the owner presents complaints regarding a participating. household, the Richfield HRA may make a reasonable attempt to resolve the problem. If no resolution is feasible, the owner may elect to evict the household in accordance with procedures spelled out in the Lease and current program regulations. If the Richfield HRA decides to terminate Housing Assistance Payments on behalf of a participating family, an opportunity for an informal hearing shall be granted according to current regulations and as set forth in the informal review and hearing procedure.- 24 13. informal Review and Hearing Procedures If the Richfield HRA decides to terminate Housing Assistance Payments on behalf of a participating family, an opportunity for an informal hearing shall be granted according to current regulations and as set forth in the Authority's Informal Hearing Procedures, (copy attached to this Administrative Plan). The lnformal Hearing Procedures will also offer informal hearings in the matter of Owner/Tenant disputes with regard to damage claims and/or vacancy loss, 14. Monitoring .Program Performance The (ease-up of the Certificates and Vouchers will be conducted according to the Lease-up schedule, which accompanies the budget information. This schedule will be continually monitored to assure the optimal use of our unit allocation. Requests for certificate and voucher allocations will be based on the current utilization of units and the anticipated certificate and voucher turnover. 15. Review and Amendment Policies The foregoing policies are subject to review and amendmentby the Housing -and Redevelopment Authority in and for the City of Richfield. C) Budgeting and Staff Needs Comments concerning budget and staffing needs follow: -The Housing Supervisor and Leased Housing Specialist have responsibilities, including -but not limited to: -budget and requisition information. -preparation and issuance of HAP checks -auditing of accounts -draft HUD reports and internal-program monitoring reports - HQS Inspections are provided for each Voucher or certificate client as required by HUD. These are conducted by the Leased Housing Assistant. -The Leased Housing Specialist, Leased Housing Assistant, and Community Development Technician are responsible for outreach, determination of eligibility, maintaining the waiting list, verification of income, determining contribution, briefing families, issuing vouchers or certificates and finalizing lease and HAP contracts. 2s The HRA board has the following policies: -Operating Reserve funds will be spent on eligible housing activities in accordance with federal regulation. -Projected administrative fees and the Operating Reserve will cover all projected costs of program administration. - A positive balance (a threshold greater than $0) will be maintained in the Operating. Reserve fund to ensure there are sufficient funds for ongoing administrative costs. This balance maybe spent on eligible housing activities in accordance with the HRA approved budget and applicable laws without further prior approval of the HRA. 26 INFORMAL REVIEW AND HEARING PROCEDURE Housing and Redevelopment Authority in and for the. City of Richfield Section 8 Existing Rent Assistance Certificate and Voucher Program The purpose of this review procedure is to provide an Applicant or Participant on the Richfield Housing and Redevelopment Authority (HRA) Section 8 Existing Housing Assistance Program an opportunity for an informal review or hearing of a decision by the HRA to deny, reduce, or terminate assistance. It is not the purpose of this review to resolve disputes or problems which occur between applicants, participants, and owners,. nor to review. discretionary administrative determinations by the HRA. Rather, the review process is established to determine whether an HRA decision is in accordance with applicable laws, HUD regulations, and HRA administrative standards. Informal Review for Applicants: 1) The HRA must give an Applicant for participation in the HRA's Program a prompt written notice of a decision denying assistance, including a decision which denied a listing on the HRA's waiting list, issuance of a Voucher or Certificate, or participation in the Program. The notice shall also state. that the applicant may request in writing, an informal review of the decision within 30 days. 2) The informal review will be held at the HRA offices and conducted. by the Hearing Officer designated by the HRA Administrator. This would be someone other than the individual. that originally made or approved the decision. 3) At the informal .review, the Applicant will be given the opportunity to present written or .oral objections to the HRA decision. Every attempt will be made at the time of the informal review to resolve the dispute. 4) Following the review, the HRA will notify the applicant in writing within 30 days, of the final HRA decision,- including a brief statement of the reason(s) for the final decision. The HRA is not required to provide an Applicant with an informal review in the following cases: - To consider discretionary administrative determinations by the HRA or to consider general policy issues or class grievances; 27 - To review the HRA's determination of the number of bedrooms entered on the Certificate or Voucher in accordance with the occupancy standards established by the HRA; - To review the HRA's determination that a unit does not comply with the Housing Quality Standards or the HRA's determination to not approve the Lease for the unit; - To review the HRA's decision to disapprove a request for an extension on an Applicant's certificate,or voucher. Informal Hearing for Participants: 1) The HRA must give a Participant in the HRA's Section 8 Program a prompt written notice of a decision affecting their status on the Program and shall state the. reasons for the decision. If the Participant does not agree with the decision, an informal hearing may be .requested in writing, within 30 days. An opportunity for a hearing will be granted in the following cases only: - A determination of the amount of the Housing Assistance Payment - A decision to deny or terminate assistance on behalf of the Participant; - A decision to reduce the unit size allowed for the participant family or to grant an exception from the standards; - - A determination of the number of bedrooms allowed for a participant family that wishes to move to another unit. - When there is a damage claim dispute. . 2) The informal- hearing will be conducted by a Hearing Officer designated by the HRA Administrator. This would be someone other than the .individual that originally made or approved the decision. 3) The participant may be represented by a lawyer or other representative at its own expense. 4) At the informal hearing, the HRA and the Participant will be given the opportunity to present evidence and may question any witnesses. 5) Following the hearing, the HRA will notify the Participant in writing within 30 days, of the final decision, including a brief statement of the reason(s) for the decision. 28 The HRA is not required to provide the Participant with an informal hearing. in the fallowing cases: - To review discretionary administrative determinations by the HRA or to consider general policy issues or class grievances; - To review the HRA's determination that a unit does not comply with- Housing Quality Standards due to the Owner's lack of maintenance, or because of an increase in family size or change in family composition; - To review an HRA decision to exercise any remedy against the Owner under an outstanding Contract; - To review an HRA decision to not approve a request for an extension on a Voucher for a Participant that wants to°move to another unit with continued Program participation. 29 RICHFIELD HOUSING & REDEVELOPMENT AUTHORITY POLICIES GOVERNING INFORMAL HEARING PROCEDURES I. INFORMAL HEARING PROCEDURES A. DEFINITIONS I. Participant. "Participant" means a person who receives Section 8 rent assistance from Richfield HRA. 2. Owner. "Owner" means any person or entity who has entered into a Housing Assistance Payments Contract with the Richfield HRA for the purpose of leasing a rental unit to a participant. 3. Hearing Officer. "Hearing Officer" means a person appointed by the Richfield HRA to hear and review those decisions or determinations of the Richfield HRA which are subject to these hearing procedures. (See Section I-B) The Hearing Officer shall not be a person directly involved in the administration of the Section 8 Program. 4. Informal Hearing. "Informal Hearing" means a hearing conducted by a Hearing Officer to determine whether a Richfield HRA decision to deny., modify, or terminate a Participant's or Owner's benefits or rights is in accordance with law, HUD regulations and Richfield HRA Policies. B. Informal Hearing Requirements I. The Richfield HRA shall give a Participant an opportunity for an Informal Hearing to consider whether the Richfield HRA's decisions or determinations relating to the Participant are in accordance with law, HUD regulations, and the Richfield HRA policies and. procedures. A participant shall be offered an Informal Hearing to challenge the following decisions or determinations of the Richfield HRA: (a) A determination of the amount of the Total- Tenant Payment or Tenant Rent (not including determination of the Richfield HRA's Housing Allowances for Tenant-Furnished Utilities and Other Services); (b) A decision to deny or terminate assistance on behalf of the Participant; or 30 NOTE: If the Richfield HRA has decided to terminate housing assistance payments on behalf of a Participant under an outstanding Housing Assistance Payments Contract, but is required to provide an Informal Hearing on the decision, the Participant will be given the opportunity for an Informal Hearing before termination of payments. (c) A determination of a-Participant's responsibility for or the amount of an Owner's claim-for damages, unpaid rent or vacancy loss. 2. Richfield HRA shall give an Owner an opportunity for an Informal Hearing to consider whether the Richfield HRA's decisions or determinations relating to the Owner are in accordance with law, HUD regulations and'Richfield HRA policies and procedures, An Owner shall be afforded an Informal Hearing to challenge Richfield HRA's decisions or determinations relating to payment of an .Owner's claim to unpaid .rent or damages. 3. Informal Hearings will not be offered in the following cases: (a) To consider general policy issues or to review discretionary administrative determinations by Richfield HRA; or (b) To review the Richfield HRA's determination that a unit does not comply with the Housing Quality Standards, that the Owner has failed to maintain or operate a contract unit to provide decent, safe and sanitary housing in accordance with the Housing Quality Standards (including all services, maintenance, and utilities required under the lease,) or tha# the contract unit is not decent, safe, and sanitary due to an increase in family size or change in family composition; or (c) To review a decision by the Richfield HRA to exercise any remedy against the Owner under an outstanding Housing Assistance Payments Contract, including the termination of housing assistance payments to the Owner; or (d)~ To review the Richfield HRA decision not to approve a Participant's request for an extension of the term of the Voucher issued to a Participant who wants to move to another dwelling unit with continued Richfield HRA Section 8 assistance. 