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07-18-94 agendaCITY OF RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MONDAY, JULY 18, 1994 COUNCIL CHAMBERS 7:00 P.M. AGENDA CALL TO ORDER APPROVAL OF MINUTES OF HRA MEETING OF JUNE 20, 1994 1. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON THE AGENDA 2. CONSIDERATION OF AUTHORIZATION TO REVISE CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN CSM AND HRA HRA LETTER N0. 47 3. CONSIDERATION OF HRA REVIEW OF ILN PHASE II REDEVELOPMENT PROPOSALS HRA LETTER NO. 48 4. CONSIDERATION OF APPROVAL OF STIPULATIONS, CONDEMNATION ACTION CSM PROJECT, PHASE I: SOUTHTOWN VILLAGE APARTMENTS, TANDEM PRESS AND EMERSON AVENUE CONGREGATIONAL CHURCH HRA LETTER NO. 49 5. CONSIDERATION OF PURCHASE AGREEMENT WITH CSM TO PROVIDE RELOCATION SITE FOR EMERSON AVENUE CONGREGATIONAL CHURCH HRA LETTER NO. 50 6. CONSIDERATION OF RICHFIELD REDISCOVERED REMODELING PROGRAM STATUS REPORT AND CONTRACT WITH JANET POSUS-RYAN FOR REMODELING ADVISOR SERVICES HRA LETTER NO. 51 7. CONSIDERATION OF PROPOSAL TO CONTINUE COMMUNITY APARTMENT PROGRAM FOR SECOND YEAR HRA LETTER NO. 52 8. CONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE OF 7424 FIFTH AVENUE TO INITIATE TRANSFORMATION HOME PROGRAM CONCEPT HRA LETTER NO. 53. 9. CONSIDERATION OF RESOLUTION AUTHORIZING ISSUANCE OF CERTIFICATES OF COMPLETION TO MARLIN GRANT HOMES INC. FOR RICHFIELD REDISCOVERED PROPERTIES AT 6912 OLIVER AVENUE AND 7124 WASHBURN AVENUE HRA LETTER N0. 54 10. CONSIDERATION OF AUTHORIZATION TO NEGOTIATE TEMPORARY USE AND OCCUPANCY AGREEMENT FOR CLOVERLEAF SITE WITH 77TH STREET PHASE II CONTRACTOR HRA LETTER NO. 55 11. EXECUTIVE DIRECTOR REPORT 12. CLAIMS AND PAYROLL ADJOURNMENT AUXILIARY AIDS FOR INDIVIDUALS WITH DISABILITIES ARE AVAILABLE UPON REQUEST. REQUESTS MUST BE MADE AT LEAST 96 HOURS IN ADVANCE TO THE ADMINISTRATIVE SERVICES DIRECTOR AT 861-9702. HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 55 Agenda July 18, 1994 Issue Statement: Authorization to negotiate a Temporary Use and Occupancy Agreement for the Cloverleaf site with the 77th Street Phase II contractor. Background: On April 19, 1993, the HRA approved the use of the Cloverleaf site for a cement batch plant for the 77th Street Project. Following the selection of Shafer Contracting Company by the MnDOT as the contractor for Phase I construction, the HRA granted the right to also use this property for road material storage and recycling. The agreement is set to expire August 11, According to the City Engineer, Shafer wi of the site by that time. Bids are to be potential Phase II contractors. The City it is likely that the Phase II contractor site for the 1994-95 construction season. 1994 (see attached). 11 have completed their use opened August 1 from Engineer has indicated that would like to utilize the Recommended Motion: Authorize staff to negotiate a Temporary Use and .Occupancy Agreement with the selected Phase II contractor which closely follows the agreement with Shafer. Basis of Recommendation: 1. The scope of the Phase II project would make the availability of a staging site desirable. 2. There is no practical alternative site available. 3. The agreement was formulated to protect the HRA and minimize any potential for liability (see the agreement in general and paragraph 10 specifically). 4. The final agreement will be brought to the HRA for approval. 5. If a developer becomes seriously interested in the site, a 90 day cancellation notice is permitted. Alternative Recommendation: 1. Refuse to authorize staff to negotiate. 2. Modify the agreement. Discussion/Decision Mode: It would be helpful to Phase II bidders to know whether the site would be available to them during the 1994-95 construction season. Resp lly submitted, Jame Prosser Execu °ve Director JDP:ds TEMPORARY USE AND OCCUPANCY AGREIIVI~TT (Cloverleaf Site) This Agreement is made this ~~day of , 1993, by and between HOUSING AND REDEVELOPMENT AUTHORITY I D FOR THE CITY OF RICHFIELD, a public body corporate and politic ("Authority" } , and SHAFER CONTRACTING COMPANY, INC., a Minnesota corporation ("Contractor"). Recitals A. The Authority is the owner of certain land ("Site") located at the northeast quadrant of the intersection of Interstates 35W and 494 in the City of Richfield, legally described on the attached Exhibit A. B . Contractor has entered into a contract ("77th Street Contract") with the State of Minnesota Department of Transportation for the construction of improvements to 77th Street in the City of .Richfield . In order to perform Contractor's obligations under the 77th Street Contract, Contractor requires the use of the Site for location and operation of a portable cement batch mixing plant (Batch Plant) and for the location and operation of a portable asphalt and concrete recycling plant (Recycling Plant) . C . Authority and Contractor desire to enter into an Agreement to permit Contractor's use of the Site, subject to the following terms and conditions. Agreement In consideration of the mutual covenants contained herein, and one dollar, receipt of which is hereby acknowledged by Authority, the parties agree as follows 1. Use of Site. The Authority hereby grants to Contractor the right to enter upon and use the Site for the placement and operation of a portable cement batch mixing plant (Batch Plant) and asphalt and concrete recycling plant (Recycling Plant) , together with the right of ingress and egress over and across those portions of the Site which are depicted on the attached Exhibit B . The Batch Plant may be used for no other purposes than the making of cement to be used in connection with the 77th Street Contract. The Racyc'.i:.g Pla„t may be "sed for no other purposes than the recycling of asphalt and concrete in connection with the 77th Street Contract . 2 . Plant location; tniti~ation of adverse impacts . The Batch Plant and Recycling Plant must be located within that portion of the Site which is depicted on Exhibit B . Contractor will stockpile materials to be recycled in the area identified on Exhibit B . The stockpiles must be enclosed by a snow fence or appropriate substitute which is designed and placed in a manner to exclude intruders from the stockpiles. At any time during the term of this Agreement, the Authority may require additional mitigative measures which, in the Authority's reasonable judgment, are deemed necessary to reduce the adverse impacts of the Batch Plant and Recycling Plant on neighboring properties (e. g. , noise, dust, odor, vibrations and light) . 3. Removal of Plant During Non-Use. Contractor will remove the Batch Plant from the Site during any period of 15 or more consecutive days when the Batch Plant will not be in operation . CAH55709 RC160-4 4. Hours of Operation. Contractor will operate the Batch Plant and Recycling Plant (including run-up time and maintenance procedures) in compliance with the requirements of Section 930.09 of the Richfield City Code or variance, if any, granted under Section 930.35 of the Richfield City Code . 5 . Condition of Site . Contractor acknowledges that it has had an opportunity to inspect the Site and accepts the Site "AS IS." The Authority makes no representa- tion regarding the suitability of the Site for the intended activities, or the availability of appropriate utility services needed in connection with the Contractor's operations.. Contractor acknowledges that it is responsible for satisfying itself with respect to these matters and for making all necessary arrangements with utility suppliers, including matters relating to fees and charges, metering, connections and permits . 6. Water Wells. If Contractor intends to install a water well on the Site, it must obtain all required permits and approvals, and the consent of Authority as to the location of any water well. Authority may require that Contractor post a bond or other security reasonably acceptable to Authority, to assure Authority that Contractor will properly remove and seal the well upon termination of this Agree- ment. Contractor agrees to indemnify and hold harmless Authority from all claims, damages, costs, and expenses, including reasonable attorney fees, that Authority may suffer or incur as a result of Contractor's failure to properly remove and seal the well . 7. Pollution; indemnification. Contractor agrees not to release or discharge any hazardous wastes, contaminants or pollutants on the Site; if such releases or discharges occur, Contractor agrees to cooperate with all government agencies having jurisdiction over such matters and to fully comply with the directives of such agencies regarding clean-up and remediation of the Site . Contractor agrees to indemnify and hold harmless Authority from any such release or discharge. 8. Site Restoration. Upon termination of this Agreement, Contractor will remove all rubbish, debris, materials, and equipment placed on the Site as a result of its activities, and will restore the Site to its prior condition. Contractor shall not locate the Batch Plant or Recycling Plant on Site until Contractor has furnished Authority with a performance bond in the amount of $50, 000.00, to secure Contractor's performance under this paragraph. 9. Insurance. Contractor agrees to obtain Public Liability and Property Damage Insurance, naming the Contractor and the Authority as joint assureds, and with a cross liability endorsement protecting the City of Richfield from claims or damages for personal injuries, including accidental death, as well as for claims for property damage which may arise from operation of the Batch Plant and/or Recycling Plant, whether such operations be by the Contractor "or by a subcontractor or by anyone directly or indirectly employed by either of them. Said Public Liability and Public Property Damage Insurance policy shall provide that the insurance company waives the right to assert the immunity of the Authority as a defense to any claims made under said insurance. The amount of the insurance will be as follows: Public Liability Insurance in an amount of not less than One Million Dollars ($1,000,000.00) for all damages arising out of bodily injuries to, or death of one person and subject to the same limit for each person in a total amount of not less than One Million Dollars ($1, 000, 000.00) on account of one accident, and property damage insurance in an amount not less than One Million Dollars ($1,000,000.00) for all damages to or destruction of property in any one accident and subject to that limit, a total limit of CAH55709 RC160-4 2 One Million Dollars ($1, 000, 0000.00) for all damages to or destruction of property during the policy period 10. Indemnification. Contractor agrees to indemnify and hold Authority, its officers and employees, harmless from all claims, damages, costs or expenses, including reasonable attorney fees, which arise out of the Contractor's activities on the Site . 11. Safety. Contractor must conduct its activities on the Site in a manner which is reasonably safe and shall at all times maintain the Site in a reasonably safe condition . 12 . No liens . Contractor will not permit or suffer any liens or other encumbrances to be placed on the Site as a result of its activities and agrees to defend, indemnify and hold Authority harmless from any such liens or encumbrances . 13. Term of Agreement. This Agreement will terminate one year after the date written above, except as provided in this paragraph. Authority, in its sole discretion, may extend the term of this Agreement by executing a written document to that effect. Authority may terminate this A"greement at any time during its term or extended term: (a) for any material breach of this Agreement by Contractor, such termination to be effective upon written notice by Authority to Contractor of the breach; and (b) for any or no reason, such termination to be effective 90 days after written notice by Authority to. Contractor . IN WITNESS WHEREOF, the parties have executed this Agreement on the date and year written above . CONTRACTOR S'-'t- ~^"`~ ~' / ~~ ' Its -~.._,..~c-~•.-., By Its HOUSING AND REDEVELOPMENT AUTHORITY IN AND~R THE CITY OF RICHFIELD By. 'JV ~~~G ~~ ` C Its , In •~, ~ ~--~ B CAH55709 RC160-4 3 ,: STATE OF MINNESOTA ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this 12th day of August ,1993 by George W. Mattson and Brad Mattson , the ___Secretary_______ and _Vice-_P_r_es_ident_ __, respectively, of Shafer Cantractin~ Co., , a Minnesota Corporation ,~~ S. J. NEILS Notary Pfxblic ..~~f ~,i~ NOTARY PUBLIC -MINNESOTA ':tit WASHINGTON COUNTY My Comm. Exp. Apr. i t, tA94 STATE OF MINNESOTA ) } SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of u ~~ 1993 byTh^)vJas ~ .N~Y'/'1'15 and ~ ry~~~, "^~,: ~4~ , the chair rson and executive director, respectively, of Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of Minnesota. ..~•r+~• MY ~pxet 4897 rL ~. - r C~~'~ C- Not. ry P lic ~i CAH55709 RC160-d 4 EXHIBIT A (Legal Description of Site) PARCEL 1: The West 1 / 2 of the East 1 / 2 of the Northwest 1 /4 of the Southwest 1 /4 of the Southeast 1 /4 of Section 33, Township 28, Range 24 excepting roads . PARCEL 2 : The East 1 / 2 of the East 1 / 2 of the Northwest 1 /4 of the Southwest 1 /4 of the Southeast 1/4 of Section 33, Township 28, Range 24 AND the West 1/2 of the West 1 / 2 of the Northeast 1 /4 of the Southwest 1 /4 of the Southeast 1 /4 of Section 33, Township 28, Range 24 excepting roads. PARCEL 3 : The East 1 / 2 of the Southwest 1 /4 of the Southwest 1 /4 of the Southeast 1 /4 of Section 33, Township 28, Range 24 AND The West 1 / 2 of the Southeast 1 /4 of the Southwest 1 /4 of the Southeast 1 /4 of Section 33, Township 28, Range 24, except that part taken for road and being described as that part of said Southwest Quarter of the Southeast Quarter which lies Southwesterly of a line running parallel with a distance of 75 feet Northeasterly of the following described line : From the Southwest corner of said Section 33, running Easterly on a line which would pass through the South quarter corner of said Section 33, for 4069.1 feet to the point of beginning of the line to be described; thence running Westerly along the last above described course for 321.17 feet; thence deflecting to the right at an angle of 90 degrees 00 minutes for 1.5 feet; thence deflecting to the left at an angle of 90 degrees 00 minutes for 100 feet; thence deflecting to the right on a 10 degree 00 minutes curve, delta angle, 38 degrees 57 minutes for 389.5 feet; thence deflecting to the right on a 1 degree 00 minutes curve, delta angle 6 degrees 32 minutes 18 seconds for 600 feet and there terminating. Also except street easement per Document No. 3214864. PARCEL 4 : All that part of the East 1 / 2 of the West 1 / 2 of the Northeast 1 /4 of the Southwest 1 /4 of the Southeast 1 /4 of Section 33, Township 28, Range 24, lying South of the North 315 feet thereof, except the east 30 feet thereof . Containing 13.436 acres more or less . CAH55709 RC160-6 rj Vtil• ~.