31 C. Request for Hearing 1. Any Participant or Owner may make a request for an Informal Hearing either orally or in writing to the Richfield HRA. Requests for an Informal Hearing must be made within the time limits specified in any • notice. sent to the Participant or Owner by the Richfield HRA. 2. Within ten (10) working days after receipt of a valid and timely Informal Hearing request, the Richfield HRA will mail a written notice. of the date, time, and place of the Informal Hearing to the party requesting the Informal Hearing, and to any other parties to the dispute. A copy of these Informal Hearing Procedures will be enclosed with the notice. The Informal Hearing date may. be modified by mutual agreement of the parties. D. Special Requirements for Unpaid Rent or Damaae Claims 1. A Participant shall have ten (10) days from notification of an Owner's claim for unpaid rent or damages to .respond to that claim. Once the Richfield HRA has made an initial determination of an Owner's claim, the Participant shall have ten (10) days from notification of such determination to request an Informal Hearing. Each of these ten day C1~1Clnr1~ nn~ ~Irl he nv4nnrlor'1 fnr-S°yP.n .~~~ r'1~~Jflf1P~$V~ fALLIQQ~ -~ Program if the rent payment agreement is executed during that 60 day period. E. Hearing Officer 1~. The Hearing Officer shall preside at the hearing.. The Hearing Officer shall have all powers necessary and reasonable to conduct a fair and orderly hearing, including but not limited to: (a) The power to make rulings on the admissibility. of evidence. All relevant evidence, including ;reliable hearsay, is admissible. Evidence°that is irrelevant to the matters at issue or unduly repetitious-may be excluded. (b) .The power to exclude witnesses from the hearing room so that they cannot hear testimony of other witnesses may not be excluded. (c) The power to ask questions at any time provided that parties to the hearing may not be excluded. 2. The Hearing Officer shall not be a person directly involved in the administration of the Section 8 Program. 3. The Hearing Officer shall be impartial. The Hearing Officer shall withdraw from participation in the hearing at any time if the Hearing Officer deems himself/herself disqualified .for any reason. F. The Informal Hearing 1. All parties may present and .examine evidence, offer rebuttal testimony, present an argument with respect to the issues, and cross examine witnesses. Parties shall have the right to retain and be represented by counsel at their own expense. 2. Any party may be a witness or may present witnesses on his or her behalf. 3. The Hearing Officer will determine the order of presentation of witnesses and evidence. Ordinarily, the Richfield HRA will be asked to .proceed with. its presentation of evidence first. 33 G. Decision of the Hearing Officer 1. The Hearing Officer shall prepare a written decision stating briefly the reasons for the decision. Factual determinations shall be based solely on the evidence presented at the hearing. 2. The Hearing Officer shall give the written decision to the Richfield HRA Leased Housing Specialist (or his or her designee) within fourteen days of the hearing. The Leased Housing Specialist, or designee, shall promptly forward a copy to each of the parties or their counsel and take whatever action is necessary to ensure compliance with the Hearing Officer's decision. 3. The hearing decision shall be binding for Richfield HRA unless: (a) The decision concerns matters for which Richfield HRA is not required to provide the opportunity for a hearing. pursuant to 24 CFR 882.216 (b). (b) The decision is contrary to .HUD regulations or otherwise contrary to federal, state, or local. law. If Richfield HRA determines it is not bound by a hearing decision, the Richfield HRA will promptly notify the parties to the hearing of that determination and the reasons for it. 4. The decision of the Hearing Officer shall not constitute a waiver of nor affect in any manner the right of the parties to seek a judicial remedy for the dispute in a court of law, except as that right may be limited by .Paragraph 3 above. 34 HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. ~ 3 Agenda ,February 28, -1995 Issue Statement: Approval of Subordination Agreement, Phase I, CSM. Backaround: CSM is now seeking permanent financing for Phase I of Shops at Lyndale. GSM intends to obtain that financing from Allstate Life Insurance Company in the amount of $12.9 million. Allstate and -CSM are requesting the HRA to subordinate its interest in the project to Allstate. The HRA may recall that in November there was a request from Norwest Bank and CSM to subordinate its interest in the project to that. of Norwest. CSM was seeking a construction loan for Phase I at that time. Under the proposal if CSM defaulted, payments due CSM from the HRA would be paid to the lender. The lender would be free to manage the .property, to protect. its assets. Recommended Motion: Adopt a motion approving the attached Subordination Agreement and authorizing its execution. Basis of Recommendation: 1. The likelihood of default is low given that the three tenants are regional or national in character. 2. The lender and HRA have similar interests in keeping the project a viable commercial property. 3. This is a common request from developers and the Contract for Private Development anticipated such a request. Alternative Recommendation: 1. Delay action. 2. Refuse to approve. .Discussion/Decision Mode: CSM plans a closing with Allstate soon. A timely response would keep the process moving. ubmitted, Jams Lq~(Prosser Exec a Director JDP:ds SUBORDINATION AGREEMENT AUTHORITY IN "Authority") corporation corporation This Agreement is made effective as of the day of 1995, by and among THE HOUSING AND REDEVELOPMENT AND FOR THE CITY OF RICHFIELD, MINNESOTA (the ALLSTATE LIFE INSURANCE COMPANY, a (the "Lender"), and CSM INVESTORS, INC., a Minnesota (the "Developer") . RECITALS The Authority and CSM Corporation ("CSM Corporation") entered into a Contract For Private Redevelopment dated April 29, 1994 (the "Development Contract"), whereby the Authority agreed to provide certain aid and assistance to the developer under the Development Contract through use of public funds to finance certain costs of development of the Phase I Property and the Phase II Property (as defined in the Development Contract). Pursuant to an Assignment and Assumption dated as of August 1, 1994 (the "Assignment Agreement"), CSM Corporation assigned all of its rights and interests in the Development Contract to the Developer and the Developer assumed all of CSM Corporation's obligations under the Development Contract. To secure the Developer's obligations to the Authority under the .Development Contract, the Developer has executed and delivered the following in favor of the Authority: (i) a Mortgage securing a principal debt of $1,500,000, dated August 2, 1994, and recorded on August 8, 1994, as Document No. 6322375 in the Office of the County Recorder of Hennepin County, Minnesota, (ii) a Mortgage securing a principal debt of $400,000, dated August 3, 1994, and recorded on August 8, 1994, as Document No. 6322614 in the Office of the County Recorder of Hennepin County, Minnesota, (iii) a Mortgage securing a principal debt of $100,000, dated August 4, 1994, and recorded on August 9, 1994, as Document No. 6322968 in the Office of the County Recorder of Hennepin County, Minnesota, and (iv) a Mortgage securing a principal debt of $823,000, dated August 9, 1994, and recorded on August 12, 1994, as Document No. 6325228 in the Office of the County Recorder of Hennepin County, Minnesota (collectively, the "Authority Mortgages"). Pursuant to the Development Contract, the Authority has executed and delivered to the Developer a Limited Revenue Tax Increment Note (Phase I) (the "Revenue Note"), pursuant to which the Authority will make installment payments to the Developer as therein provided. The Lender has made a loan to Developer as of the date hereof in the amount of $12,900,000 (the "Lender Loan") to finance a retail shopping center facility located on the land described in Exhibit A attached hereto and any other land acquired by the Developer after the date of this Agreement in connection with the Project (defined below), including without limitation, Emerson Avenue South and/or Colfax Avenue South to the extent the same are vacated and acquired by the Developer, and any appurtenant easement for the benefit of any of the foregoing land granted or obtained after the date of this Agreement over the Phase II Property, including, without limitation, any such appurtenant easement for access and parking (collectively, the foregoing land and easements are called the "Land"); collectively, the retail shopping center facility and any other improvements now existing or to be constructed on the Land are called the "Project"). The Lender Loan is evidenced by the Developer's promissory note, dated as of 1995, payable to the order of the Lender (the "Lender Note") The Developer's obligations under the Lender Note are secured, among other things, pursuant to a Mortgage, Assignment of Leases, Rents and Contracts, Security Agreement and Fixture Filing dated as of 1995 (the "Lender Mortgage") and by an Assignment of Leases and Rents dated as of 1995 (the "Lender Assignment of Rents"; collectively, the Lender Note, the Lender Mortgage and the Lender Assignment of Rents are called the "Lender Loan Documents"). As a condition of making the Lender Loan, the Lender has xequired that the Authority (i) fully subordinate all of the terms, covenants, conditions and restrictions contained in the Development Contract and all rights and interests of the Authority in or to the Project or the Land (collectively, the Project and the Land are called the "Premises") of any kind whatsoever under the Development Contract, under the Authority Mortgages or otherwise to the lien of the Lender Mortgage and the Lender Assignment of Rents and to any. other lien or security interest at any time hereafter acquired by the Lender in all or any portion of the Premises and (ii) upon receipt of written notice from the Lender certifying that an Event of Default as defined in the Lender Mortgage has occurred and has not been cured by the Developer within any applicable cure period,. make all future payments becoming due and payable under the Revenue Note to the Lender or to any transferee of the Lender. Accordingly, the Authority, the Developer and the Lender hereby agree as follows: 1. The Authority acknowledges and agrees that all rights and interests of the Authority under the Development Contract, under the Authority Mortgages or otherwise in or to the Premises are and shall remain fully subordinate and subject to the liens of the Lender Mortgage and the Lender Assignment of Rents and all liens or security interests now held or at any time hereafter acquired by the Lender to secure other loans or extensions of credit made by the Lender. In further -2- clarification of the subordination accomplished by the preceding sentence, and not in limitation thereof, the Authority acknowledges and agrees that (i) any right which the Authority has under Section 3.2 of the Development Contract or otherwise to utilize or sell the Premises after default by the Developer is fully subordinate to and subject to the lien of the Lender Mortgage and the Lender Assignment of Rents, (ii) any right which the Authority has under Section 6.2 to receive insurance proceeds or to require the Premises to be rebuilt in the event of a casualty to the Premises is fully subordinate to and subject to the rights of the Lender under the Lender Mortgage and the Lender Assignment of Rents, and (iii) notwithstanding the provisions of Sections 8.3 and 10.2 of the Development Contract, either before or after foreclosure by the Lender or action in lieu thereof, the Lender or the Lender's assignee may, without assuming any of the obligations of the Developer under the Development Contract and without any consent from the Authority, undertake to continue to complete construction of the Project with such changes to the Froject as the Lender deems necessary or appropriate, and (iv) notwithstanding the provisions of Section 8.4 of the Development Contract, the Lender shall have no obligation to provide to the Authority any notice of any Event of Default on the part of the Developer under the Lender Mortgage (except as provided in paragraph 9 below) and the Authority shall have no right to cure any Event of Default on the part of the Developer under the Lender Mortgage. 