~.~.~~ gyp.. uu~!~r~,~a'~'•b+ . ~~~~.J~JiGI UL{I~ , U- U-3J ~~1.y{~'~~1 r V~W~ ~$~ ~~ « , c~tir,~l; , onr,~ cn. ~u~unH~;:!vU~ ~a~~-~~yv~ar+wwv 0'I[ X761 3'1»y;A VVI r '+ ra ~a i -~ ~ clsst•~tcagasLa ,»w s~ ~ j `oag . .:.r ~ , /E1$iT' ~ p.~ - 1 i i ..,, _ . ........ ...,,_ ....... ,.....: ........ ,~~t V • ~ - wr ~~r~•...w.~w~~n ir~wr~ww'~wr r•r . t +~ • ~"' y ~ ~ `. i ~ t ~ i ~~~ M • ~ 4 . { t~= r. ~ , ~ f ! ~ • %~ f ti "~~ iil . " +~,~ f ~+ • wu • ~ `~ f~"ti'~ .. i' ' f ~, h, •. ,* ,. ~~ sort ~ • ~ t•/- i { i~ . iJ~'J~/ 1 'M~ S i ~~1j+ .." ~i t aw ~~~ i ~~ ! ~ 1 _~ i ~ S •- .,,~,.~„ i ~ w~a t • h 1 .~ h A I~~ '~ ty .. ,, .~ rte. , ..~. i,r~ .~r• ~aae~•l~" bnt~d fi~.tr~r~omltta~,M~mo ~t •or'y.w . ` ••~~ !~ .. ~ , `' n~i. ~ -- '7'7 ~ ~ --~r- HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 54 Agenda July 1$, 1994 Issue Statement: Authorization to issue Certificates of Completion to Marlin Grant Homes Inc. for Richfield Rediscovered properties at 6912 Oliver and 7124 Washburn Avenues. Background: The HRA authorized development of the above referenced properties in 1993. The development agreements provide for the issuance of a Certification of Completion when construction is completed. (A sample certificate is attached.) The homes have been completed and occupied. The builder has requested the completion certificates and the release of the letters of credit now that the homes are completed and the sales have closed. Recommended Motion: Authorize the Chair and Executive Director to execute Certificates of Completion in accordance with the attached resolution. Basis of Recommendation: 1. Construction has been completed and certificates of occupancy issued by the ..Inspection Division. Site work has been completed, including concrete, driveway and landscaping work. 2. The builder has performed in accordance with the construction agreements and will seek the issuance of completion certificates and the release of performance security in the following amounts: Property Performance Builder Address Security Amount Marlin Grant Homes, Inc. 6912 Oliver $31,000 7124 Washburn 527,500 Alternative Recommendation: Do not issue Certificates of Completion at this time. Discussion/Decision Mode: The builder has completed the work, per the development agreements. Resp lly submitted, Jam D. Prosser Executive Director JDP:ds HRA RESOLUTION NO. RESOLUTION RELATING TO THE ISSUANCE CERTIFICATES OF COMPLETION. FOR RICHFIELD REDISCOVERED PROPERTIES AT 6912 OLIVER AND 7124 WASHBURN AVENUES WHEREAS, in 1993, the Richfield Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA) entered into development contracts with Marlin Grant Homes, Inc. for the construction of two single-family homes; and WHEREAS, the new home locations are as follows: 6912 Oliver and 7124 Washburn Avenues; and WHEREAS, the construction is completed; and WHEREAS, performance security in the following amounts can be released to Marlin Grant Homes, Inc.: 6912 Oliver Avenue - 531,000 7124 Washburn Avenue - $27,500 NOW, THEREFORE, BE IT RESOLVED by the Richfield Housing and Redevelopment Authority in and for the City of Richfield,. Minnesota that: 1. The completion certificates for 6912 Oliver and 7124 Washburn can be issued. 2. The performance security can be released for each property upon issuance of the completion certificates. Passed by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 18th day of July 1994. Thomas E. Harms, Chair ATTEST: Vern Luettinger, Secretary EXHIBIT A FORM OF CERTIFICATE OF COMPLETION The undersigned hereby certifies that , has fully and completely complied with. its obligations under Article IV of that document entitled "Contract for Private Development°', between the Housing and Redevelopment Authority in and for the-City of Richfield, Minnesota and dated filed as Document No. with respect to construction of the approved construction plans and is released and forever discharged from its obligations to construct under such above- referenced Article. DATED: THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD By Its Chair By STATE OF MINNESOTA COUNTY OF HENNEPIN Its Executive Director SS The foregoing instrument was acknowledged before me this _ day of 19_, by and the Chairperson and Executive Director of The Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota on behalf of the public body corporate and politic. Notary Public This instrument was drafted by: Holmes & Graven, Chartered 470 Pillsbury Center Minneapolis, MN 55402 HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 53 July 18, 1994 Issue Statement: Authorization to purchase 7424 Fifth Avenue to initiate a transformation home program concept. Background: The HRA's first transformation project at 6500 James Avenue was a success in 1993. During 1994, staff has been exploring additional transformation activity. The HRA has processed loans of 538,239 to four homeowners to assist in transforming homes with remodeling contracts totaling 5253,254. Program contractors are Parsley, Sharpe, Dimension Builders and QSA. (Staff has also had discussions with Richfield Bank. and Trust/Richfield State Agency representatives. They have an interest and sufficient resources to purchase and remodel one or two homes annually.) While inspecting property for the Richfield Rediscovered New Construction program, staff identified a property which has some deficiencies but may not warrant a purchase-demolition response by the HRA. The fair market value, as determined for the HRA by BCL Appraisals, is $67,000. It is proposed that the HRA purchase the property for $67,000, contingent on identifying a transformation contractor. The property would then be discounted to the contractor for $52,000. A 5120,000 to 5130,000 remodeled home could be provided by transformation. The HRA could also be requested to provide a 15% of contract transformation loan at some point. A loan would not exceed 515,000. Recommended Motion: Authorize staff to purchase 7424 Fifth Avenue for 567,000 provided a transformation developer can be identified. Basis of Recommendation: 1. The home has been appraised at $67,000 by BCL Appraisals. It has deficiencies which give limited appeal in the market place. 2. It is not cost effective to tear down and build new construction. 3. The home has been vacant for some time and, as a long time rental property, has experienced a transient and troublesome tenancy for Public Safety. 4. At a recent City Council public hearing on the Richfield Rediscovered property subdivision at 7416 Fourth Avenue, the property at 7424 Fifth Avenue was cited as a troublesome vacant house for the neighborhood. 5. The home is for sale at the 567,000 fair market value. 6. A transformation program response returns a desirable end product to the neighborhood. Alternative Recommendation: Do not purchase 7424 Fifth Avenue to proceed with a transformation concept in cooperation with an interested developer. Discussion/Decision Mode: Purchase would be contingent on identifying a developer. A transformation development agreement would be brought to the HRA for consideration once a developer was identified. Respect lly submitted, Jam D. Prosser Exe tive Director JDP:ds HRA RESOLUTION NO. RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 7424 FIFTH AVENUE WHEREAS, the Housing and Redevelopment Authority in and for .the City of Richfield Minnesota (HRA) desires to purchase certain real property pursuant to and in furtherance of the Richfield Rediscovered Transformation Program heretofore adopted by the HRA; said real property being described as follows: 7424 Fifth: The East 1/2 of the South 59.45 ft of the North 446.15 ft. of the West 1/2 of the Northeast 1/4 of the Northeast 1/4 of the Southeast 1/4, except road; Hennepin County. WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to acquire real property within its area of operation; and WHEREAS, the property meets program requirements for acquisition; and WHEREAS, the HRA has caused appraisals of the subject property to be made by a qualified independent professional real estate appraiser and has negotiated a purchase price with the owners based on the stated value; and WHEREAS, funds have been provided by the HRA and are available for acquisition; and WHEREAS, this acquisition is contingent on identifying a contractor to transform/remodel the home. NOW, THEREFORE, BE IT RESOLVED by the Richfield Housing and Redevelopment Authority: 1. That purchase price is approved at the appraisal value of 567,000. 2. That the Chair and Executive Director are authorized to execute a Purchase Agreement and other documents to effectuate purchase for the amount set forth in this resolution. 3. Those agreements must state that the purchase is contingent on the HRA approving of a transformation/remodeling concept with a contractor. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield Minnesota this 18th day of July, 1994. ATTEST: Thomas E. Harms, Chair Vern Luettinger, Secretary HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 52 Agenda July 18, 1994 Issue Statement: Proposal to continue the Community Apartment Program (CAP) for a second year. Background• At the May•HRA meeting, Project for Pride In Living (PPL) representative Laura Klein and Affordable Suburban Housing representative (ASH) Bill Schatzlein presented an in depth status report of their activities on the CAP since its beginning in September 1993. (Both Laura and Bill will be in attendance at the July HRA meeting.) The contract under which PPL and ASH administer the program will expire at the end of August. The July HRA meeting would be an appropriate time to consider continuation of the contract for a second year. Several attachments provide background information: 1. 1993-94 Summary of Accomplishments. 2. Material related to Richfield Apt. Owners and Managers Association (RAMA). This has been a very successful effort and required considerable time. RAMA meeting flyers, a RAMA newsletter and Mission Statement are included. Also attached is the form which an apartment owner/manager can submit to obtain information on police calls (Request for Police Activity Data). One very tangible result of RAMA has been the much improved relationships between apartment. owners/managers and police. 3. 1994-95 Program Proposal The proposal envisions five outcomes which have been reviewed by staff and are incorporated into the attached contract (the contract is virtually the same as last year's). a. Continue to work with plan). b. Continue collaborative organizations. c. Analyze and distribute survey. RAMA (see detail of marketing efforts with other results of rental resident d. Implement apartment finance information program (see program detail). e. Develop model for rental resident councils. A budget for the second year is also included at 544,000. These funds are available from the development fund (The existing budget is 550,000 with billings through June approximately 532,000. There will be a fund balance at the end of the first year). Recommended Motion: Approve the execution of a contract with PPL and ASH for the continuation of the second year of the Community Apartment Program. Basis of Recommendation: 1. The first year of the CAP has been successful. 2. As the five outcomes proposed for the second year indicate, there is a need to continue the momentum, 3. Both, PPL and ASH have performed well. 4. Funds for continuation of the program are available from the development fund. Alternative Recommendation: 1. Delay action. 2. Propose revisions to the year two program. 3. Direct staff to select another organization to recommend to the HRA as program administrator at a future date. Discussion/Decision Mode: The existing contract expires August 31, 1994. Respectfu submitted, James D. Prosser Execu e Director JDP:ds PROJECT FOR PRIDE IN LIVING, INC. 2516 Chicago Avenue South Minneapolis, Minnesota 55404 Telephone (612) 874-8511 FAX (612) 874-6444 Give me a fish and I eat for a day; teach me to fish and 1 eat for a lifetime. July 1, 1994 Bruce Palmborg, Richfield HRA Coordinator 6700 Portland Richfield, MN 55423 ' Dear Mr. Palmborg: Re: 1993-94 Community Apartment Program Summary of Accomplishments Project for Pride in Living (PPL), in partnership with Affordable Suburban Housing (ASH), is pleased to report that during the first year we were able to accomplish several important goals. The Richfield Apartment Owners/Managers group was formed with over 3500 Richfield apartments units represented at the bi-monthly General Membership Meetings. Attendance at the General Membership meetings has averaged 47 owners/managers per meeting. To our knowledge, this has been the highest attendance of the metro area owners and managers associations. Another important accomplishment is the building of partnerships between agencies, organizations, city services and the apartment owners/manager association. Churches, City Services, and Social Service agencies have begun building close working relationships with apartment owners and managers because of our efforts. City Departments and other agencies have begun doing on-site delivery of informational packets where one-on-one contact is being made with apartment renters. Enclosed is a summary of accomplishments of 1993-1994 year, along with attachments. We have enjoyed our work in Richfield and look forward to working with you another year. Yours tru~y; ~. _.