2. The Authority hereby acknowledges that the Revenue Note will be pledged, endorsed and assigned to the Lender as additional collateral for payment of the Lender Loan made by the Lender to the Developer. If in the future there is an Event of Default by the Developer under the Lender Mortgage, the Lender, at its option may require that all subsequent payments due under the Revenue Note be paid solely and directly to the Lender or to the Lender's assignee. Upon the Authority's receipt of any such notification to that effect, the Developer hereby authorizes and directs the Authority, and the Authority hereby agrees, that all subsequent payments due to the Developer under the terms and conditions of the Revenue Note will be paid solely and exclusively to the Lender or to any such assignee, as the case may be. The Developer further agrees that this Agreement shall constitute an irrevocable direction and full grant of authority to the Authority to pay all such amounts to the Lender upon receipt of notice from the Lender directing the Authority to do so, without proof of the Event of Default relied upon in any such notice. The Authority is hereby irrevocably authorized to rely upon and comply with {and shall be fully protected in so doing) any notice or demand by the Lender for the payment to the Lender of any amounts due to the Developer under the Revenue Note and the Authority shall have no duty or obligation to inquire as to whether any Event of Default under the Lender Mortgage has actually occurred or is then existing. The Developer agrees to -3- indemnify and hold the Authority harmless from all claims, demands, and judgments recovered against the Authority and any costs or expenses incurred by the Authority which arise as a result of the Authority's making payments under the Revenue Note to the Lender as provided in this paragraph 2. Notwithstanding any other provision in this Agreement to the contrary, the Authority, the Developer and the Lender acknowledge and agree that the Authority shall have no obligation to make any payments under the Revenue Note to the Lender if an Event of Default (as defined in the Development Contract) has occurred under the Development Contract on the part of the Developer and such Event of Default has not been waived by the Authority or cured by the Developer within the time period permitted under the Development Contract or cured by the Lender within a reasonable time. 3. The Authority and the Developer each acknowledge that the Development Contract is its valid, legal, binding and enforceable obligation, and, as of the date hereof, has not been assigned (except to the Developer as described in the Recitals), modified, supplemented or amended. 4. The Authority and the Developer each acknowledge that the Phase I Property has been and is being developed in accordance with the Concept Plans (as defined in the Development Contract). 5. The Authority and the Developer agree that notwithstanding the provisions of Section 4.5 of the Development Agreement, the Developer shall complete the construction of all of the Phase I Minimum Improvements within ( ) months after commencement of construction. 6. To the best of the Authority's knowledge and to the best of the Developer's knowledge, no Event of Default (as defined in the Development Contract) or event, which with the passage of time or the giving of notice, or both, would be such an Event of Default, has occurred and is continuing under the Development Contract as of the date hereof. 7. If an Event of Default (as defined in the Development Contract) shall occur under the Development Contract, the Authority shall give written notice thereof to the Lender and the Lender shall have the right, but no obligation, to cure such Event of Default within a reasonable time thereafter. Any notice given to the Lender pursuant to this paragraph 7 shall be sent by certified or registered mail to the Lender at the following address: -4- Allstate Life Insurance Company Allstate Plaze West M2C 3100 Sanders Road Northbrook, Illinois 60062 Attn: Commercial Mortgage Loan Servicing Manager With a copy to: Allstate Insurance Company Allstate Plaze West M2C Financial Law Division 3100 Sanders Road Northbrook, Illinois 60062 8. The Authority acknowledges receipt of copies of the Lender Mortgage and the Lender Assignment of Rents and acknowledges that the Lender Mortgage, the Lender Assignment of Rents, and the development of Phase I Property and Phase II Property are authorized by and approved under the Development Contract.. 9. The Lender agrees to provide written notice to the Authority of the occurrence of an Event of Default on the part of the Developer under the Lender Mortgage prior to commencing any foreclosure proceeding with respect to the Premises or prior to accepting a deed in lieu of foreclosure with respect to the Premises. Any notice given to the Authority pursuant to this paragraph 9 shall be sent by registered or certified mail to the Authority at the following address: The Housing and Redevelopment Authority in and for the City of Richfield 6700 Portland Avenue South Richfield, Minnesota 55423 Attention: Executive Director The failure of the Lender to provide the Authority with any such notice shall not impair the rights of the Lender against the Developer or limit Lender's right to foreclose against the Land or exercise any and all remedies available to Lender under the Lender Loan Documents. 10. During the forty-five (45) day period (the "Option Period") commencing on the date when the Lender sends to the Authority the written notice described in paragraph 9 above, the Authority shall have the option to purchase the Lender Loan and the related Lender Loan Documents from the Lender, without representation or recourse of any kind by the Lender and pursuant to assignment documentation acceptable to the Lender, for a purchase price equal to the outstanding principal balance of the Lender Loan plus all accrued and unpaid interest thereon and any other premiums, penalties, fees, costs and expenses owing to the -5- of funding e as of the d ag es that th re ise r Loan D°cu actin°wl gse and raunaer the the Lend e Auth°r~- ey praCeed the Lende r°vlded ~ of der. under hale. Th oreClosur able t° peri°d' P, lieu Len Such Pur Commence tidies ava t e oPt l° ept a dee a fter the Lender mahts and tints during not ac° until urther option other rig an Docum .ender sha the premle Author exe vise 1 es funding .Lender L° that the ect to Tr t° aJ th s time) resP, peri°a'' elects raPh 1 oli h°weve osure wi the O~tlo e Auth°rlty this Parag m {Minne her agr the ~°reC ati°n of that if thLoan unae r to '~~~e Lender ropose £°r er exP nowledges the Lender occur Pri eriod• Th itY maY p among °th aclt urchase chase must e OPtl°n p the Auth eloper wh° e bevel°per of such Put day °~ ta-On perl° Stitute d ations °£ t aer Loan igatlon on the la rag tre O ation a sub the ob11g der the Le rave n° o erg ands that dur Cons-der all o~ and un shall devel°p e Lender s uld assume t Contract the Lena s bstltute in its So Stitute things e° DeveloPm d, h°wever~anY Such the Lender,t such su on Such under ~ is~ pro is r °r the event Consider er tauce shaSre ion• Doc emther conther ~ In in.e t° d or acc P Sole dis to vided, fur call determ tion amine in its {as defile der dx~sCretion r such Dons Sha11 deter Default e , the ting devel°per the .Lender anY E°enLe der Mo urea °r by a ag ties ms as lowing the foreclos t~,orit Case of a a ter 11 • Xf ' f gage) ,and thr°ugh er , the Ain the Case of e bender the preen m the Deriori Period ed, iri,the hts and un tl es 11 redemP of Such aebe r all rig t and in obta n,s of the pre ion °f a ecording a case maY ment Conunder file on, deed t irat the r as th vel°P ct, tatl that L''Pon e p or 'aP° eclos'~.re ` der the Dent C°~'"tr th°ut l~ml closer of for ity un lopm wi be on or need intsl o~ the ~estunder the •D eve ~-~~ dlelg 7~ f r the exeCUtl irate to tre pr gages o ants c rat th u the need er has Author 5 rictiv nuj i and do ament • es that t pr per Y ~ The all 1cal1Y oche wledg e II th th e au Coiaing of anY ackno e Arcs ce wi th uthority r for th accordant C°ntrac ed with re 12 The e develop ss that iDevel°pmen to Pr°ce als° selected as t actin°wlea e) °f the in wrltln AutrorltY at the been itY furtheetion 3 .2 e{ bevelopt~act • Th s retest S reef and Author ions °f ~ otif led t o ment ConDevel°Peetween ~'7 t Street and Pr th r 1tY h der the Des pport s t ue South tip weer . ~ ~ th theret° 07 ect Au e II un that it on Aven Duty {b e title the Pr pray wledges Emery venue S tie slmpl on with ackno II propertYd~Colfax and that in ConneC and. pr rket Drive) be vacate er for user °n the L der and the Msrk'et d tr tht d by °p e bevel°p resents t e ~ ~~Lh~e ° f this being construc A,atrorit del P erY and P 1 hat he making r _ 6 bevel°per t Agreement have been duly authorized by all necessary action and this Agreement, when executed, shall be the valid and binding obligation of the Authority, enforceable in accordance with its terms. 14. The Lender represents to the Authority and the Developer that the making, delivery and performance of this Agreement have been duly authorized by all necessary action, and when executed and delivered will constitute the legal, valid and binding obligation of the Lender enforceable in accordance with its terms. 25. The Developer represents to the Authority and the Lender that the making, delivery and performance of this Agreement have been duly authorized by all necessary action, and when executed and delivered will constitute the legal, valid and binding obligation of the Developer enforceable in accordance with its terms. 16. The Authority, the Developer, and the Lender acknowledge that the Lender is not a party to the Development Contract and that this Agreement contains the entire Agreement between the Authority and the Lender with respect to any rights or obligations either might otherwise have with respect to the other under the Development Contract and under the Authority Mortgages, and that this Agreement may be amended only in writing signed by the parties hereto. By executing and delivering this Agreement, the Lender shall not incur any obligations to the Authority or to the Developer of any kind whatsoever, except those to the Authority which are expressly set forth herein, and the Lender may administer its extension of credit under the Lender Loan Documents in such manner as it shall deem appropriate without any notice to or consent from the Authority. 