~`. :..aura Klein Community Initiative Manager Project for Pride in Living 874-8511 Bill Schatzlein Executive Director Affordable Suburban Housing Inc. 824-1628 COMMUNITY APARTMENT PROGRAM ACCOMPLISHMENTS OF THE 1994 RICHFIELD HRA July 1, 1994 PURPOSE OF 1993-94 CONTRACT Project for Pride in Living, Inc. (PPL), in partnership with Affordable Suburban Housing, proposed to work with the City of Richfield to assess, plan, and offer unplementation resources that will improve the liveability, appearance, and investment value of Richfield apartment dwellings while empowering residents to become actively involved in their buildings and community. . Outcome One: A profile of the current population of apartment residents in Richfield will be developed that will aid in directing plans to achieve our goal. (Duplication of efforts will be avoided.) Results * All surveys of Richfield residents that had been completed within the last two years were reviewed prior to beginning survey tool. ' * Decision Resources Inc. has been contracted to survey 250 Richfield apartment residents with a 60 question survey via telephone interviews. * Final survey instrument was completed on 6/10/94 and forwarded to Decision Resources Inc. for calling. * Random sample of S00 Richfield rental residents have been identified with phone numbers. Outcome Two: An organization of apartment owners/managers will be established that will support efforts to maintain decent, low-cost housing that is financially viable. Results * Richfield Apartment Owners & Managers Association (RAMA) has been established since October 1993. * Members of RAMA have organized the Executive Committee and sub-committees. * Executive Committee has created the RAMA Mission Statement (See attached). * Developed and defined a useable database of an owners and managers mailing and calling lists for outreach and information distribution. * Four General Membership meetings have been hosted by RAMA, to educate the owners and managers of Richfield rental units on important topics such as City Services, Civil Rights, Fair Housing and Discrimination. * Over sixty owners and managers have attended the General Membership meetings and over 3500 Richfield Apartment units have been represented at RAMA General membership Meetings. * Invitations to the RAMA General Membership Meetings have been extended to City Staff, Richfield City Council, Richfield Human Services Council, HRA Commissioners and the Richfield Chamber of Commerce (See Attached). * A Marketing Plan has been established and is carried out by RAMA's Outreach Committee and the consultant team(See Attached). * RAMA has created a bi-monthly newsletter mailed to all Richfield owners and managers to educate them on membership meeting topics, crime prevention tips, city and social services and managers sharing helpful hints with each other (See Attached). * RAMA has been used as the forum for the Richfield Police Dept to meet with property owners and managers to review building 911 reports and other concerns. A report request form has been available at each membership meeting. The request for building information from Public Safety is given to two Police officers who meet with the manager at the building site to review 911 activity one-on-one (See Attached). * RAMA has requested $5000, as a one year budget from the Richfield Foundation to support the operating costs including newsletters and mailings (See Attached). Additional Results * RAMA members have collaborated with the Richfield Community Education and the Richfield Parks and Recreation to establish a summer program to register apartment youth in Community Education (Enrichment Program) and Parks and Recreation,ie., parks, pool, nature center. * Apartment managers surveyed apartment residents to determine their interest and need in summer program. 2 * Community Education and Park and Recreation program provides information about programs including the availability of transportation for students. * Apartment managers from four complexes, Community Education and Richfield Park and Recreation worked together to write up a proposal for the summer programming costs and submitted it to Community Action for Suburban Hennepin (C.A.S.H). The grant was denied. However, with the relationships already developed, Community Education, Parks and Recreation and the apartment managers worked together to register youth at their apartment complexes to increase participation in Summer Enrichment and Parks and Recreation summer programs (See Attached). Outcome Three• A model for multi-unit dwelling Resident Organizations will be developed. Results * The consultants have been building relationships with the property owners and managers. ' * As these relationships continue to develop we will work to identify an apartment complex where a model resident council can be established based on an agreement with the owner. * Organization of the model will be dependent upon the approval of owners and managers. The purpose of the councils is to increase communication between owners/managers and residents. * Council model will also be used as a vehicle to provide resources" and other information. Outcome Four• A directory of Richfield Human Services and Educational Opportunities will be developed that includes: a description of services/programs offered; eligible participants; location; hours; cost; and available transportation. To the extent possible, existing information will be utilized. Results * After meeting with a variety of community agencies, ie, Community Education, City Departments, Chamber of Commerce, Bloomington/Richfield Family Center, consultants, city employees, service providers and property owners and managers found that there were many directories already available. 3 * Increasing the accessibility to directories would be a better use of time and money rather than creating a new directory. Outcome Five• A Community Services Group will be formed to link the City of Richfield, apartment ownerslmanagers association, human service organizations, educational institutions, and resident groups in order to create networks for community building through communication, promote positive working relationships, improve the delivery of services to residents, and improve the livability of Richfield apartments. A determination will be made about which services/programs could be brought to housing sites or neighborhood locations. Results * We have initiated several collaborative efforts between RAMA and a variety of community agencies: - Various City departments were invited as guest speakers at RAMA General Membership meetings. - Chamber of Commerce Board met with RAMA Executive Committee to explore joint marketing and promotional ventures. - Richfield churches were invited to a focus group to brainstorm about the role of churches in outreach to apartment residents. * Once relationships between agencies and organizations have been further developed, a Community Services Group will be formed in the second year of the contract, Other Activities Apartment Finance Information Program We organized a meeting of City staff, public and private lenders to explore mortgage financing programs that are available. As a result of this initial meeting we have developed an outline for the Apartment Finance Program (See Attached). Churches Adopt-an-Apartment Program Met with Richfield area churches to explore opportunities for churches to become involved in outreach activities to apartment residents. 4 Are you looking for ways to~.. .find and keep good residents? Are you looking for ways to.N .increase your profitability?. Are you looking for ways to... . .solve property management problems? We are excited to announce that the Richfield Apartment Owners & Managers Association (RAMA) is "off the ground and up and running". It all started with that first meeting last October! This group is working with the City of Richfield to help apartment owners and managers meet the challenges of property management in the 90's. Mark your calendars...the first RAMA general meeting of the new year is scheduled for: Date: Tuesday, January 11 Time: 10 a.m. Place: House of Prayer Lutheran Church 7625 Chicago Avenue Find out what services/resources are available to you through the City to help you meet the challenges of today. We were surprised and we think you will be too! ~ Public Safety -Find out how you can obtain police reports on your property. ^ How SAFE HOUSE works. How inspections can work to your advantage. ~ ^ Human Services -What do you do when there is domestic or child abuse? ^ Where can you get rental assistance to help the needy? ^ ^ ^ Community Development -How does Section 8 work? What are the other programs? How can it help me? ^ Community Services -What recreational programs are available for your ^ ^ ^ residents? How can the programs/activities save wear and tear on my property? ^ Find out how RAMA works and how you can become a part of making it all happen. At the meeting sign up to get a complete listing and personal overview of the police calls made to your apartment communities. Make new acquaintances~.get new ideas! RAMA needs you_YOU need RAMA RF-RAMA lnvice+•3 JlBLt/IQ3WWI N3d0 s~a6euew ~uauu~.~edd ~ pue s~aunnp ~uauu~~edd N011N311~d Richfield Apartment Owners ~ Managers Association 2516 Chicago Ave. Minneapolis, MN 55404 Attn: Laura Klein 874-8511 TO: .................................................................. s~~ouy~ ~~.iun~~oddp ~~ ~~enuer°°s~epua~e~ ~no~ ~~ew .................................................................: P:AMA Richfield Owners & Managers Apartment Association Presents "Fair Housing" Discrimination: What it ~ & What it isn' ~ How will HUD testing of Rental Practices affect you? Who is exempt from Fair Housing Compliance? Information on tenant selection to tenant eviction! Come find out the information you need to protect yourself: Date : Tuesday, March 8 Time: 4:30 PM Place : Richfield Community Center 70th & Nicollet Avenue Bill Brock from the Minneapolispartment of Civil Rights will review: * Advertising * Tenant Selection * Protected Categories * Compliance Exemption * Handling Complaints Bill's presentation will allow time for specific questions and answers about Fair Housing and your experiences . Donna is well known in the industry for her expertise in tenant- landlord law and practices in the area of defending landlords and tenants charged with discrimination. Her lively and interesting discussion will examine issues such as • federal, state and local laws, • protected groups, • conduct covered, • possible penalties, • common pitfalls, • tenant screening and occupancy standards, • sales recomendations and steering, • accomodating persons with disabilities and • avoiding complaints. Fair housing continuing education credits are required in 1994!!! Real estate credits have been applied for and this seminar is free. WHAT AN OPPORTUNITY!!! This is the first of a three part series Donna will present for RAMA. In July she will speak on Leasing and Screening and in September it will be Evictions from Start to Finish. We invite you to become involved in RAMA. As a property owner and/or manager, it is important to to your business and time well spent. It's Free It's Important ... It's Educational ... May 17th, Richfield Community Center, 4-6 p.m., RAMA Meeting R~ehfie~d .Apartment owners ~ Mhnagers Association It~vi.#e~ Yau TO A#ter~cl .c~, FR~~ Serrai~nar: Lecssln® Credit Record Statutory Terms '~ Security deposits ~ Application Requirements This seminar is FREE. Reai estate credits applied for. Topics covered will include: ~ Minimum Income Density Limits Alterations Rental History ~ Oral Leases ~ Notices 'iluesday, July 12, 1994 4:00* to 6:00 P.M. 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Richfield Apartment Owners & Managers Associaton Mission Statement "TO ENHANCE THE IMAGE, QUALITY OF LIFE AND PRIDE IN RICHFIELD BY ISOLATING AND TAKING POSITIVE ACTION ON REAL AND PERCEIVED PROBLEMS. THROUGH COMMUNICATION AND' COOPERATION BETWEEN MULTI- HOUSING MANAGEMENT/OWNERSHIP, THE CITY AND BUSINESS COMMUNITY. 1) To provide avenues of communication and cooperation between the City,. business community and multi-family management and owners. 2) To reduce and eliminate real and perceived problems in Richfield's multi-housing properties thus enhancing the image of Richfield as a safe community in which to live, play, work and do business. 3) To encourage responsible multi-housing management/ownership through communication, collaboration and education. • 4) To maintain property values and tax base. Multi-housing management/ownership, the City and business community factually working together to make Richfield's multi-housing properties a safe, secure and profitable endeavor and quality environment in which to live. valuable Final Products: 1) Full and profitable multi-housing properties in Richfield. 2) A safe and secure environment for Richfield residents. 