17. The Authority agrees that the Lender, at any time and from time to time, may extend the maturity, modify the interest rate or agree to alter any of the terms of payment of the Lender Loan evidenced by the Lender Loan Documents, or release parties liable for payment thereof, or alter, amend, waive or supplement, in any way, any of the terms and provisions of the Lender Mortgage, the Lender Assignment of Rents and all related documents, all without any notice to or consent of the Authority. 18. .This Agreement shall be binding upon and inure to the benefit of the Authority, the Lender and the Developer and their respective successors and assigns. -7- Executed as of the day and year first above written. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD By Its Chairperson By Its Executive Director ALLSTATE LIFE INSURANCE COMPANY By By Its Authorized Signatories CSM INVESTORS, INC. By Its -8- STATE OF MINNESOTA) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 1995, by the Chairperson and the Executive Director of The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, on behalf of said Authority. Notary Public STATE OF MINNESOTA) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 1995, by and by a and a of Allstate Life Insurance Company, a corporation, on behalf of said corporation. Notary Public STATE OF MINNESOTA) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 1995, by the of CSM Investors, Inc., a Minnesota corporation, on behalf of said corporation. Notary Public This instrument was drafted by: Faegre & Benson (RLR) 2200 Norwest Center 90 South Seventh Street Minneapolis, Minnesota 55402-3901 MRRODBAD.WP5 -9- EXHIBIT A TO SUBORDINATION AGREEMENT DESCRIPTION OF LAND The Land described in the referenced instrument is located in Hennepin County, Minnesota, and includes the following: PARCEL l: The North 240 feet of the East 1/2 0~ the Southeast 1/4 of the Southwest 1/4 of the Southeast 1/4 of Section 33, Township 28, Range 24 except the North Thirty (30) feet as described in Book 1957 of Deeds, page 432, Hennepin County, Minnesota. PARCEL 2: The East 160 feet of the South 50 feet of the North 255 feet of the West 320 feet of the South 1/2 of the Southeast 1/4 of the Southeast 1/4 of Section 33, Township 28, Range 24 except the East 30 feet, according to the United States Government Survey thereof and situate in Hennepin County, Minnesota. PARCEL 3: The North 255 feet of the West 320 feet of the South 1/2 of the Southeast 1/4 of the Southeast 1/4 of Section 33, Township 28, North Range 24, West of the 4th Principal Meridian, except the East 30 feet thereof and except the West 130 feet of the East 160 feet of the South 50 feet thereof, Hennepin County, Minnesota. PARCEL 4: The South 90 feet of the North 345 feet of West 320 feet of the South One-half (S1/2) of the Southeast Quarter (SE1/4) of the Southeast Quarter (SW1/4) of Section Thirty-three (33), Township Twenty-eight (28) North, Range Twenty-four (24), West of the 4th Principal Meridian, except the East 30 feet thereof, according to the United States Government Survey thereof, Hennepin County, Minnesota. PARCEL 5: All that part of the West 320 feet of the South 1/2 of the SE1/4 of the SEl/4 of Section 33, Township 28, Range 24 except the North 345 feet thereof and except the parts thereof taken for highway purposes and except for Colfax Avenue South and Market Drive, according to the United States Survey thereof, Hennepin County, Minnesota. PARCEL 6: That part of the E1/2 of the SE1/4 of the SWl/4 of the SE1/4 of Section 33, Township 28, Range 24, which lies South of the North 240 feet thereof, except the West 30 feet thereof and except that part taken for highway, Hennepin County, Minnesota. PARCEL 7: The North 30 feet of the East half of the Southeast Quarter of the Southwest .Quarter of the Southeast Quarter of Section 33, Township 28, Range 24, Hennepin County, Minnesota. PARCEL 8: That part of the following described properties: The South 85 feet of the West half of the East half of the Northeast Quarter of the Southwest Quarter of the Southeast Quarter of Section 33, Township 28, Range 24, Hennepin County, Minnesota and Lot 8, NORTHFELT ADDITION, Hennepin County, Minnesota and Vacated or unvacated 77th Street West, as dedicated in the plat of NORTHFELT ADDITION, Hennepin County, Minnesota Being described as follows: Commencing at the southeast corner of the Northeast Quarter of the Southwest Quarter of the Southeast Quarter of said Section 33; thence South 89 degrees 41 minutes 41 seconds West, assumed bearing, along the south line of said Northwest Quarter of Southwest Quarter of Southeast Quarter 86.58 feet to the point of beginning of the parcel to be described; thence northwesterly 187.04 feet along a non-tangential curve concave to the northeast having a radius of 610.33 feet and a central angle of 17 degrees 33 minutes 32 seconds, the chord of said curve bears North 63 degrees 29 minutes 13 seconds West; thence South 38 degrees 06 minutes 35 seconds West, not tangent to said curve, 32.47 feet; thence southerly along a tangential curve concave to the east having a radius of 120.00 feet to the south line of said Northeast Quarter of Southwest Quarter of Southeast Quarter, thence North 89 degrees 41 minutes 41 seconds East along said south line to the point of beginning. MRRODBAD.WPS -2- HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 12 .Agenda February 28, 1995 Issue Statement: Consideration of a resolution amending the Contract For Private Development, CSM. Background: In April 1994, the HRA and CSM entered into a Contract For Private Development. The contract anticipated that land would be provided to CSM in two pieces, the Phase I land west of Colfax Avenue and Phase II land east of Colfax Avenue. CSM needs to provide additional parking for Phase I. That parking is to be provided by shifting Colfax Avenue to the east. CSM will construct the new road, They will also construct the parking in the area of "old"Colfax Avenue to support Phase I. To achieve this objective, the HRA previously authorized condemnation and quick take of the two properties immediately east of "old" Colfax Avenue. CSM negotiated the purchase of the Westlund property and the court. provided the HRA title to the Adelmann property. CSM needs to initiate construction of the relocated Colfax Avenue and parking area soon. To accomplish this .objective, the contract must be amended. The amendment would. permit the HRA to separate the "Colfax piece" of Phase II from the balance of Phase I1. The amendment is contained in the attached resolution. Item 11.8 (b) indicates that CSM will provide the HRA security for expenses related to this transaction. The form and' amount of that security will be presented to the HRA on February 28, 1995. Recommended Motion: Adopt a motion which approves the attached resolution amending the Contract For Private Development. Basis of Recommendation: 1. The relocation of Colfax Avenue was part of the plans approved by the HRA and City. 2. The HRA previously authorized condemnation and. quick take of this property for the ,purpose of relocating Colfax Avenue. 3. To be in compliance with leases and to satisfactorily comply with requirements of permanent financing this construction needs to be initiated. . Alternative Recommendation: 1. Delay action. 2. Refuse approval. Discussion/Decision Mode: Approval would facilitate completing this, project. by June 1, 1995. Respectful) submitted, James Prosser Executive Director JDP:ds RESdL'fJTIClN Nd. RESdLUTION AMENDING CdNZ'RACT FC3R PRIVATE T~EVELdP'MF~TT {THII~,D AMLrNDMENT) WHEREAS, the Housing end Redevelopment Authority in and .for the City of Richfield {the "HRA") did, an or about April 29, 1994, execute and enter into a contract for private redevelopment ("Contract") with CSM Corporation; and WHEREAS, it now becomes necessary that certain provisions of the Contract be amended; and WHZa;1tEA5, the HRA has reviewed the proposed amendments and the recommendations of its staff snd being fully informed of the requested amendments, NOW, THEREFQRIr., 7~E Y~' R,ESt7LVED 'by the HRA ate Follows 1. Article XI of the Contrast is hereby amended by adding the follow~g new section: SBCtiDn 11.8. Separate Transfer. Notwithgt8ndingany oth®r pravisiow of this Agreement to the contrary, the HRA agrees that upon obtaining title to and possession of the parcels of land described in the attached Exhibit F {'tl l . 8 Laud.") , it wi11 convey the game to the Redeveloper by quit claim deed . Such conveyance sha11 be sub jest to the following conditions precedent. s) Redeveloper is not in default of any of its obligations hereunder. b) Redeveloper has provided the HRA with security in a form and amount acceptable to the HRA which covers any reasonably anticipated costs, expenses or liabilities assooiated with the acquisition of the 11.8 Lands . Such conveyance shall contain such reservations ar undertakings which in the reasonable discretion of the HRA will assure that i) the existing Colfax Avenue South will remain open for continuous access to the parasig lying south of the 11.8 band until access is available by the new enter constructed in accordance with the approved concept puns or, the parcels lying south of the 11.8 Land are acquired by the Redeveloper; end ~) the new entry, when built, will be available far access to the progenies ly'xng between Lyndale and Emerson and lying south of 77th Street. 2. In ell other respects, the Contract as previously amended rams unmodified and in full force and effect. J9D73693 AC12S-68 Adopted by the Housing and, Red~v~Iopment Authority in and Par the City of Richfield this day of , 1995. i~QUSING AND REDEVELt'~PMENT AUTY~C~RITY IN AND FAR 'i~HE CITY OF RICHFIELI? $y ztg $y Its A'I'~'EST: ssn~aega aczas-sa Parcel I «-bstract~{PID No. 33.028-24-44-OQ2S): Der~cript-ion of Pry_,pertX,,.to be ~,,,;a: The North 255 feet of the East 30 feet of the West 32Q feet of the south Half of .the Southeast Quarter of the Southeast Quaxter~ of Section 33, Township 28, Range 24, Hennepin County, ~~.nnesota SU8.7ECT, however, to existing eaaementa for public street and util3,ty purposes fcr Colfax Avenue-South and test 77th street Parcel 2 tAbstxact}EPID No. 33-028-2'4-44'0{~27~: Descrir~tion of PraQert~t to be Taken: The South 9t3 feet of the North 345 feet of the East 30 fret of the West ~2fl feet of the South Half Qf the South+~ast Quarter of the Southeast Quarter of Section 33, Township 28, Range 24, Hersrse~in County, ~iinnesdta SUBJECT, however, to an existing ease~ent for public str~-et and: tatility purposes for Colfax Avenue South Farcel 3 (Abstract {FAD Na. 33-028;24-44-~dQ28~s Deseriotion of Property to be Takers: The South $9.92 feet of the North 434,92 feet of the East 3Q feet of the West 320 feet of the South Half df the Southeast Quarter of the Southeast Quarter of Section 33, Township 28, i~ar:ge 24, Hennepits County, Minnesota . and Ail that part of they East 30 feet of the West X20 feet of the South Half of-the Southeast Quarter of the Southeast Quarter of SeGtioss 33, Township 2$, Range 24, Hennepin County, Minnesota, EXCEPT the North 434.9a feet thereof and the parts thereof taken for highway purposes SUBJECT, howev+~r, to an .existing easement- for public. street aszd utility purposes for Colfax Avenue S~auth F-1 FEB 23 '95 11:20 HOLMES & CRAVEN p,3 ~~~YBY~ F ficate No. 650930{PZD Nos. 33-02g-24-44- Description of Prat~e:_rty to tae Taken: - - - ... Ldt "fi and the .easterly 4.5 feet of Lot 7, $loCk 1, STRAtfD-$C?V7EIQ 3ECt5ND ADDITION, Hennepin County, Minnesota ~tnd That part of LQt 7 lying westerly of the easterly 4.5 feet thereof a-rtd the easterly 4.5 feet of Lot 8, al,l in Block ]., aTRAND-$OwEN SECGND ADDITION, Hennepin County, D~innesota a~'!d _ That part of,the northerly half of West 77 1J2 Street 8s dedicated in the .plat of STRAND-BOWEN SECONi? AI~192TION which lies between Ilia southerly extension of the east 13ne of Lot 6, Slock 1 of said p~.at and the southerly extension of the west line of the-. easterly 4«5 feet o£ Lot $, Slotk 1 of said plat. SUB3EC'1', however, to an existing ®aseme~tt for public stresrt and. . utility purposes for West 77 1l~ Street SU&7ECT l"t1RTHER to a party wall agreement. dated August 5, 195.9, filed C?ctaber ~6, 1959 as Document No« 609$Q2. Parcel S tTorrens Certificate No._'~59625)tPID Nc._33-429-2A~-~~- OQ87 Description of Froperty to b+~ Taken: ~,~~,. All of Lot S, except the Easterly 4.5 feet thereof; Lots 9 to 1~.t inclusive, flock 1, STRAND-BOWEN SECOND ADDITION, according to the recorded plat thereof, Hennepin County, Minnesota $nd That part of the northerly half of West ?? 