3) Effective communication, collaboration and cooper- ation between the City, business community and multi-housing management that results in the elimination of problems and enhancement of the quality of life in Richfield. -~- f Y t ,~ REQUEST FOR POLICE ACTIVITY DATA ,F Nasne: Phoae: Mail to: . j, stroa city ~e nP Please send me police calls for buildings at the following addresses: Name of apartment complex (if applicable): Please include calls for the month(s) of: PROFESSIONAL SERVICE AGREEMENT COMMUNITY APARTMENT PROGRAM THIS AGREEMENT made and entered into by and between the Housing and Redevelopment Authority In and For The City of Richfield, STATE OF MINNESOTA, hereinafter referred to as the HRA, and Project For Pride In Living, Inc., Minneapolis, and Affordable Suburban Housing, Minneapolis, hereinafter referred to as PPL/ASH. WITNESSETHe WHEREAS, the HRA wishes to purchase the services of PPL/ASH; 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 PPL/ASH agree as follows: 1 . TERMS AND COST __OF__ THE _AGREEMENT PPL/ASH agrees to furnish services to the HRA to pursue those - outcomes (objectives) within the identified time period as _ indicated on the attached Exhibit A dated July 5, 1994. The total cost of this agreement shall not exceed 544,000 during the first year. All reports, memos, and other data produced by PPL/ASH become the property of, the HRA. 2. PAYMENT FOR SERVICES Invoices for services performed shall be combined by PPL/ASH into one statement. Invoices may be submitted monthly. Payment for services shall be made directly to PPL 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 PPL/ASH 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 PPL/ASH and the HRA or as constituting PPL/ASH as the agent, representative, or employee of the HRA for any purpose or in any manner whatsoever. PPL/ASH is to be and shall remain an independent contractor with respect to all services performed under this Agreement. PPL/ASH represents that it has or will secure as its own expense all personnel required in performing services under this Agreement. Any and all personnel of PPL/ASH 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 may or might arise under the Unemployment Compensation Act or the Worker's Compensation Act of the State of Minnesota on behalf of said .personnel, arising out of employment or alleged employment, including, without limitation, claims of discrimination against PPL/ASH, its officers, agents, contractors, or employees shall in no way be the responsibility of the HRA. PPL/ASH 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 performed 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. PPL 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 Equal Employment Opportunity/Affirmative Action Policies with regard to employment and contracting (See Exhibit B). 5. INDEMNITY AND INSURANCE PPL/ASH agrees to defend, indemnify, and hold the HRA, its officers, and employees harmless from any liability claims, damages, costs, judgements, or expenses, including reasonable attorney fees, resulting directly or indirectly from an act or omission (including without limitation professional errors or omissions) of PPL/ASH, its agents, employees, or assignees in performance of the services provided by this contract, and against all loss by reason of the failure of PPL/ASH to fully perform in any respect, all obligations under this contract. 6. DATA PRIVACY PPL/ASH agrees to abide by all 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. 2 ~, RECORDS - AVAILABILITY PPL/ASH 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 PPL/ASH 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 PPL/ASH 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. 10. DEFAULT AND CANCELLATION a. If PPL/ASH 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 City'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 cancelled with or without cause by either party upon twenty (20) days written notice. 3 11. CONTRACT ADMINISTRATION In order to coordinate the services of PPL/ASH 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 and serve as liaison between the HRA. and PPL/ASH. In addition, from time to time, meetings shall be held between PPL/ASH and the Community Apartment Program Team. PPL/ASH may also report directly to the HRA Board of Commissioners. 12. NOTICES Any notice or demand which must be given or made by a party hereto under the terms of this Agreement shall be in writing.. Notices shall be sent as follows: To the HRA; To PPL/ASH; Bruce Palmborg Susan Baldwin Housing & Redevelopment Coordinator Director of Operations City Hall Project For Pride In 6700 Portland .Avenue Living Richfield, MN 55423 2516 Chicago Ave. So. Mpls., MN 55404 _ PPL/ASH having signed this contract, and the HRA having duly approved this contract on July 18, 1994, 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 beginning September 1, 1994 for a period of twelve months or until terminated as provided above. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD STATE OF MINNESOTA By: By: Executive Director Attest Chairperson Attest Project For Pride In Living, Inc. By' Attest Its Affordable Suburban Housing, Inc. By' Attest Its 4 EXHIBIT A (Page 1 "of 7 ) PROJECT FOR PRIDE IN LIVING, INC. 2516 Chicago Avenue South. Minneapolis, MN 55404 Telephone (612) 874-8511 `' (612) 874-6444 BOARD OF DIRECTORS AND OFFICERS Patrick J. Aylward, Secretary Douglas M. Baker Elsa J. Batica Diane M. Berthel Cathy Borer, Asst Secretary AI Brown John Butler David A. Byfield Cartrell Cooper Lincoln S. Davis Virginia Y. Davis Evelyn Franklin Charles A. Geer Peter J. Gillen John M. Hartwell, Treasurer Samuel D. Heins Doug Hile Harlan Hogsven James A. Howard Andrew G. Humphrey Orlena A. Iversen, Vice Chair Margaret Jones John J. Kerwin Jay Kiedrowski, Chair Mary Lieder Marie Manthey Ann M. Melendez W.H. Nelson, Jr. Carolyn E. Olson Kevin Pedelty Walter Pratt Toby Rapson Nancy Reeves ~'^ria Riley mas G. Rock tea,<e Schneider Jonathan Seltzer Wade Smith Shelley lone Sumpter Joe Selvaggio, President Charles Williams ADVISORS Ed Anderson Lee Bazany Ph~Cohen Ned Dayton Robert L. Davidson Joseph Errigo Gertrude Esteros Pat Ryan Greene Jeffrey FGrosscup Dick Heath Peter Heegaard Jack Hodnett Bill Humphrey, Jr. David W. Johnston Duane E. Joseph Joseph D. Kenyon Peter Kramer Harlan Limpert Lee Lynch Mike McCarthy Dennis B. McGrath AI Porte Ted Pouliot Peter Rand Melissa Raphan Conrad Razidlo Mark B. Rotenberg Samuel D Riley ~I St. Anthony ,ua Schneck ,,.,,~athan NScoll Bruce Thomson Terry Thompson Laurence M. Ulrich Anne Q. Ulseth Mike Winton Penny Winton Project for Pride in Living, Inc. July 5, 1994 Bruce Palmborg, Richfield HRA Coordinator 6700 Portland Richfield, MN 55423 Dear Mr. Palmborg: Re: 1994-95 Community Apartment Program Proposal Project for Pride in Living (PPLj, in partnership with Affordable Suburban Housing (ASH), is pleased to report that during the first year we were able to accomplish several important goals. The Richfield Apartment Owners/Managers group was formed with over 3500 Richfield apartments units represented at the bi-monthly General Membership Meeting. Attendance at the General Membership meetings has averaged 47 owners/managers per meeting. To our knowledge, this has been the highest attendance of the metro area owners and managers associations. The building of partnerships between agencies, organizations, city services and the apartment complexes has been accomplished. City Departments and other agencies are doing on-site delivery of informational packets where one-on-one contact is being made with the apartment renters. The second year proposal contains five important outcomes. These outcomes are a continuation of the successful accomplishments made in the first year. Three of the important outcomes are: 1) Continue to provide staff consulting services to the RAMA Organization - 2) Continue to initiate collaborative efforts between agencies, organizations and RAMA 3) Implementation of Apartment Finance Information program (See Attached) Enclosed is the proposed outcomes for the Richfield Community Apartment Program 1994-1995 year. Yours truly; L_--_- ` _--~ j , % `/ _" ~--- " Laura Klein - Community Initiatives Manager Project for Pride in Living 874-8511 C~~'~~" Bill Schatzlein Executive Director Affordable Suburban Housing Inc. 824-1628 CONIMUNITY APARTMENT PROGRAM 1994 - 1995 EXHIBIT A (Page 2 of 7) Proposed Outcomes for 2nd Year July 5, 1994 outcome One• Continue to provide staff consulting service to RAMA Organization. Activities: 1. Implementation of marketing Plan and outreach program to increase participation in RAMA, including owners and managers of smaller apartment buildings 2. Assistance in fundraising for RAMA operating costs 3. Recruitment of interns and volunteers for RAMA 4. Assist RAMA in becoming aself-sufficient organization ' Outcome Two• Continue to initiate collaborative efforts between agencies, organizations and rental properties. Activities: 1. Continued Public Safety collaboration and involvement with RAMA members and all Richfield rental dwellings. 2. Development of a Churches Adopt-an-Apartment Program with local churches 3 . Chamber of Commerce and RAMA working together to .promote the benefits of living and doing business in Richfield 4. Joint purchasing of products and services of property owners, ie., resident selection, advertising, maintainance. -Outcome Three• Analyze and distribute results of Richfield Rental Survey to RAMA members, City Staff and other interested agencies. ' Activities: 1. After consultation with RAMA members, City staff other other interested agencies, development of an action plan that responds to survey results Outcome Four• Implementation of Apartment Finance Information Program (See Attached). Activities: 1. Gather information regarding available mortgage finance, refmancing and property rehabilitation programs 2. Meet with individual apartment owners to provide information about mortgage fmance, refinancing and property rehabilitation programs. 3. Explore apartment building conversion, ie., townhouses or larger family units. Outcome Five• Develop model for rental residents councils at sites approved by owners. 'activities: 1. Increase renter awareness of city and community resources, ie., crime watch, Parks and Recreation, Richfield Public Schools 2. Solicit resident input for planning future summer programming • EXHIBIT A (Page 3 of 7) RICHFIELD APARTMENT OWNERS AND MANAGERS ASSOCIATION RAMA Marketing Plan Background In 1993 the Richfield Apartment Owners and Managers Association was founded. The mission of this organization is " To enhance the image, quality of life and pride in Richfield by isolating and taking positive action on real and perceived problems through communication and cooperation between multi-family housing management ownership, the City and business community." The mission will be accomplished by " Multi-housing management /ownership, the City and business community factually working together to make Richfield's multi-housing properties a safe, secure and profitable endeavor and quality environment in which to live.' All Richfield apartment owners and managers are members of the Assoaation. Purpose of this plan The purpose of the marketing plan is to develop methods to increase participation of the members in the Assoaation in order to accomplish the mission of the Association. The plan will develop methods to increase member partiapation at meetings of RAMA members, RAMA sub -committees, meetings with the business community, with City leaders, community organization; and agenaes serving the community. Goal of the Plan The goal of this marketing plan is to increase particpation of the members in the Association., Through the implementation of this plan we expect to increase member participartion in the Assoaation, by the end of our fist year (October 1994), to the point where 7596 of the owners and managers have been invdved in some RAMA activity. Methods to be used io carry out the plan 1. A current list of all Richfield apartment owners, managers, and on-site staff will be prepared for purposes of mailing information to members, and calling members. The list can be sorted by owners, managers, on-site staff, number of units in management, geographic area (wards ), etc. 2. Notices of meetings of the Association will be sent to all of the members. EXHIBIT A (Page 4 of 7) Page 2. 3. A bi-monthly newsletter will sent to all of the members following each meeting of the Association in order to summarize the information provided at the membership meeting, to announce future meetings, and to communicate other information of interest to the members. The newsletter will also be sent to city officiials and staff, the business community, agenaes in the community, and other community organizations. 4. A telephone contact committee will be established in order for members to contact other members to encourage them to participate in membership meetings, committee meetings, and speaal events. 5. A brochure will be prepared that will describe the mission of the Richfield Apartment Owners and Managers Association, how the Association operates, and some of the major issues being ad~essed by the Association. 6. Public information about the Association will be communicated through various forms of media includng newspapers, radio, television, and mailings. Prepared by: &II Schatzlein, Affordable Suburban Housing, inc., January 28, 1994. EXHIBIT A (Page 5 of 7) PlCH= cF~~ =-=.RT~,fF"~:` ~w~~i~RS A-~~ Pti1ANA~FRS ^,SS~CIATDR Apartment -=;~ ia'1C° information Progam June t 994 Back~ound in September of 199 Project i=or Pride in Living and Affordable Suburban Housing, inc. were hire4 by the Richfield Housing and Redevelopment Authority to establish the Richfield Apa~ment Owners and Managers Association. the organization has been established w-tt~ an executive committee, three sub-committees. and regular bi- monthly memi?ership meetings. Ai{ of Richfield apartment owners and managers are members of RAMA. As part of our an-going consulting services to RAMA, P.P.L. and A.S.H. propose to develop the Apartment Finance Information Progam as a service to Richfield Apartment Owners. Purpose of the Program The purpose of the Apartment Finance information Program is to, (A) gather infiormation regarding apartment financing including the following: 1. First Mortgage Financing 2. Mortgage Re-Financing 3. Property Rehabilitation r inancing (t3) to make *hat information available to Richfield apartment owners in a format that is understandable and useable. Methods to be used in the Program (A) Program ?reparation P. P. ~. and ~,. S. H. will work with various Public and Private Banks. Mortgage Bankers, and Lenders to gather information about the various mortgage progams available. Public lenders will include The Minnesota Housing Finance Agency, and the Department o~ Housing and Urban Development. Private lenders will include The Community Reinvestment Fund (see attached article). information about each mortgage progam will include the terms of the mortgage number of years, interest rate, loan to value ratio, up front fees, collateral, etc.) A Term Sheet will be prepared for each mortgage program (see attached example of a Term Sheet ). EXHIBIT A (Page 6 of 7) (B) Program Implementation Program Publicity -The Apartment Finance fnformation Program will be publicized in the RAMA newsletter, in the Richfield Sun. at RAMA Membership and Committee meetings, and throw mailings. P.P.L. -and A.S.H. will meet with Richfiield owners who are interested in receiving apartment finance information. The consultants wil! obtain information from each owner regarding they financing needs. Based on the needs of each owner, the consutants will recommend several mortgage program options that may meet the needs of each owner, The consultants will review each of the mortgage program options with each owner to explain the information and help the owns;- make the necessary contacts. The consultants will follow - up with each owner to determine if the information was helpful, if other options should b~ explored. and if additional assistance from the consultants would be helpful. (C) Program Evaluation P, P. L, and Q.S.H. will provide the Richfield HRA with a written program evaluation on a quarterly basis. The evaluation will indicate the number of Richfield owners involved in the program, the number of mortgage program recommendations made by the consultants, the number of mortgage lenders involved in the prog;-am, and the number of mortgages obtained by Richf~efd owners, The evaluation may include recommendation from the consultants regarding future changes in the program that would improve the program. EXHIBIT A (Page 7 of 7) PROJECT FOR PRIDE IN LIVING, INC. AFFORDABLE SUBURBAN HOUSING PROPOSAL TO THE CITY OF RICHFIELD BUDGET September 1994 -August 1995 Revenue City of Richfield Expenses Program Coordinator Salary Benefits/Taxes/Workers Comp Other Staff SalaryBenefits/Taxes/Workers Comp Transportation (Staff Mileage) Supplies/Office Support/Postage Administration Total Expenses Second 12 Months $44,000 $20,000 $16,000 $ 1,000 $ 3,000 $ 4,000 $44,000 [Redev]PPL-Pro EXHIBIT B AFFIRMATIVE ACTION REQUIREMENTS On January 1, 1988, the Richfield City Council approved an affirmative action program which requires the city "to provide equality of opportunity in employment to all persons and to prohibit discrimination because of race, color, religion, national origin, place of residence, political affilia-tion, disability, marital status, status with regard to public assistance, sex, or age in all aspects of the City's personnel policies, programs, and practices." The program further requires that the City ,support the various relationships with contractors, subcontractors and vendors. Therefore, requirements have been adopted for contracts as follows. a. The contractor shall submit a signed statement (Exhibit C) signifying that they are in compliance with the standards of equal employment and anti-discrimination as cited in the Civil Rights Act of 1964 as amended in 1972 by the Equal Employment Opportunity Act. b. In accordance with the City of Richfield's Affirmative Action policy, no person shall, on the grounds of race, creed, color, sex, age, disability, or national origin be excluded from full employment rights in, participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program, service, or activity for which the parties received, or will receive financial assistance under the provision of any and all applicable federal and state laws against discrimination. The contractor will furnish all information and reports if required by the City of Richfield or by Executive Order No. 11246 and Revised Order No. 4, and by the rules and regulations and orders of the Secretary of Labor or the State of. Minnesota for purposes of investigation to ascertain compliance with such rules, regulations, and orders. c. 1971 Minnesota Statutes 181.59 is made a part of this contract. See Exhibit D. EXHIBIT C Statement of Compliance The undersigned, in his/her capacity as agent for Project For Pride In Living, Inc., hereby states that his/her principal is in compliance with the standards of equal employment and anti- discrimination as cited in the Civil Rights Act of 1964 as amended in 1972 by the Equal Employment Opportunity Act. Dated: BY~ Its HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 51 Agenda July 18, 1994 Issue Statement: Richfield Rediscovered Remodeling Program status report and contract with Janet Posus-Ryan for Remodeling Advisor Services. Background: The HRA authorized the Richfield Rediscovered Remodeling Program in September 1993. In October, Remodeling Advisor Dave Schaffer was selected as a consultant to meet with and encourage homeowners to remodel. Also in October, Norwest Mortgage/Norwest Bank Richfield formulated the use of a Fannie Mae Mortgage product which allowed refinance and remodel projects based on the future value of the improved property. Mike Schrader of Norwest Mortgage has been the contact person for residents. Both Dave and Mike will be in attendance at the HRA meeting. Several events and many resident contacts have occurred since program approval. A summary report is attached. The report also includes HRA transformation loan activity to date. Residents have responded to the advisor's work enthusiastically. The advisor's visits, the development of homeowner "action plans" and the HRA's remodeling manual have been cited as very valuable. A copy of the packet each homeowner receives will be given to Commissioners at the meeting. To better respond to marketing demand and in anticipation of new remodeling initiatives, it is appropriate to consider additional advisor services. Staff has identified Janet Posus-Ryan to provide additional advisor services, as needed. Ms. Posus-Ryan has been employed since 1988 by the Minneapolis Community Development Agency as a housing inspector and rehabilitation specialist. She also has housing design and real estate experience and education. Conversations with three Minneapolis remodeling client references provided by Ms. Posus-Ryan indicate that quality working relationships can be anticipated from her. She has successfully worked with fussy clients and made the remodeling process very user friendly. Ms. Posus-Ryan is planning to attend the HRA meeting. The contract for her services is very similar in content and scope to the one used for Mr. Schaffer's services. The maximum level of service would be approximately 10 to 15 hours a week at $30 per hour. The proposed contract is attached. Funds for this contract are available from the initial authorization made by the HRA in September 1993. Recommended Motion: Receive a status report on the HRA's remodeling program initiatives and approve a contract with Janet Posus-Ryan, authorizing the Chair and Executive Director to execute it. Basis of Recommendation: 1. The HRA's remodeling initiatives are being enthusiastically received and the program .has operated long enough to receive quantifiable feedback. 2. A reporting form has been developed to provide this initial and future information to the HRA. 3. Additional outreach and marketing efforts are planned and the addition of another Remodeling Advisor provides maximum flexibility to respond to the demand. Janet Posus-Ryan has been identified as a qualified contractor. 4. Additional Remodeling Advisor services have been anticipated in the revised 1994 and proposed 1995 budgets. Alternative Recommendation: 1. Delay receiving the report and considering a contract. 2. Request the form and content of the report be modified. 3. Direct staff to modify a part of the proposed contract. Discussion/Decision Mode: Contract services with Janet Posus-Ryan would begin August 1, 1994. Respectfully submitted, Jame Prosser Exec ve Director JDP:ds RICHFIELD REDISCOVERED REMODELING PROGRAM QUARTERLY REPORT June 30, 1994 I. CONTACTS WITH REMODELING ADVISOR Current uarter Program to Date Total Contacts from Remodeling Connection 209 or special events Contacts from Richfield residents 200 Non-residents (purchase/remodel) 9 Total 209 Result of Contact: Information Only 122 Home Visit 87 Total 209 'II. REMODELING PROGRESS (follow-up survey from home visits) Cost of Improvements Less than $5,000 $5,000 to $10,000 $10,000 to $20,000 $20,000 to $30,000 $30,000 to $40,000 $40,000 to $50,000 Over $50,000 Projects in progress 3 3 1 2 2 Projects with approved laps (waitin on lender) 2 1 2 2 Reason for Not Too Still Interested Credit/Financial Too Expensive: Have Remodeling at Expensive: At A Later Difficulty Will not MovedlPlan this Time Scale Down Date Remodel on Movin Number of 16 13 6 3 9 Proiects Undecided I Other/ Misc. 3 I 3 *Desirable features of Richfield aside, the cost and payback for the homeowner to increase the square footage and add amenities appears to be too expensive to the homeowner. Thus, relocation remains an option. Approximately 350 to 450 home sales occur each year in Richfield. --nichfield Rediscovered Remodeling Program luarterly Report June 30, 1994 Page 2 III. MARKETING/SPECIAL EVENTS Remodeling Program Brochure , (Bulk Mail to Richfield Households) 6500 James Open House Richfield Remodeling Fair Community Education Class, led by Remodeling Advisor "Your City" Newsletter Water Bill Insert October 1993 October 1993 January 1994 March 1994 March 1994 April 1994 July-September 1994 IV. NORWEST MORTGAGE SUMMARY OF FINANCE/REMODEL ACTIVITY Since November, 1993, Norwest Mortgage has closed on eight refinance requests which resulted in remodeling actions and generated a mortgage volume of $768,716. One mortgage closing for $114,555 is pending. Refinance/remodel or purchase/remodel mortgage volume combines the primary mortgage and remodel financing together as one mortgage. V. HRA Funded Transformation Loan Report Case Number Address Status or Closin Date Remodel Contract Amt HRA Transformation Loan Funds Received 1 6845 Thomas Ave 4-21-94 $ 66,400 $ 9,970 2 7009 Newton Ave 5-20-94 $ 79,020 $11,853 3 7526 14th Ave Pendin $ 52,794 $ 7,916 4 7213 1st Ave Pendin $ 55,000 $ 8,500 Total: $253,254 $38,239 [Housing]Report2 PROFESSIONAL SERVICE AGREEMENT REHABILITATION ADVISOR THIS AGREEMENT made and entered into by and between the Housing and Redevelopment Authority In and For The City of Richfield, STATE OF MINNESOTA, hereinafter referred to as the HRA, and Janet Posus- Ryan, St. Paul, MN an individual hereinafter referred to as Posus- Ryan. WITNESSETHo WHEREAS, the HRA wishes to purchase the services of Posus-Ryan; 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 Posus-.Ryan agree as followse 1. TERMS AND COST OF THE AGREEMENT Posus-Ryan agrees to furnish services to the HRA as indicated on the attached Exhibit A dated August 1, 1994. The hourly _, cost of this agreement shall not exceed $30 per hour.' All reports, memos, and other data produced by Posus-Ryan become the property of the HRA. 2. PAYMENT FOR SERVICES Invoices may be submitted monthly. Payment for services shall be made directly to Posus-Ryan by check. Invoices shall be of sufficient detail for the HRA to determine the activity and location of work for which payment is being made. Payment shall be made within 30 days of receipt of an invoice by the HRA. 3. INDEPENDENT_CONTRACTOR Posus-Ryan 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 Posus-Ryan and the HRA or as constituting Posus-Ryan as the agent, representative, or employee of the HRA for any purpose or in any manner whatsoever. Posus-Ryan is to be and shall remain an independent contractor with respect to all services performed under this Agreement. Posus-Ryan represents that she. has or will secure at her own expense all personnel required in performing services under this Agreement. Any and all personnel of Posus-Ryan 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 1 not be considered employees of the HRA. Any and all claims that may or 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 alleged employment, including,. without limitation, claims of discrimination against Posus-Ryan, its officers, agents, contractors, or employees shall in no way be the responsibility of the HRA. Posus-Ryan 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 performed 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. Posus-Ryan shall (1) furnish all information and reports which may be required by the City's Affirmative Action Policy, and (2) shall comply with the City's Equal Employment Opportunity/Affirmative Action Policies with regard to employment and contracting (See Exhibit B). 5. INDEMNITY AND INSURANCE Posus-Ryan agrees to defend, indemnify, and hold the HRA, its officers,- and employees harmless from any liability claims, damages, costs, judgements, or expenses, including reasonable attorney fees, resulting directly or indirectly from an act or omission (including without limitation professional errors or omissions) of Posus-Ryan, its agents, employees, or assignees in performance of the services provided by this contract, and against all loss by reason of the failure of Posus-Ryan to fully perform in any respect, all obligations under this contract. 6. DATA PRIVACY Posus-Ryan agrees to abide by all 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. 2 7. 8. 9. RECORDS - AVAILABILITY Posus-Ryan 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 Posus-Ryan and involve transactions relating to this Agreement. Records shall be retained for three years from date of final payment with respect to the project. NON-ASSIGNMENT Posus-Ryan 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. 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. 