3t~ Street as dedicated in .the plat of STRAND~BOWEN SECOND ADDITION, which Kies westerly of the southerly extension of the west .line of the easterly ~.5 feet of Lot 8, Block 1, of said plat. and `That part of Colfax Avenue South a~ dedicated ~.n the flat cf STRAND-HOwEN SECOND ADDITION, sahiCh lies northerly of t.~ce Centex line of west 77 1/2 Street as dedicated in said g~,at atzd which lies F-2 EX~IBI~ F southerly of the westerly extension of the north lane of. Lot 11, Black 1, in said plat, SUSJEGT, however, to existing easements for public street and utility purposes for West 77 1/2 Street and Coif 3x Avenue South Parcel 6: Descr3pt.ioxt _Cf Property to be Taken; That part of Golfax Avenue 5out.ri as dedicated in the plat of STRAND-HUWEN SECOiQD ADDITION, w.hioh lies souther3.y of the venter 3.ine o~ West 77 I12 Street as ded.iCate~i in said plat. SUBJECT, however, to an existing easement for publio street and utility purposes for Colfax Avenue South, ~arcei 7: Description of , Property to be 'S'1kexS; That part of the southerly half of .West 77 1JZ Street as de~ticated in.the plat of STRAND-BOWEN SECOND ADDITION, which lies~wester3.y of the northerly extension of the west line of LQt S, B3.oc3c 2, in said pzat. SUBJECT, however, to an existing easement far public street and utility purposes for West 77 1/~ Street.- ~`-3 L/L 30tid @LE6LE£~LS°QI N3l1t7210 'S S3J~IZOH°WO?33 LE°@L S6-E~-933 HOUSING AND REDEVELOPMENT AUTHORITY Addendum to HRA Letter No. 12 Agenda February 28, 1995 Issue Statement: Consideration of Letter of Credit as Section 11.8(b) security. Background: In the event that the HRA adopts the recommended motion contained in HRA Letter No. 12, CSM will then present its proposed Letter of Credit as the security described in Section 11.8(b). The Letter of Credit will be of similar nature to the Letter of Credit: which was recently approved for Phase I. Staff will be present at the meeting to answer any questions. Recommended Motion: Adopt a motion which approves the proposed Letter of Credit as satisfying the security requirement contained. in Section 11.8(b) of the amended Contract for Private Redevelopment. Basis of Recommendation: 1. The Letter of Credit serves as a very accessible security device in the event of a default by the redeveloper. Alternative Recommendation: 1. None. Discussion/Decision Mode: Acceptance of the proposed Letter of Credit will facilitate the closing on the permanent financing for Phase I and will hasten the commencement of construction of the new entry way. Respectfully submitted, Jame rosser Exec ti Director JDP:cak HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 11 Agenda February 28, 1995 Issue Statement: Public hearing on sale of property to CSM Corporation to provide for the construction of Phase II Shops at Lyndale, ILN Redevelopment Project. Background: In April 1994, CSM and the HRA entered into a Contract for Private Development.. On November 1, 1994, CSM was authorized to proceed with Phase I I. CSM has proposed to construct approximately 102,500 square feet of retail space. It is depicted on the attached map. The property to be conveyed by the HRA to CSM would be those parcels for which CSM has been unable to negotiate a purchase and for which the HRA obtains title through condemnation and-quick take. The attached resolution lists-all the property in Phase II as, at this time, it is not known which parcels will be purchased. through negotiations. Recommended Motion: Adopt the attached resolution which authorizes the sale of the Phase II site area to CSM. Basis of Recommendation: 1. The Contract For Private Development anticipated the sale of this property to CSM. 2. CSM would pay HRA costs identified in-the contract. 3. The legal notice for this public hearing was published on February 15, 1995: 4. A letter was sent. to property and business owners informing them of the public hearing. 5. It is appropriate that the HRA consider the sale of this property at the same meeting it considers purchase of this property through condemnation and quick-take. 6: The adoption of this resolution would establish the intent of the HRA on this matter. Alternative Recommendation: 1. Continue the hearing to a date certain. . 2. Refuse to hold the hearing. Discussion/Decision Mode:. Adoption of the resolution would make it possible for the redevelopment process to continue in a timely manner. Respe II submitted, Jame .Prosser Execu a Director JDP:ds HRA RESQLti1TION NQ. THL H©USYNG AND REDEVELaPMENT AUTHORITY ZN AND FOR THE CIT7C taF RICHFIRLD, ~tINNL50TA RESOLUTION AUTIiQRIZING SALE OF REAL FROPERTY LQGATEA 8E~'WEEN COLFAR AND LYNDALE AVENUES AND 7?TH AVENEJE AND T-494 i~HEREAS, the HRA has adopted a redevelopment plan and a tax increment financing gian {the "Plans"} for the area in the City of Richfield generally known as the Interstate/Lyndale/N~.col~.et area {the "Prr~ ~ ect Area") ; and ~i NHEREAS, the Planar as modifi®d, contemplate the acquisition Of certain real property (the "Property") which is located in the Prod®ct Ar®a and which is more particu~.arly described be~.ow in this resolution; and NHEREAB, the HRA has entered ~.nta a contract with CAM Corporation, Tnc. for private redevelopment Qf the Praperty (the '"ContrBCt" j ; and Ti~3EREAS, the Puns and Contract tail for the HRA to assist the Developer W~,th s~.te assembly,- including 1a»d acquis~.tion should the Developer be unable to successfully acquatre the necessary land ' thrugh private negotiations; and WHEREAS, by resolutions adapted Ncavember 27,, 199 and Febrx~ary 28, 3995, the HRA has authorized the acquisition of the Praperty; and Wi3EREA5, by order of the Hennepin County Distr~.ct Court, the HRA has acquired title to a portion of the Property; and ~PHEREAS, the HRA is authorized to se17. real property within its area of aperat~.on after publ~.c hearing; and WHEREAS, the public hear~.ng has Eisen h®ld after proper public ngti.ce; and WI~EREAS, the P~.anning Commission of the City of Richfield has determined that the dispasit~.on of the Property for Project purposes is consistent with the Comprehensive Plan. NOW, THEREFORE, SE IT RLSaLVED by the Housing ar~d Redevelop- ment Authority in and for the City of Richfield: X.. A publ~.c hearing has been held on the sale of the real property described in Attachment A. Z. The chairperson and executive director are author~.zed to ~xo~*.x~o any And a~1 avreemerits regtz~.red to effectuate this resolution. 1 r i S, The contract for private redevelopment contaixts teams and condit~.ans of the gale. , Adopted by the Housing. and Redevelopment Authority in and for the Gity of Richfield, Minnesota this ~ day of , 1995. i omas ara-ts , C a rperson ATTEST': vent Butt nger, Secretary 2 EXFIII3IT A Parcel8 1 and 14 PxD Nos. 33-02$W24-~~-~0082 and -OQ78 Property Addr®sg: 900 and 818--820 77-~./Z Street West, R~.ehfield Legal Deacr~.ption: That part of Lot 1, ~.lring West of the East 10.5 feet there- of, and .the East. 10.34 feet of L©t 2, Block 1, STRANAwBOWEN I SECOND ADnTTZON, Hennepin County, Mir:ne~cota and The west 10 feet., 6 inches of Lvt 10-and all of Lot 11, B1aCx 1, STRAND-BOWEN ADDITION TQ RICHFIELD, Alsa the east 10.5 fast of Lat 1, Black 1, STRAND-BaWEN SECOND ADDITION. all in Hennepin County Minnesota Together with all streets and alleys ad~acer:t and acCZUing thereto, whether vacated or to he vacated Parcel. 2 1~ID No. 33-028-24-44-00$3 Property' Address: 90Z 77-1/2 Street West, Richfield Legal Description: Lot 3 and that paxt of Lot 2 lying west of the East 10.34 feet thereof, 81ack 1, STRAND-SQ~TEN SECOND ADDITION, Hennep- in County, Minnesota Together with all streets and a1.1e~s adjacent and a~caxuing thereto, whether vacated or to be vacated Parcel 3 1~ID No. 33-Q2B-2k-44-0084 Property Address: 904 77M1/Z'Street West, R~.chfield i Legal Description: Lots $ sad 5, Block 1 r S'.~'RAND-BO'i-+YEN SECOND ADDITION. Hennepin County. Minnesota Together with all streets and alleys adjacent and accruing.. thereto, whether vacated or to k~e vacated Parcel ~ ~~n N~. ~~-a~$-~a-~~-OO87 I-rogerty Address: 918-914 77-~./2 Street.We~at, Richf~.eld Legal Description: 1 All of Lot 8, except the Easter~.y 4.5 feet thereof; Lats 9 i to ~,i, inclusiv®, .Block 1, STRAND-8OWEN SECONA ADDITION, according to the recorded plat thereof; Hennepin County, Minnesota and That part of thenortherly half of West 77 1/2 Street a5 dedicated in the plat of STRAND-BdWEN SECOND ADDI'1'xON, which lies westerly of the southerly extension of the west line of the easterly 4.5 feet of Lot 8, Block 1, of said plat. and That. part of Ca~.fax Avenue South as dedicated in the plat of STRAND-AOWEN SECOND ADDITION, which lies northerly of the center l.lne of West 77 1/2 Street as dedicated in said plat and which lies southerly of the weste~^1y 2xtengi0:'i of the north line of Lot 17., Block 1, ~.n said plat, Farce~.s 7 and 8 PIp Nos. 33-0'28-~~-~4-0488 and -0089 Property Address: 901 77-1/2 Street West and 920 78th Street west, Richfield Legal Description: Lots 1, 2, 3 and 4, Block ~, S'~"ItAND-SOWEN aECOND ADDITION, Hennepin County, Minnesota and Lots 5 to ll, inclusive, Bloch 2, STRAN}~-BOwEN SECOND ADDI~ TION, according to the recorded p~.at thereof, Hennepin Gounty, Minnesota Together with all streets and alleys adjacent and accruing thereto, whether vacated ar to be vacated Parcels 9 and i0 PiD No. 33.028-2~--4~-0073 and~0074 Property Address: 800 and 80~ 77-1/2 sta~eet West, Richfield Legal. Descr~,ption: Lots 1 and 2, Block 1, STRAND-BOWEN ADDITION TO RICHFIELD, ' Hennepin County, Minnesota and Lots 3 and ~, Block 1, STRAND-BOWEN ADDIT'iON TO RICHFIELD, Hennepin County, Minnesota Tc-gather with al3 str®ets and alleys adjacent and accruing thereto, whether vacat®d or to be vacated A-~ 2 '~ Bxhib~.t A (ccnt'd) Parce~.s 11 and 3.2 PIA Nos. 3~-428-24-9&-0075 and -0076 Property Address= 8Q8 and 812 77-1/2 street West, Rf.chfie~.d Legal Descr~.ptiona Lots S and 6, Block 1, STRAND-~BQWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota and Lets 7 and 8, Block 1, STRANA-SQWEN ADDITION ~'t7 RICHFIELD, He~x~nepin County, Minnesota Together with all streets and a~.ley8 ddjaC~r~t and accruing th~-reto, whether vacated or to be vacated . Parcel 13 PID No. 33-028-24-4~-0077 Property Address: 816 77-112 Street West, Richfie3d Legal Description: Lat 14, exce~at the w®st ~.4 feet 5 inches thereof and alb, of Lat 9, Block 1, STRAND-BOWEN ADL7ITZO1~ TO RICHFIELD, Hennep~.n County, &lnnesota. Together with the easements appurtenant for. party wa11 purposes over the west 1 foot of Lot 8, Block ~, as shown in Document No. S5b318 and aver the East 6 inches of the west 10.5 feet of Lot 1Q, as shown iM Document No. 555892, aI1 as referred to in deed Document No. ?].88Q8, Files of Registrar of T1.tles. Together with all gtre®ts and alleys adjacent and accruing thereto, whether vacated or to be vacated Parcels 15, 16, 17~ 18 and I9 PID Nos. 33-028-2~~44-4Q$1, -fl08Q, -Qd99, -OIOQr aY1d --0.01 Property Addresses: 819, 811-809, 805-~84~., 723, and 719 77--1/2 Street West Legal. Description: Lots $, 9, 10 and 11, 81ack Z, ST~'tAND-HQWEN A,DDITIOAT TC3 RICHFIELD, Hennepin County, Minnesota. and Lots 4, 5, 5 and 7 and the west 1 foot of Lot 3, Black 2, s3mrlaiutri_~enwF.N nnn~TION 'Y'C RICHFIELD, Hetznelai,r~ County, M.1nne- ~c~ta A-3 Exhibit A {cpnt'd} and Lots ~ and 2, and Lot 3 except the west 1 foot thereof, Block 2, STRAND-BOWEN ADDITION TQ RTCHFIELD, Hennepin Caen- ty, Minnesota and That part of the vacated Aldr3.ch Avenue South adjoining Lot S, Haack 2, STRAND'S SECt7ND ADDITIDN TO RICHFIELD lying between the West®rly extensions across it of the South line of West 79W1/2 Street and the North line of Market. Drive as extended to the West line of STRAND'S SECOND ADDITION TQ RICHFIELD, according to the flat thereof on file or of recoxd in the office of the Register pf Deeds, Henxzegin County, Minnesota and Lot 5, Block 2, STRAND'S SECOND ADIiITIDN TO RTCHFIELD, Hennepin Catxnty, Minn~ssota Together with all streets and alleys adjacent and accruing thereto, wh®ther vacated or to he vacated Parcel 2L1 PID Nc. 33-oas-2~#-44-497 Property Address: 715 77-1/2 Street West, Richfield Legal Aesaription: Lat 4, Block 2, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota Together with alI streets and alleys adjacent and accruing thereto, whether vacs,ted or to be vacafied Parcel 21 PID No. 33028-24-44-0096 Propea~ty Address: 705 77-1/2 Street West, Ric2tfield Legai Descr3:ption: Lots 2 and 3, Block 2, STRAND'S SECOND ADDITION TD RICI3- FIELD, Hennepin County, Minnesota Together with a].1 streets and a13.eys adjacent and accruing thereto, whether vacated dr to be vacated A-~ Exhibit A (eont'd} Parcel 22 PID Na. 33-028-2444-0095 Property Address: 701 77-'1/2 Street West, Richfield Legal Description: Lot 1, Huck 2, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota Together with ail streets and alleys adjacent and accruing thereto, whether vacated ar to be vacated Parcel$ 23, 24 and 25 PID Nos. 33-028-24-44w009Z, 0093, and -0094 Property Address: ?12, 714-716 and 71$ 77-1/Z Street West, Richfield Legal Description: Lots 10 and 11, Block 1, STRAND'S SECOND ADDITION TO RTCH- FIELA, Hennepin County, Minnesota and Lot 9, Block 1, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota and Lpt $, except the easterly 8 inches thereof, 81ock 1, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin C©unty, Minnesota Together with all stre®ts and alleys adjacent and accruing thereto, whether vacated or to be vacated Parcel 25 PID No. 33-828-24-44-009x Property Addr®ss: 7Q8 77-1/2 Street Westr Richfield Legal A®acription: Lots 6, 7 and .the easterly 6 inches of Lot $, Block 1, STRAND'S SECOND ADDITION T4 RICHFIELD, Herinepiri Courity, Minnesota Together with a1k streets and alleys adjacent and accruing thereto, whether vacated or to be vacated A-5 Exh~n~.t A toont~a) Parcel ~, PiD: None Address: None Legal: That part of. West 77th Street a$ ded3.aated ~.n the plat of STRAND-SOWEN SECOND ADDITION, which lies westerly of the northerly extension of the west line of the easter- ly 4.5 feet of Lot 8, Block ~., of sa~.d plat.- Parcel I Part of PID No. 33-02$-24-44-fl025 Address: None Legal Description: The North 255 feet of the East 30 feet of the meat 324 feet of the Sot:th Half of the Southeast Quarter of the Southeast. Quarter of section 33, Township 28, Range 24, Henn®pin Cblintyr Minnesota Parcel. J ~~ Part o£ FID No. 33-02$-24-44-Q027 Address: None Legal Description: R'he South 90 feet of the r~a~^th 345 feet of the East 30 feet of the West 320 feet of the South Half of the $out.heast Quarter of the Southeast Quarter of Section 33, Township 28, Range 24, Hennepin County, Minnesota P~ercels H and L Part of PID No. 33-02$-24-44-002$ Address: None Legal Description: The South $9.92 feet of the North 434.9.2 feet of the East 30 feet of the West 320 feet. of the South ~Ia.l,f of the Southeast Quarter of the South®a~st Quarter of Section 33, Township Z$, Range 24, Hennepin.Cour~t~, Minnesota and A~.1 that part of the East 30 feet of the West ,320 feet of the south HaIP of the Southeast Quarter of the Southeast Quarter of SeCt3.on 33, Township 28, Range 24, Hennepin County, Minnesota, EXCEPT the North 434.92 feet thereof and the parts thereof taken for highway puxposes A-6 ®~IIIIIIIIIIIIIIIIIIIIIIIIIIII i ~ IIIIIIIIIIIII S ~ ~ IIIIIIII ~ ~ I ~~~m...111 ~ P P P 1 1 _ Z 1 1 P 0, :' y> 1 31 1 m ti P P m ~ P P -w n f I - z 1 ~ (~-I-~ T I I ~..U I I I I I I I I I I ~ --1_- ~--'1 " --' "'~ P1°. 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I I I I I I i i L.._.._..L. r.._..- I I I I HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 10 Agenda February 28, 1995 Issue Statement: Adoption of attached resolution authorizing condemnation and quick take of Phase li the Shops at Lyndale, ILN Redevelopment Project. Background: On November 1, 1994, CSM was authorized to proceed with Phase. II of the Shops at Lyndale. Appraisals of real estate and fixtures are virtually complete. The next appropriate step would be for the HRA to authorize condemnation and quick take as was done for Phase I on April 11, 1994 .(see attached map). Phase 11 needs to be substantially complete by November 1995. To meet that schedule, construction should be underway in June. That schedule can be achieved if condemnation is filed March 3. The court would be requested to grant title and possession on June 1. The vacate date foi- property occupants would also be June 1. There is a strong need for the HRA to act on the resolution February 28. CSM and the property and business owners need the commitment of the HRA to Phase II before more significant progress can be made.- Some of the businesses-have found alternative sites. At least four businesses are in the process of moving. Many are, however, waiting for the HRA to adopt the condemnation resolution so the necessity for moving is certain. While CSM has been cooperative and supportive in meeting the needs of businesses which must move, they too are reluctant to pay out any additional funds until the condemnation resolution is adopted. CSM has agreed to reimburse the HRA for damages which are awarded to property owners and related expenses so that HRA monies would not be utilized. Whether title to the. property is provided through negotiation or condemnation and quick take, the occupants would be eligible for relocation benefits. For businesses which must relocate the regulations provide: • Payment for actual reasonable moving and related expenses, and re-establishment. expense up to $10,000, or • fixed payment not to exceed $20,000. Examples of moving expenses include cost of moving personal property, disconnecting and reconnecting equipment, and professional services to plan the move. Reestablishment expenses up to $10,000, including modifications to the replacement property which are required by law or required to accommodate the business and increased rents. A fixed payment may be selected by the relocates in lieu of receiving moving costs and reestablishment expenses. The maximum payment is $20,000 and is based on the net earnings of the business for a two. year period. Residential tenants of at least 90 days prior to the owner receiving an offer to purchase would be eligible for the following: • Self move paid for on the basis of a fixed payment schedule, for example, two rooms of furnishings at $400. • Hire a mover; the packing and unpacking and travel up to 50 miles is paid for (may move beyond 50 miles, but owner would pay the additional mileage; packing and unpacking is still paid for). • Rental assistance payment, if rents at comparable apartments are higher than the rent at present location, up to $5,250 (may be used as down payment assistance to purchase a home). The existence of certain conditions could result in a higher payment. Legal Justification:. The following information is a summary of additional considerations. which help explain and justify the use of condemnation and quick take to acquire the CSM phase II properties: The iLN Redevelopment Study report identifies the following deficiencies which existed within the Redevelopment Plan area at the time the redevelopment was approved: 1: Only 23% of buildings located within. the Plan area were sound, 56% were found to require minor repair and 21 % required major repair. Buildings rated -sound had no major defects. Buildings rated as needing minor repair required some maintenance or repair of some of the major building components. Buildings rated as being in need of a major repair required substantial maintenance or repair of two or more of the major building components such as walls., doors and windows, or gutters or downspouts. 2. The sanitary sewer system serving the westerly portion of the Project Area was near capacity. 3: The overhead utility lines, which include electrical main feeder fines and cable N lines which were located throughout the Project Area, were unsightly and interfered with the location and appearance of new development. 4. The access and layout of off-street parking spaces on the, west side of Lyndale made the spaces closest to 76th Street very difficult to get to and therefore they were infrequently used. In addition, the layout of some of the parking lots was a contributor to parking and appearance problems in the area. The many small, individual lots, especially north of West 76th Street, made the parking system confusing and inefficient. 5. A number of sites or parcels in the Project Area were vacant or under utilized. 6. The Crown Extrusions, Inc. facility; which was primarily an industrial use, was incompatible with the residential and commercial character of the Project Area. 7. The traffic circulation system and parking in the Core Commercial Zone were poorly designed and defined. Too many access points, too many small parking lots, and the constricted parking lot on the west side of Lyndale Avenue contributed to conflicts and confusion. 8. The three intersections of Lyndale Avenue with West 77th Street, West 77th 1/2 and 78th Streets and the I-494 ramp were deemed to be too closely spaced. In addition, the access from West 77-1/2 and 78th Streets to Lyndale Avenue was considered very complex and dangerous. 9. The three streets west of Lyndale, West 77th, 77-1/2 and 78th Streets, were considered too closely spaced and single loaded, which contributed to the overall conflicts and confusion in the area. 10: West 77th Street east of Harriet Avenue had been constructed on one- half the normal right of way and was substandard for a normal street. 11. The pedestrian circulation system in the Core Commercial Zone was poorly defined, poorly maintained -and frequently infringed upon by parked vehicles, open doors, or other obstacles. 