10. DEFAULT AND CANCELLATION a. If Posus-Ryan 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 cancelled with or without cause by either party upon twenty (20) days written notice. 3 11. CONTRACT ADMINISTRATION In order to coordinate the services of Posus-Ryan 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,,Bruce Nordquist and Pam Rohne shall serve as liaison between the HRA and Posus-Ryan. In addition, from time to time, meetings shall be held between Posus-Ryan and HRA staff. Posus-Ryan may also report directly to-the HRA Board of Commissioners from time to time. 12. NOTICES Any notice or demand which must be given or made by a party hereto under the terms of this Agreement shall be in writing. Notices shall be sent as follows: To the HRA; To Posus-Ryan; Bruce Palmborg Housing & Redevelopment Coordinator City Hall 6700 Portland Avenue Richfield, MN 55423 Janet L. Posus-Ryan 4558 Bramblewood Avenue St. Paul, MN 55127 Posus-Ryan having signed this contract, and the HRA having duly approved this contract on July 18, 1994, 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 By: Executive Director Attest By: Chairperson Attest By: Its Attest By: Its Attest 4 EXHIBIT A August 1, 1994 Posus-Ryan shall perform the following services as they apply to the Richfield Rediscovered Remodeling Program. 1. Work with staff in start-up, marketing, and on-going monitoring of program elements. 2. Be available to attend Open House functions, Remodeling Fair, and other promotional events. 3. Meet with various business and community groups as requested to promote and implement .program. 4. Generate community, interest through random calls, neighborhood canvassing, and door-to-door marketing. 5. Assist with informational services to keep homeowners fully informed. 6. Meet initially with homeowners at their home to assist with the following: a. Property evaluation survey documented on written survey form. b. Identify and discuss needs, wants, and design considerations. c. Prepare an Action Plan outlining initial scope of work with general cost estimates. d. Explain program procedures and lending information including loan requirements. 7. Follow-up contact after initial homeowner visit to monitor progress. 8. Be available to assist homeowner through the various program stages leading to a signed construction agreement. This may include additional design and technical assistance, contractor selection, and the securing of a loan. 9. Submit monthly reports, written and oral, to HRA documenting measurable objectives which include: a. Number of homeowner calls made and received. b. Number of homeowner site visits. c. Number of follow-up calls made and results. d. Number of referrals to lenders and results. e. Record of marketing results. f. Action plan cost estimate. 5 EXHIBIT B AFFIRMATIVE ACTION REQUIREMENTS On January 1, 1988, the Richfield City Council approved an affirmative action program which requires the City to provide equality of opportunity in employment to all persons and to prohibit discrimination because of race, color, religion, national origin, place of residents, political affiliation, disability, marital status, status with regard to public assistance, sex, or age in all aspects of the City's personnel policies, programs, and practices." The program further requires that the City support the various relationships with contractors, subcontractors and vendors. Therefore, requirements have been adopted for contracts as follows. a. The contractor shall submit a signed statement (Exhibit C) signifying that they are in compliance with the standards of equal employment and anti-discrimination as cited in the Civil Rights Act of 1964 as amended in 1972 by the Equal Employment Opportunity Act. b. In accordance with the City of Richfield's Affirmative Action policy, no person shall, on the grounds of race, creed, color, sex, age, disability, or national origin be excluded from full '- employment rights in, participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program, service, or activity for which the parties received, or will receive financial assistance under the provision of any and all applicable federal and state laws against discrimination. The contractor will furnish all information and reports if required by the City of Richfield or by Executive Order No. 11246 and Revised Order No. 4, and by the rules and regulations and orders of the Secretary of Labor or the State of Minnesota for purposes of investigation to ascertain compliance with such rules, regulations, and orders. c. 1971 Minnesota Statutes 181.59 is made a part of this contract. See Exhibit D. 6 EXHIBIT C Statement of Compliance The undersigned, in his/her capacity as agent for hereby states that his/her principal is in compliance with the standards of equal employment and anti- discrimination as cited in the Civil Rights Act of 1964 as amended in 1972 by the Equal Employment Opportunity Act. Dated: By: Its 7 EXHIBIT D 181.59 DISCRIMINATION. ON ACCOUNT OF RACE, CREED, OR COLOR PROHIBITED IN CO)\TRACT. Every contract for or on behalf of the state of Minnesota, or any county, city, town, township, school, school district, or any other district in the state, for materials, sub plies, or construction shall contain provisions by which the contractor agrecs: (1) That, in the hiring of common or skilled labor for the pcrforma;ter, orvcndor, undo any contract, or any subtcAiract, no contractor, mattrial Supp ~ ns who shall, by rrzson of nce, creed. ur color. disc7itninate against the person ar pcrso art citizens of the Unitcd Stairs or resident aiirns who sre quali5ed and available to perform the work to which the employment elates; (2) That nn tontractor, material supplitr, or vendor, shall, in any manner, discrim- inate against, or intimidatt, or prevent the employment of any person or persons identi- fied in clausr (I) of this moon, or on being aired, prevent, or conspire to prevent, the person or persons from the performancc of work under any contract on account of racc, creed. or color; (3) That a violation of this section is a misdemcanor; and crt~ (4) That this contract may be canceled or terminated by the state, county, town, school board, or any other person authorized to grant the contracts for employ- ment, and all money due, or to become due under the contract, may be forfeited for a second or any subsequent violation of the terms or conditions of this contract. Histon•: 1 D41 t 238; 1973 t 123 art S s 7; 198 t 6D9 s ll _,a HOUSING AND REDEVELOPMENT AUTHORITY ~ HRA Letter No. 50 Agenda July 18, 1994 Issue Statement: Purchase agreement with CSM to provide a relocation site for the Emerson Avenue Congregational Church. Background: On April 11, 1994, the HRA approved a contract for private development with the CSM Corporation. That contract provided that the HRA would sell to CSM a portion of the Cloverleaf site. CSM would utilize the site to build a new church-and parking lot. The agreed upon sale price was the per square foot cost the HRA paid when the Cloverleaf site was purchased from the RTC, 51.88 per square foot. On April 18, 1994, the HRA held a public hearing regarding the sale of a portion of the Cloverleaf site to CSM. Following the hearing, the HRA approved the sale. Attached is the proposed purchase agreement between the HRA and CSM and a schematic site plan. Some of the significant points included in the agreement follow: 1. Purchase price paid by CSM is 5122,200 assuming 65,000 ~ s.fe of site area. This figure may be adjusted pending the results of a survey .and a determination of the exact area of the site. 2, CSM will obtain a boundary survey at its expense. 3. CSM is to enter into purchase agreements with Emerson Church a. providing for the "sale" of this parcel to the church. b. providing for the purchase by CSM of the existing church site. 4. Closing between the HRA and CSM is set for August 1, 1994. 5. CSM may enter the site to undertake various investigations and shall pay all costs related to the investigations and hold HRA harmless should anything negative be discovered. 6. CSM will pay all costs associated with the closing. Recommended Motion: Approve the purchase agreement between CSM and the HRA for the .sale of a portion of the Cloverleaf site to be utilized as the site for a new Emerson Avenue Congregational Church. Basis of Recommendation: 1. The agreement conforms to the conditions of the contract for private development with CSM. 2. The agreement is consistent with the results of the public hearing. 3. CSM in addition to paying for the land is paying costs associated with the closing. 4. CSM has reviewed this agreement. Alternative Recommendation: 1. Delay action. 2. Modify the agreement. 3. Reject the agreement. Discussion/Decision Mode: This agreement is needed to permit the Phase I CSM project to proceed. Construction of a new church cannot begin without it. Respectf y submitted, Jame Prosser Execu ive Director JDP:ds PURCHASE AGREEMENT This Purchase Agreement is made 1994, by and between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA, a Minnesota public body corporate and politic ("HRA)" and CSM CORPORATION, a Minnesota corporation ("CSM"). Recitals A. HRA is the owner of that certain real estate located near the intersection of Girard Avenue South and 77th Street West in the City of Richfield, Hennepin County, Minnesota, as shown in the attached Exhibit A (the "Property"). B. The Property is vacant and undeveloped land and is a portion of a larger parcel owned by HRA and legally described in the attached Exhibit B (the "Cloverleaf Property"). C. CSM and HRA have entered into a Contract for Private Development dated , 1994 (the "Contract"), under which HRA agreed to enter into a written agreement to sell the Property to CSM. Agreement In performance of their obligations under the Contract with respect to purchase and sale of the Property, and in consideration of the mutual promises made in this purchase agreement, the parties agree as follows: 1. Offer/Acceptance. CSM agrees to purchase and HRA agrees to sell the Property under the terms and conditions stated in this Agreement. The Property is vacant, undeveloped land, and there is no personal property included in the sale. 2. Purchase Price. The purchase price for the Property shall be One Hundred Twenty-two Thousand Two Hundred and no/100ths Dollars ($122,200.00) and shall be payable as follows: $ 1.00 Earnest money, the receipt of which is hereby acknowledged by HRA. $ 122,199.00 Cash delivered at closing The parties hereto agree that notwithstanding the foregoing, the actual purchase price hereunder shall be equal to the product of the number of square feet in the Property times $ 1.88. For purposes of the foregoing,. the parties have assumed total area of Sixty-five Thousand (65,000) square feet in arriving at the preliminary purchase price of $122,200.00 (65,000 s.f. x $1.88 p.s.f.). At Closing the purchase price shall be adjusted to reflect the actual square footage of the Property as shown on the CAH72683 RC125-68 Survey and the cash due at closing shall be adjusted accordingly. 3. Survey. Within thirty (30) days after the date of this Agreement, CSM shall obtain, at its expense, a boundary survey of the Property, prepared and certified to HRA and CSM by a Registered Land Surveyor licensed to practice in the State of Minnesota. The Surveyor shall include on the boundary survey the area and an accurate legal description of the Property.. 4. Conditions to Closing. The closing of the transaction contemplated by this Agreement and the obligation of CSM to purchase-the Property shall be subject to the following conditions: a. CSM shall have reviewed and .approved title to the property pursuant to paragraph 5 of .this Agreement. b. The HRA shall have obtained the required subdivision approval or waiver to permit the recording of the deed to be delivered at closing. c. CSM shall have determined on or befoze the Closing Date that it is satisfied, based upon the .results of and matters disclosed by any environmental or soil investigations or testing of the Property, that there are no environmental or soil conditions that would materially interfere with CSM's proposed use of the Property as the relocation site for a church and parking improvements. d. CSM shall have obtained an executed purchase agreement from the Emerson Avenue Congregational Church ("Church") providing for the sale of the Property by CSM to the Church and the sale by the Church to CSM of the real estate located at Emerson Avenue South, Richfield, Minnesota, and legally described on the attached Exhibit _ ("Old Church Property"). The obligation of the HRA to sell the Property shall be subject to the following conditions: e. CSM shall, on the date of closing, convey the Property to the Church, pursuant to the purchase agreement between CSM and the Church, except as provided in paragraph 10 of this agreement. f. CSM shall obtain, on or before the date of closing, a properly executed deed from the Church, conveying marketable title to the Old Church Property. g. As of the date of closing, CSM shall not be in default of the Contract. If CSM is in default, and if such default has continued or does continue for a period of 30 days or more, then the HRA may at its option cancel this agreement, in which case all earnest money shall be returned to CSM. CAH72d83 ,Z RC125-68 The party in whose favor a contingency runs may waive the -- contingency in whole or in part at or prior to Closing. In the event that a party is unable to satisfy any of the foregoing conditions, the party may, by written notice to the other party prior to Closing, terminate this Purchase Agreement, whereupon HRA shall refund to CSM the earnest money paid by CSM and neither party shall have any further liability hereunder, provided that CSM shall deliver an executed quit claim deed to the Property to HRA. .CSM agrees to diligently proceed to satisfy the conditions of this paragraph. 5. Title Matters. The HRA represents that the abstract of title for the Property is not within HRA's possession or control. In lieu of the abstract, HRA will obtain, at CSM's sole cost and expense, an owner's title policy in the full amount of the .,purchase price. HRA shall, within a reasonable time after the acceptance of this Agreement, provide CSM with a current title insurance commitment for said policy, together with all unrecorded instruments, if any, relating to interests in the Property. After receipt of the title commitment, the CSM shall have ten (10) days for the examination thereof, and to deliver written objections, if any, to the HRA. HRA shall have 20 days after receipt of CSM's written objections to make title marketable. Pending correction of title, obligations of the parties hereunder shall be postponed, but upon correction of title and within ten (10) days after written notice thereof, the parties shall perform this Agreement according to its terms. a. If the HRA proceeds in good faith to make title marketable but fails to do so within the 60 day period, HRA and CSM agree to proceed to closing on the condition that HRA provide CSM with a written undertaking to use all means available to it to remove any encumbrances or clouds. upon title. b. If title is marketable or is corrected within the 60 day period and CSM defaults in any of the agreements herein, HRA may pursue all remedies available to it under law, including without limitation, specific performance of this purchase agreement, pursuit of remedies provided under the Contract, or other remedies at law or in equity. 6. Preliminary Development. CSM and its agents shall have prior to the Closing Date, to enter upon the Property for the purpose of taking soil tests, borings, making surveys and maps and performing other preliminary investigative work, provided, however, that CSM shall indemnify and hold harmless the HRA from any mechanic's liens or claims arising out of such preliminary development work by CSM. Prior to the Closing Date, CSM shall not construct or cause the construction of any improvements on the Property. CSM shall pay all costs and expenses of such investigation and testing and shall hold HRA harmless from all damages and liabilities arising out of CSM's activities. CAH72483 RC125-6B 3 7. Subdivision Approval. Subdivision approval or waiver is required by the City of Richfield before the Property can be conveyed to CSM. HRA shall obtain from the City, at CSM' s expense, the necessary subdivision approval or waiver required to permit recording of the deed to be delivered pursuant to paragraph 10 of this agreement. CSM agrees to cooperate with the HRA and to timely supply to the HRA all surveys, documents, and other information which are usual and necessary to obtain the required approval or waiver. 8. Real Estate Taxes and Assessments. On or before the Closing Date, HRA will pay all real estate taxes and installments of special assessments due and .payable prior to the year of closing. Real estate taxes and special assessment installments payable in the year of closing will be prorated between CSM and HRA as of the Closing Date. CSM shall. have the obligation of paying all real estate taxes and special assessments payable in 1995 and thereafter. 9. Closing Date. The closing of this transaction shall take place on August 1, 1994 at the offices of Holmes & Graven, Chartered, 470 Pillsbury Center, Minneapolis, Minnesota 55402, or at such other time and place as the parties may agree. 10. Documents to be Delivered at Closing. On the Closing Date, CSM shall deliver to HRA the following: a. A certified check in the amount of $122,199.00, payable to the HRA. and HRA shall deliver to CSM: c. A duly executed quit claim deed, conveying marketable title to the Property to CSM, subject only to: (i) Building and zoning laws, ordinances, state and federal regulations; (ii) restrictions relating to the use or improvement of the Property which do not interfere with the improvements to be constructed thereon by CSM or with the use of the Property as a church; (iii) utility and drainage easements which do not interfere with the improvements to be constructed thereon by CSM; and (iv) reservation of any minerals or mineral rights to the State of Minnesota. In the alternative, at CSM' s request and with the consent of the Church, the HRA will deliver the above-described quit claim deed to the Church. d. A duly executed affidavit of seller. e. All documents necessary to establish marketable title in the grantee of the deed referenced in subparagraph c above. c~a~2sa3 4 RC125-6B 11. Closing Costs. CSM shall pay all costs associated with "- the closing of this transaction, including recording costs, deed tax, and any closing fees charged by the title insurance company. 12. Covenants, Representations and Warranties of HRA. a. The signatories to this Agreement represent that they are agents of the HRA and are authorized to execute this Agreement on the HRA's behalf. b. HRA warrants that it will take no actions to encumber title to the Property after the date of this Agreement and. that it will indemnify and hold CSM harmless against any liens or encumbrances established in violation of this provision. c. HRA warrants that no labor or material has been furnished to the Property for which payment has not been made.. d. HRA warrants that it has no knowledge of any present violations of any restrictions relating to the use or improvement of the Property. e. There are no wells located on the Property. f. The warranties made in this paragraph shall survive - closing without merger in the deed; provided that any action for breach of warranty must be commenced within one year after the date of closing. 13. Covenants, Representations, and Warranties of CSM. a. The signatories to this Agreement represent that they are agents of CSM and are authorized to execute this Agreement on CSM's behalf. b. CSM warrants that, as of the date of closing, it will have entered into an agreement with the Church for the sale of the Property to the Church as required by the Contract. CSM further warrants that it will convey the Property to the Church on the date of closing. c. The warranties made in this paragraph shall survive closing without merger in the deed; provided that any action for breach of warranty must be commenced within one year after the date of closing. 14. No Broker Involved. The HRA and CSM represent and warrant to each other that there is no broker involved in this transaction with whom it has negotiated or to whom it has agreed to pay a broker commission or finder's fee in connection with negotiations for the sale of the Property arising out of any alleged agreement, commitment or negotiation by HRA. cns~zae3 5 RC125-68 15. Possession. HRA shall deliver possession of the Property to CSM on the Closing Date. 16. Remedy for Default. If CSM defaults in any of its obligations under this agreement or the Contract, HRA may terminate this Purchase Agreement. A termination of the Contract shall automatically result in the termination of this Purchase Agreement. If this Purchase Agreement is not terminated, CSM or HRA may seek actual damages for breach of this Agreement or specific performance of this Agreement; and, as to specific performance, such action must be commenced within six months after such right of action arises.. 17. No Waiver. The waiver by either party of any right or remedy under this Purchase Agreement shall not be deemed a waiver of any right or remedy under the Contract, unless expressly so stated by the party in writing. 18. Time of Essence. Time is of the essence in this Purchase Agreement. 19. Entire Agreement; Amendments. Except as provided herein, this Agreement represents the complete and final agreement of the parties and supersedes any prior or contemporaneous oral or written understanding between the parties. This Agreement may be amended only by a writing signed by both parties. 20. Binding Effect; Assignment. This Purchase Agreement shall be binding upon the parties hereto and their respective heirs, executors, administrators, successors and assigns. Each party agrees to give the other party notice prior to assigning its interest in .the Property or this Agreement. 21. Notice. Any notice, demand, request or other communication which may or shall be given or served to or on HRA by CSM or to or on CSM by HRA shall be deemed to have been given or served on the date the same is deposited in the United States mail, registered or certified, postage prepaid and addressed as follows: (1) If to HRA: Jim Prosser, Executive Director Richfield HRA 6700 Portland Avenue South Richfield, MN 55423 with copy to: Corrine A. Heine Holmes & Graven, Chartered 470 Pillsbury Center Minneapolis, MN 55402 (2) If to CSM: CSM Corporation Attn: Dave Garland 2561 Territorial Road St. Paul, MN 55114-1500 CAH72483 6 RC125-68 with copy to: William Franke CSM Corgoration -2561 Territorial Road St. Paul, MN 55114-1500 IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed on the date written above.' HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA By Its Chairperson. By Its Executive Director CSM CORPORATION By Its By Its CAH72683 RC125-68 7 J UL-1~-1'~J4 'lam ~ 4..3 rKUI'I I UJI"i 1 C-~'iuiv i uui ~~r~ i cx n~.~u~. ~ v v~in,~~U AV ~ d S~UU I H I 1 V R .~ ~, ~~ /` I / ~. 4~•. ~.. `c~~~.. I -~~--.._.__.._..C..~._,.r..._.~ .._..--- ~ N ~ i t ;~ ~ m ~ j 1 ~ i ~ ~ t/ M \ I• ~ ~ ~\ 1 t~'~ ~ i m ~ titi ~'`.. M ~ ` ~t ~'~~~ N M ~'~ ~ i R° , ~ ~ .,, .. w ~, ~ N ~ ~ .. ~ ~~. ~` • Q ~ 4 '~ ~ .. ' N `~ f ` N .~ • ~-~- . ~ ~ ' ~ /1 ~ r N W, W ~ ~ .A ' f ~ ~ ~ 'p \ N ~ .• ~. . ~ t ~ `~7 N ~ ,~ ~ ~ cr M+ j ~ w, Pl ~ N ` ~+ p' ~ v 1 ~ ~ V / ~ ! N • V 4 V ~ , a j b • W ~ ~ .. '.. p ' N ~ r ~ V \ ~ ~ ~.• N r _ ~~ V N 1y. ~ ~. ~~I ~. ~ \ ~~ ~ ~ • i ---- r~ r ~: ;~ ~, ,~ ~~ °' N ~ ~ ~ ~: ~, N ~' .. ,,, ~ v ~ i. Crl F, % . ~•, N •/+ %• ~nQ /.•~+ ^ ~ r'~ ~ N /,, i' ~•. N~Gv, G! ~• ~, `.. / .y~ ~~ y~' / 'J~ HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 49 ' Agenda July 18, 1994. Issue Statement: Approval of stipulations, condemnation action CSM project, Phase I. Background: On April 11, 1994, the HRA approved condemnation and a 90 day quick take on the Phase I property. This made it possible to begin construction yet this summer. Under terms of the Contract For Private Development with CSM, CSM pays all the costs associated with the condemnation including the acquisition and relocation costs. Even though a condemnation petition was filed, negotiations to purchase property directly continued. As of this writing, proposed settlements or stipulations have been obtained for three properties; Southtown Village Apartments, Tandem Press and Emerson Avenue Congregational Church (negotiations are continuing for the Cutler Animal Hospital property. It is possible that a stipulation for that property may become available by the time of the HRA meeting. If so, it will be presented to the HRA at that time). A negotiated .settlement is almost always desirable over setting -~ value through condemnation. In condemnation, the determination of value is beyond the control of the buyer and seller. Following are some of the major points for each of the three stipulations: Southtown Village Apartments (Parcel 8) HRA will pay $1,850,000 at closing on or before July 31, 1994 to Figge (owner). Figge is to pay real estate taxes due and payable in 1994 and prior years and unpaid special assessments. Figge will assign all leases and rents and security deposits held by him to the HRA. Agreement contingent upon HRA approval on or before July 18, 1994. To cover utility bills, $5,000 of proceeds will be escrowed by HRA until final utility bills are available. Jensen Tandem Printing Inc and Ted Samsel (Parcel 4) HRA will pay to Jensen's $165,000; to Tandem and Samsel $125,000 on the date of closing August 1, 1994. Sellers to pay .taxes and special assessments. HRA to receive possession on or before August 11, 1994. For each .day between August 1 and August 11 property not vacated, HRA receives $1,000/day penalty. An amount to be determined will be withheld from the proceeds of sale to cover any unpaid utility bills. The agreement is contingent upon HRA approval on or before July 18, 1994. Attached to the stipulation is an Award of Commissioners form. This document would be completed by the court appointed condemnation commissioners and would reflect the terms of the settlement as stated in the stipulation. Emerson Church (Parcel 3) This is a stipulation of dismissal. The court is being asked to approve the HRA's dismissal of the church from the condemnation action. The dismissal is being sought because the HRA and church have negotiated a satisfactory settlement. The stipulation recites the items of agreement: The HRA has an agreement with CSM to redevelop the site; The church and CSM have negotiated an agreement for the direct sale of the property and purchase by the HRA is no longer necessary; The church agrees that its agreement with CSM provides for all relocation benefits and assistance to which it is entitled and will not seek any benefits from the HRA. Negotiations with the Maki's for a stipulation agreement continue. Recently, a second offer in the amount of $700,000 was made to Maki's, subject to approval by the HRA. The offer was for all real estate, improvements, immovable fixtures and relocation benefits. In return, Maki's would convey clear title to the HRA on or before August 1, 1994. The only property for which a stipulation is not expected is that property owned by Mr. Adelmann. To date there has been no response to the initial offer to purchase from the HRA. Recommended Motion: Adopt a motion approving the stipulations for Parcels 3, 4 and 8. Basis of Recommendation: 1. Stipulations make it possible for buyer and seller to control the terms of settlement and avoid the uncertainty of condemnation. 2. CSM is in agreement with the stipulations and their terms. 3. Under the terms of the Contract for Private Development with CSM, CSM is obligated to pay all costs related to the condemnation. Alternative Recommendation: 1. Reject the stipulations. 