12. Most of the Project Area lacked awell-defined and continuous pedestrian circulation system. 13. The Project Area lacked a focal point or a focal place. Most successful commercial developments were considered to have a specific feature or .place which- provides a sense of having arrived. The Project Area provided little sense of arrival or of being in a special place. 14. In a number of cases, outdoor storage and loading areas were poorly maintained and highly visible from adjoining streets and residential areas. 15. A number of incongruous or unsightly features tended to spoil the visual appearance of the Project Area. Among these were the. total lack of any street landscaping or pedestrian furniture or amenities. This was especially noticeable along Lyndale Avenue south of West 76th Street and along West 77-1/2 Street. 16. Other features which detracted from the areas appearance were poorly maintained parking areas and .sidewalks, overhead power lines, poorly maintained and excessive billboards and signs, and the incongruity and mix of the variety of land uses along I-494. 17. The portion of the Project Area between Emerson Avenue and Lyndale Avenue will almost certainly need to be developed before the Cloverleaf site can be successfully developed. On November 12, 1985, pursuant to Council Letter No. 426, the City Council approved Resolution NO. 7101 approving the Interstate/Lyndale/Nicollet Redevelopment Plan. In doing so, the Council made the following findings: 2.01. It is hereby found and determined that within the Project Area there exist conditions of economic obsolescence, physical deterioration, underutilization and inappropriate uses of land. 2.02. it is further determined the physical deterioration of buildings and structures in the Project Area is so extensive as later described herein as to meet the standards of a Redevelopment District set forth in the TIF Act. 2.03. It is further specifically found and determined that: a) the land in the Project Area would not be made available for redevelopment without the public intervention and financial aid ,described in the Redevelopment Pian and the TIF Plan; b) the Redevelopment Plan for the Project Area will afford maximum opportunity, consistent with its own needs of the. City, as a whole, for the redevelopment of the Project Area by private enterprise; c) the Redevelopment Plan conforms to the general development plan of the City as set forth in the comprehensive municipal plan. 2.04. The findings. in this section are made. in compliance with Section 462.521, Subd. 2 of the Redevelopment Act for the purpose of showing the-City's intent to exercise, in conjunction with the Authority (Housing Redevelopment Authority for the City of Richfield), the powers granted to the City, and the Authority by that Act in order to achieve the objectives of that Act. ....3.02. It is further found and determined that the TiF District is a redevelopment district, and that the following conditions are reasonably distributed throughout the TIF District: a) at least 70% of the parcels of land in the-TIF District are occupied by buildings, streets, or utilities or other improvements; and b) at least 20% of the buildings are structurally substandard; and c) an additional 30% of the buildings require substantial renovation or clearance in order to move such existing conditions .and inadequate street layout, incompatible land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings. not suitable for improvement or conversation, and other hazards to health and safety identified in the TIF Plan and Redevelopment Plan. Based upon the foregoing findings and the -other evidence before it, the City Council adopted Resolution 7011 approving the ILN Redevelopment Plan. Therefore, pursuant to Council Letter No. 458, the City Council, by its Resolution No. 7114 adopted Modification No. 1 to the ILN Redevelopment Plan, to add two properties. CSM Corporation has proposed redevelopment of properties located between Emerson and Lyndale Avenues and between 77th Street and I-494 ("Shops at Lyndale Project"). All of the properties included in the Shops at Lyndale Project are part of the HRA's Interstate/Lyndale/Nicollet Redevelopment Project Area ("Project Area"), adopted October 21; 1985 ("ILN Plan") and acquisition and development of the properties which are within the Shops at Lyndale Project are in furtherance of th,e ILN Plan. CSM's proposal for the Shops at Lyndale Project was first presented to the HRA on March 14, 1994 and envisioned new development of approximately 231,000 square feet of retail space and a restaurant, plus supporting parking.. Thereafter, -the HRA approved execution of a Redevelopment Contract ("CSM Redevelopment Contract") between the HRA and CSM Corporation for development of the Shops at Lyndale Project. On April 11, -1994 and April 25, 1994 the HRA Board of Commissioners adopted its Resolutions No. 504 and 51.0, respectively, authorizing the use of eminent domain to acquire the real estate required to carry out the portion of the Shops at Lyndale Project which lies west of Colfax Avenue ("CSM Phase I") (See discussion contained in HRA Letter No. 30 and HRA Minutes of March 14, 1994 and April 11, 1994). On November 22, 1994, the HRA Board of Commissioners adopted its Resolution No. 530, authorizing use of eminent domain proceedings to acquire additional real estate for the Shops at Lyndale Project. These properties- ("CSM Phase Entry") are located under Colfax Avenue South, under West 77-1/2 Avenue, and immediately east of Colfax Avenue South, respectively, and have been- acquired to enable construction of an entry from 77th Street to the Phase I portion of the Shops at Lyndale Project (see also HRA Letters No. 74, 77 and 78 and the Minutes of the HRA. Board meeting of October 17, 1994 and November 1 and 21, 1994). In furtherance of the ILN Plan and the CSM Redevelopment Contract, the HRA and/or CSM have acquired all of the real estate contemplated to be included within the CSM Phase I development and which is required for the CSM Phase I Entry. The property which is described in the attached resolution ("Phase II Real Estate") isthe remaining real estate required for CSM to complete Phase. II (the final phase) of the Shops at Lyndale Project. Development of the Phase II Real Estate is also in furtherance of the ILN Plan and the CSM Redevelopment Contract. Recommended Motion: Adopt attached resolution which authorizes the initiation of quick-take condemnation for the Phase li site area of Shops at Lyndale. Basis of Recommendation: 1. This action is consistent with state law and the redevelopment plan. 2. The Contract For Private. Redevelopment between the HRA and CSM approved in April 1994 anticipated condemnation of the Phase II area. 3. CSM must be .able to assure prospective tenants of space availability during November or they will likely become tenants in commercial space in an adjoining community.. 4. Negotiations between CSM and some of the property owners will-negate the need for condemnation. on some parcels. It will, however, be necessary on others. 5. CSM will reimburse (or advance fund) amounts incurred by the HRA for quick take court deposits, other property owners and damages found owing to related costs as required by the contract for private development. 6. A letter was sent to all property and business owners in the Phase II area informing them of this agenda item for the February 28 meeting (copy of letter attached). Alternative Recommendation: 1. Delay action. 2. Refuse the request: Discussion/Decision Mode: HRA action on February 28 will help assure the timely availability of the Phase II site. Respectfully submitted, Jams .Prosser Executive Director JDP:cak -_ D v 6700 Portland Avenue • Richfield, Minnesota 55423-2599 City Manager Mayor Council James D. Prosser Martin Kirsch Don Priebe Michael Sandahl Susan Rosenberg Russ Susag February 13, 1995. Subject: CSM Phase II Redevelopment Area, ILN Redevelopment Project Dear Property Owner and/or Business Operator: The HRA has rescheduled their regular February meeting to Tuesday, February 28, 1995 at 7:00 P.M. in the Council Chambers at City Hall, 6700 Portland Avenue. There will be agenda items related to the CSM. development. One ofi those items will be a condemnation quick-take resolution for the Phase II area. Another item will be a public hearing on the sale of Phase II property by the HRA to CSM. The Contract for Private Development previously approved by the HRA in 1994 anticipated both of these actions. If the condemnation resolution is adopted by the HRA the court will be asked to provide title to and possession of the property by June 1,.1995. Adoption of the condemnation resolution would also-result in offers to purchase being made to property owners early in March, 1995. If you have questions prior to the meeting, please do not hesitate to call me at 861- 9760. Since ly, ,~ Byr J. allace Community Development Department BJW:js The Urban Hometown Telephone (612) 861-9700 Fax 861-9749 ,an E~uu! Opportunity Employer RESOLUTION NO. RESOLUTION OF THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA AUTHORIZING EMINENT DOMAIN PROCEEDINGS TO ACQUIRE CERTAIN REAL PROPERTY WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (the "HRA") is a housing and redevelopment authority duly constituted and organized under law, with all of the powers enumerated in Minnesota Statutes, Sections 469.001 to 469.047 (the "Act") ; and WHEREAS, the HRA is authorized to develop and carry out redevelopment plans and redevelopment projects, as those terms are respectively defined in Minnesota Statutes, Section 469.002, subdivisions 16 and 14; and WHEREAS, the HRA adopted a redevelopment plan (the "Redevelopment Plan" ) and a tax increment financing plan (the "TIF Plan") for the area in the City of Richfield generally known as the Interstate/Lyndale/Nicollet area {the "Project Area") on October 21, 1985 ; and WHEREAS, changes in the public and private improvements proposed to be constructed within the Project Area occurred and necessitated adopting subsequent modifications to the Plans, identified as Modification Nos. 1, 2, 3 and 4, which were approved by the HRA and adopted by the City Council of the City of Richfield in the respective years of 1985, 1989, 1993, and 1994; and WHEREAS, the Plans, as modified, contemplate the acquisition of certain real property (the "Property") which is located in the Project Area and which is more particularly described below in this resolution; and WHEREAS, no owners of adjacent parcels to the Property described in this resolution, displaced persons or businesses from among those properties, or other persons or businesses within the Project Area have demonstrated the technical and financial capability to carry out the proposed redevelopment in a manner and in accordance with a schedule acceptable to the HRA; and WHEREAS, the HRA has entered into a contract for private redevelopment (the "Contract") of land lying within the Project Area (including, but not limited to the Property) ; and WHEREAS, in order to meet anticipated construction deadlines for the redevelopment project contemplated by the Contract, it is necessary for the HRA to acquire title to and possession of the Property by the earliest date permitted in accordance with Minnesota Statutes, 117.042. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota as follows: 1. It is necessary to acquire the Property as described below in this resolution in order for the HRA to carry out the purposes of the Plans, as modified, and the Act, to eliminate and prevent the development or spread of conditions of CAH82635 RC125-95 1 blight found to exist by the City and the HRA and to assure full utilization of property which is vacant, unused, underused, and inappropriately used. 2. Acquisition of the Property by eminent domain, in the manner provided by Minnesota Statutes, Chapter 117, is deemed to be necessary and for a public purpose and is hereby authorized . 3. The HRA deems it necessary for the reasons set forth in the Plans, as modified, and in order to meet anticipated construction schedules, to proceed without delay under Minnesota Statutes, Section 117.042, to acquire title to and possession of the Property prior to the filing of a final report of commissioners . 4. The HRA's attorney and staff are authorized and directed to commence eminent domain proceedings to acquire fee simple absolute title to the Property, pursuant to Minnesota Statutes, Section 117.042 and to pay to the owner(s) or into court, a sum of money to secure compensation to the owners of the Property, which amount shall be equal to petitioner's approved appraisal of value for each of the respective portions of the Property, as determined by staff . 5 . The Property to be acquired is described on the attached Exhibit A . Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this day of February, 1995. ATTEST: Vern Luettinger, Secretary Thomas E. Harms, Chairperson CAH82635 RC125-95 2 EXHIBIT A (Legal Descriptions of Property to Be Acquired) Parcels 1 and 14 PID: 33-028-24-44-0082 and 33-028-24-44-0078 Address : 900 and 820 77-1 / 2 Street West Legal: That part of Lot 1, lying West of the East 10.5 feet thereof, and the East 10.34 feet of Lot 2, Block 1, STRAND-BOWEN SECOND ADDITION, Hennepin County, Minnesota Torrens Certificate No. 786331 and The west 10 feet, 6 inches of Lot 10 and all of Lot 11, Block 1, STRAND-BOWEN ADDITION TO RICHFIELD, Also the east 10.5 feet of Lot 1, Block 1, STRAND-BOWEN SECOND ADDITION all in Hennepin County Minnesota Torrens Certificate No . 802981 Together with any and all streets and alleys adjacent thereto, whether vacated or to be vacated, and together with appurtenant easements, gaps and overlaps, if any Taking: Fee simple absolute title, subject, however, to a utility easement in favor of the City of Richfield as reserved in deed Document Nos. 491673 and 491674; and subject to existing street and utility easements Parcel 2 PID: 33-028-24-44-0083 Address : 902 77-1 / 2 Street West Legal: Lot 3 and that part of Lot 2 lying west of the East 10.34 feet thereof, Block 1, STRAND-BOWEN SECOND ADDITION, Hennepin County, Minnesota Torrens Certificate No . 661709 Together with any and all streets and alleys adjacent thereto, whether vacated or to be vacated, and together with appurtenant easements, gaps and overlaps, if any Taking: Fee simple absolute title, subject, however, to existing street and utility easements Parcel 3 PID: 33-028-24-44-0084 Address : 904 77-1 / 2 Street West Legal: Lots 4 and 5, Block 1, STRAND-BOWEN SECOND ADDITION, Hennepin County, Minnesota Torrens Certificate No. 675728 Together with any and all streets and alleys adjacent thereto, whether vacated or to be vacated, and together with appurtenant easements, gaps and overlaps, if any Taking: Fee simple absolute title, subject, however, to existing street and utility easements CAH82635 RC125-95 3 Parcels 7 and 8 PID: 33-028-24-44-0088 and -0089 Address : 901 77-1 / 2 Street West and 920 78th Street West Legal: Lots 1, 2, 3 and 4, Block 2, STRAND-BOWEN SECOND ADDITION, Hennepin County, Minnesota Torrens Certificate No . 393104 and Lots 5 to 11, inclusive, Block 2, STRAND-BOWEN SECOND ADDITION, according to the recorded plat thereof, Hennepin County, Minnesota Torrens Certificate No. 526623 Together with any and all streets and alleys adjacent thereto, whether vacated or to be vacated, and together with appurtenant easements, gaps and overlaps, if any Taking: Fee simple absolute title, subject, however, to rights taken by the State of Minnesota for highway purposes as shown by Final Certificate filed June 19, 1963 as Document No. 733619; subject also to an easement in favor of Northern States Power Company dated November 26, 1965, filed November 29, 1965 as Document No. 829621; subject also to existing street and utility easements Parcels 9 and 10 PID: 33-028-24-44-0073 and 33-028-24-44-0074 Address : 800 and 804 77-1 / 2 Street West Legal: Lots 1 and 2, Block 1, STRAND-BOWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota Torrens Certificate No. 450932 and Lots 3 and 4, Block 1, STRAND-BOWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota Torrens Certificate No. 733908 Together with any and all streets and alleys adjacent thereto, whether vacated or to be vacated, and together with appurtenant easements, gaps and overlaps, if any Taking: Fee simple absolute title, subject, however, to an easement in favor of U.S. West Communications, Inc. dated December 16, 1992, filed December 28, 1992 as Document No. 2329224; subject also to existing street and utility easements Parcels 11 and 12 PID: 33-028-24-44-0075 and 33-028-24-44-0076 Address : 808 and 812 77-1 / 2 Street West Legal: Lots 5 and 6, Block 1, STRAND-BOWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota Torrens Certificate No. 542041 and Lots 7 and 8, Block 1, STRAND-BOWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota Torrens Certificate No. 685006 Together with any and all streets and alleys adjacent thereto, whether vacated or to be vacated, and together with appurtenant easements, gaps and overlaps, if any CAH82635 RC125-95 4 Taking: Fee simple absolute absolute title, subject, however, to existing street and utility easements Parcel 13 PID: 33-028-24-44-0077 Address : 816 77-1 / 2 Street West Legal: Lot 10, except the west 10 feet 6 inches thereof and all of Lot 9, Block 1, STRAND-BOWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota. Together with the easements appurtenant for party wall purposes over the west 1 foot of Lot 8, Block 1 as shown in Document No. 556318 and over the .East 6 inches of the west 10.5 feet of Lot 10, as shown in Document No. 555892, all as referred to in deed Document No . 718808, Files of Registrar of Titles . Torrens Certificate No. 770962 Together with any and all streets and alleys adjacent thereto, whether vacated or to be vacated, and together with appurtenant easements, gaps and overlaps, if any Taking: Fee simple absolute title, subject, however, to existing street and utility easements Parcels 15. 16. 17. 18 and 19 PID: 33-028-24-44-0081, -0080, -0099, -0100, -0101 Address: 819, 809, 801, 723, and 719 77-1/2 Street West Legal: Lots 8, 9, 10 and 11, Block 2, STRAND-BOWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota Torrens Certificate No. 271328 and Lots 4, 5, 6 and 7 and the west 1 foot of Lot 3, Block 2, STRAND- BOWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota Torrens Certificate No. 386122 and Lots 1 and 2; and Lot 3 except the west 1 foot thereof, Block 2, STRAND-BOWEN ADDITION TO RICHFIELD, Hennepin County, Minnesota Torrens Certificate No. 388592 and That part of the vacated Aldrich Avenue South adjoining Lot 5, Block 2, STRAND'S SECOND ADDITION TO RICHFIELD lying between the Westerly extensions across it of the South line of West 77-1 / 2 Street and the North line of Market Drive as extended to the West line of STRAND'S SECOND ADDITION TO RICHFIELD, according to the plat thereof on file or of record in the office of the Register of Deeds, Hennepin County, Minnesota Torrens Certificate No. 533220 and Lot 5, Block 2, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota Torrens Certificate No. 533221 Together with any and all streets and alleys adjacent thereto, whether vacated or to be vacated, and together with appurtenant easements, gaps and overlaps, if any CAH82635 RC125-95 rJ Taking: Fee simple absolute title, subject, however, to rights taken by the State of Minnesota for highway purposes as shown by Final Certificate filed June 19, 1963 as Document No. 733619; subject also to existing street and utility easements Parcel 20 PID: 33-028-24-44-0097 Address : 715 77-1 / 2 Street West Legal: Lot 4, Block 2, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota Torrens Certificate No. 781024 Together with any and all streets and alleys adjacent thereto, whether vacated or to be vacated, and together with appurtenant easements, gaps and overlaps, if any Taking: Fee simple absolute title, subject, however, to existing street and utility easements Parcel 21 PID: 33-028-24-44-0096 Address : 705 77-1 / 2 Street West Legal: Lots 2 and 3, Block 2, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota Torrens Certificate Nos . 225502 and 228498 Together with any and all streets and alleys adjacent thereto, whether vacated or to be vacated, and together with appurtenant easements, gaps and overlaps, if any Taking: Fee simple absolute title, subject, however, to existing street and utility easements Parcel 22 PID: 33-028-24-44-0095 Address: 701 77-1/2 Street West Legal: Lot 1, Block 2, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota Torrens Certificate No. 341268 Together with any and all streets and alleys adjacent thereto, whether vacated or to be vacated, and together with appurtenant easements, gaps and overlaps, if any Taking: Fee simple absolute title, subject, however, to existing street and utility easements Parcels 23 , 24 and 25 PID: 33-028-24-44-0092, -0093, and -0094 Address: 712, 714, and 716 77-1/2 Street West Legal: Lots 10 and 11, Block 1, STRAND'S SECOND ADDITION TO RICH- FIELD, Hennepin County, Minnesota Torrens Certificate No. 691007 and Lot 9, Block 1, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota CAH82635 RC125-95 O Torrens Certificate No. 691009 and Lot 8, except the easterly 6 inches thereof, Block 1, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota Torrens Certificate No. 691008 Together with any and all streets and alleys adjacent thereto, whether vacated or to be vacated, and together with appurtenant easements, gaps and overlaps, if any Taking: Fee simple absolute title, subject, however, to existing street and utility easements Parcel 26 PID: 33-028-24-44-0091 Address : 708 77-1 / 2 Street West Legal: Lots 6, 7 and the easterly 6 inches of Lot 8, Block 1, STRAND'S SECOND ADDITION TO RICHFIELD, Hennepin County, Minnesota Torrens Certificate No. 245518 Together with any and all streets and alleys adjacent thereto, whether vacated or to be vacated, and together with appurtenant easements, gaps and overlaps, if any Taking: Fee simple absolute title, subject, however, to existing street and utility easements Parcel A PID: None Address: None Legal: That part of West 77th Street as dedicated in the plat of STRAND- BOWEN SECOND ADDITION, which lies westerly of the northerly extension of the west line of the easterly 4.5 feet of Lot 8, Block 1, of said plat. Together with any and all streets and alleys adjacent thereto, whether vacated or to be vacated, and together with appurtenant easements, gaps and overlaps, if any Taking: Fee simple absolute title, subject, however, to existing street and utility easements CAH82635 ,, RC125-95 o '3Ad 3l~daNAl '3Ab~ H~laa~~d N r ti i ~~~ HII J "' Q ~ ~ Q Z = ~' a ao as _~ 0 Z O V F- Z i~r '3Ab~ Xt~~~O~