2. Modify the stipulations. Discussion/Decision Mode: The stipulations for parcels 4 and 8 require action by the HRA before or on July 18, 1994. Respect 11 submitted, James D. Prosser Executive Director JDP:cak Cas® Type: Condemnation STATE t~F MINNESOTA DISTRICT COURT CQUNTX OF I~ENNEFIN FOURTH JUDICIAL DISTRICT Housing and Redevelopment ) Authority in and for the City of ) Richfield, a public body ) corporate and politic under the ) laws of the State of Minnesota, ) STIPULATION QF DISMISSAL `Petitioner, ) {PARCEL 3} vs. ) Court File, No. CD-2324 ) City of Richfield, et al . , ) ) Respondents. ) THIS STIPULATION is made by and between Petitioner Housing and Redevelopment Authority in and for the City of R~.chi'ield, Minnesota ("HRA"} and Respondent Emerson Avenue Community Chtata~ch (Congregational) ("Emerson Church"), each of whom is acting by and ~j through its counsel. '~ WFIEREA$, Ent®rson Church is the fee owner of the real estate identified as Parcel 3 and described in the Petition, as amended, fil®d her®in (the "Property"); and WHEREAS, the HRA commenced this action in order to acquire fee simple tit~.e to the properties described in the Petition, including the Property, ,for redevelopment purposes; and W~YEREAS, the HRA has entered into a contract for private redevelopment of the site with CSM Corporation ("CSM"}, under which the HRA agreed to convey the Property, upon acquisition by the HRA, to CSM; and cas~xsa~ 1 RC125-b8 T~HEREAS, Emerson Church has entered into an agreement with CSM for the direct sale of the Property to CSM, and acquisition by the HRA is no longer required; and WHEREAS, the partie.~ to this stipulation have negotiated a full and final settlement of the instant action as it pertains to the interests of Emerson Church. ' NOW, THEREFORE, the HRA and Emerson Church agree as follows: 1. The HRA agrees to dismiss the instant, action as it re~,atea to Parcel 3 and further agrees to dismiss Emerson Church as a party to the action. 2. Emerson Church stipulates that under its agreement with CSM, Emerson Church will receive reimbursem®nt of moving expenses and other payments in lieu of relocation benefits.and assistance under Minnesota Statutes, Section 117.52 to }.17.56. Emerson Church further agrees that payment of such expenses by CSM ,shall be deemed for all purpo€~es to fulfill the obligations of HRA~to provide such relocation benefits and assistance. Emerson Church releases and ' waives any claim against the HRA far relocation benefits or assis3tance arising out of the instant action. 3. Emerson Church releases and waives any claim against the HRA for reimbursement of attorney's Fees under Minnesota Statutes, Seat~.on 117.105, subd. 2. 4. Emerson Church releases and waives any claim against the HRA for reimbursement of appraisal fees under Minnesota Statutes, Section 11?.232. r.~72ss~ ~ RC325-68 5. Emerson Church waives any and a~.l rights to any further notiCe~ or hearings regarding the .instant condemnation action. I?ated Dated: Dated• OA8T2937 R~129-b8 HOLMES & GRA'~EN, CHARTERED Ey Robert J. Lindell (63277} Corrine A. Heine (149743) 470 Pi~.lsbury Center Minneapolis, Minnesota 55402 Telephone: (612) 33 79300 Attorneys for Fetitioner Hous3x7tg and Redevelopment Authority in and for the City of Richt~.eld LEQNARD, STREET & DEINARD $yBradley J. Gunn (132 38) 150 South Fifth Street Suite 2300 Minneapolis, MN 55402 Telephone: (612) 335-1500 Attorney far Respondent Emerson Avenue Community Church EMERSON AVENUE COMMUNITY CIiURCH Hy Its By Its 3 Case Type: Condemnation STATE OF MINNESOTA DISTRICT COURT COUNTY OF HENNEPIN FOURTH JUDICIAL DISTRICT Housing and Redevelopment ) Authority in and for the City of ) Richfield, a public body ) corporate and politic under the ) laws of the State of Minnesota, ) STIPULATION OF SETTLEMENT Petitioner, ) (PARCEL 4) Vg~ ) Court File No. CD-2324 City of Richfield, et al., ) Respondents. ) THIS AGREEMENT is made this day of , 1994, by and among ROBERT C. JENSEN and MERILYN B. JENSEN, husband and wife ("Jensens"), TANDEM PRINTING, INC., a Minnesota corporation ("Tandem"), TED SAMSEL, D/B/A/ SAMSEL ELECTRICS ("Samsel") and THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA, a Minnesota public body corporate and politic ("HRA"). I. Recitals 1.01. Jensens are the fee owners of certain land located at 7716 Colfax Avenue South, Richfield, Hennepin County, Minnesota, as described in the attached Exhibit A (the "Property"). 1.02. Tandem has a leasehold interest in the Property and has subleased a portion of the Property to Samsel. 1.03. A judgment search prepared by a reputable title insurance company indicates that the Property may be subject to the liens of the following judgments (hereinafter collectively referred CAH72893 1 RC125-68 to as the "Judgments"): (1) judgment against Robert Jensen dated July 16, 1985, docketed August 1, 1985, Case No. 85-12486, in the amount of $19,974.77, in favor of Wabasso State Bank; (2) judgment against Robert Jensen dated March 18, 1988, docketed March 18, -1988, Case No. 8803082, in the amount of $3,205.00, in favor. of Aslesen Co.; and {3) judgment against Robert C. Jensen dated January 22, 1988, docketed April 6, 1988, Case No. 885843, in the amount of $1,546.24, in favor of Miller & Valentini, P.A. 1.04. The HRA commenced condemnation proceedings herein to acquire the Subject Property. 1.05. The HRA, Jensens, and Tandem desire to settle and agree upon the amount of just compensation due for the Property, the amount of relocation benefits due to Tandem and Samsel, and to stipulate to an award of commissioners in order to avoid further litigation. and hearings. II. Agreement 2.01. Settlement Amount: Jensen. On the Closing Date (as defined below) and subject to performance of this Agreement by Jensens and Tandem and satisfaction of all contingencies in this Agreement, the HRA agrees to pay to Jensens the amount of One Hundred Sixty-five Thousand and no/100ths Dollars ($165,000.00). a. Acceptance. Jensens agree to accept the $165,000.00 as full, complete, and final compensation for acquisition of the Property and as a full, complete and final compromise of any and all claims arising out of the subject taking, including but not limited to just compensation, interest, reimbursement for appraisal fees, real estate taxes and attorney's fees. b. Allocation. Jensens stipulate that they are not "dis- placed persons" as that term is defined in Minnesota Statutes, Section 117.50 (1992), and that they are not entitled to relocation benefits. as a result of the CA872893 ,l RC125-68 subject taking, under. Minnesota Statutes, Section 117.52 to 117.56 or the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42 U.S.C. ~~ 4601 to 4655, as amended, and the regulations adopted pursuant thereto. The $165,000.00 is therefore allocable entirely to just compensation for the Jensens' interest in the Property. 2.02. Settlement Amount: Tandem. On the Closing Date and subject to performance of this Agreement by Jensens and Tandem and satisfaction of all contingencies in this Agreement, the HRA agrees to pay to Tandem and Samsel the amount of $125,000.00. a. Acceptance. Tandem and Samsel agree to accept the $125,000.00 as full, complete, and final compensation for acquisition of the Property and as a full, complete and final compromise of any and all claims arising out of the subject taking, including but not limited to just compensation for the taking of the Property (including any fixtures), interest, reimbursement for appraisal fees, real estate taxes, attorney's fees, and relocation assistance benefits. b. Allocation. Tandem and Samsel are entitled to relocation benefits and assistance as required by Minnesota Statutes, Section 117.52 to 117.56. The parties agree that $ of the settlement amount is allocable to relocation benefits payable to, Tandem and Samsel and $ represents just compensation for Tandem's and Samsel's leasehold interest in the Property. 2.03. Contingent Agreement. This Agreement is contingent upon (a) the approval of the Board of Commissioners of HRA on or before July 18, 1994; (b) the Closing occurring pursuant to this Agreement on or before July 31, 1994; and (c) issuance of orders by the Court herein with respect to all properties described in the condemnation petition (i) approving the condemnation petition and appointing commissioners; and (ii) authorizing payment or deposit by the petitioner to transfer of title and possession pursuant to Minn. Stat. §117.042. If this Agreement is not approved by the Board of Commissioners of HRA, it shall be rescindable by any party cns~zsea 3 RC125-68 to this Agreement, and Jensens, Tandem .and/or Samsel may object to issuance by .the District Court of 'the orders attached hereto as Exhibit B and C. If the Agreement is approved. by the Board of Commissioners of HRA, the parties hereby. stipulate and agree to the issuance by the District Court herein of an Order Approving Petition and Appointing Commissioners in substantially the form attached as Exhibit B and the issuance by the District Court herein of an Order Authorizing Payment or Deposit and Transfer of Title and Possession in substantially the form attached hereto as Exhibit F. 2.04. Closing Date. The Closing Date shall be August 1, 1994. The closing shall be held at the offices of Holmes & Graven, Chartered, 470 Pillsbury Center, Minnesota 55402 or at such other place as the parties may agree to in writing. 2.05.' Documents to be Delivered at Closing. On the Closing Date, the Jensens shall deliver to the HRA, evidence satisfactory to the HRA and the HRA's title company that the Judgments have been satisfied or released or do not constitute a lien against the Property. (In the absence of such evidence, the HRA may deduct from the Jensen settlement amount an amount sufficient to satisfy any such judgment and proceed to close subject to the judgment.) Tandem and Samsel shall deliver to the HRA evidence that real estate taxes and special assessments due and payable in 1994 have been paid. (In the absence of such evidence, the HRA may deduct from the Tandem/Samsel settlement amount an amount sufficient to pay unpaid real estate taxes and special assessments.) The HRA shall deliver the following items: CAH72893 4 RC125-68 a. To Jensens, a check in the amount of $165,000.00, minus amounts as necessary to satisfy any unsatisfied judgment that encumbers the Property. b. To Tandem and Samsel, a check in the amount of $125,000.00, minus any amounts held in escrow pursuant to paragraphs 2.06 and 2.07 of this Agreement and minus any amounts required to pay real estate taxes payable in 1994 and installments of special assessment payable therewith. 2.06. Possession. Tandem and Samsel shall vacate and deliver possession of the Property to the HRA on or before August il, 1994. For each day after August 1, 1994 that Tandem or Samsel remain in possession of the Property, Tandem shall pay a penalty to the HRA of $1,000. Tandem and Samsel agree that Holmes & Graven, Chartered, attorneys for HRA ("Holmes") may escrow the amount of $11,000 out of the proceeds due to Tandem and Samsel at Closing, to ensure payment of this penalty. Holmes shall release the escrowed funds, minus applicable penalties, upon notification by Tandem and verification by HRA that possession of the Property has been delivered to the HRA. 2.07. Final Utilities. Promptly following Closing, HRA shall cause the City of Richfield's Utility Department personnel to conduct a final reading of water meters serving the Property and determine the amount of the final bill for water consumed by Tandem and Samsel in connection with the Property ("Final Water Bill"). Promptly following Closing, Tandem and Samsel shall also cause Minnegasco, Northern States Power Company and (which Tandem and Samsel represent to be their refuse haulers serving the Property), to render their final billings for services rendered to the .Property for periods prior to the Date of Closing ("Final Service Bills"). Because the amount of the Final Water CAH72893 RC125-68 5 bill and Final Service Bills are not known as of the date hereof but the parties agree they are likely to collectively aggregate to less than $ the HRA, Tandem and Samsel agree. that Holmes shall withhold payment to Tandem of $ ("Final Escrow") until such time as the amount of the Final Water Bill and Final Service Bills are known. If Tandem and Samsel do not pay the amounts of the Final Water Bill and Final Service Bills prior to 1994, Holmes shall (a) pay the Final Water Bill and Final Service Bills, and (b) mail copies- of the Final Water Bill, the Final Service Bill and Holmes' checks in payment of the Final Water Bill and Final Service Bills to Tandem and Samsel, together with Holmes' check payable to Tandem and Samsel for such portion of the Final Escrow as is not required to satisfy the Final Water Bill and Final Service Bills. 2.08. Personal Property. a . Jensens have no personal property which is located on the Property. b. Tandem and Samsel agree to remove from the Property, at Tandem's and Samsel's sole expense, all movable personal property and trade fixtures, except those items specified in the attached Exhibit D, on or before the date when possession is delivered pursuant to paragraph 2.06 of this Agreement. All personal property or trade fixtures not removed by the date of delivery of possession shall be deemed abandoned and shall be the property of the HRA. c. Tandem warrants that it will defend, indemnify and hold harmless HRA with respect to any claim by the lessor of any equipment leased at the Property by Tandem or Samsel from third parties ("Leased Personal Property"), against any claims by the owners of such leased equipment or others on their behalf that Tandem or Samsel has failed to return such equipment, that it was damaged when returned or that Tandem or Samsel otherwise owes them amounts in relation to such items. CAS72893 RC125-68 6 2.09. Award of Commissioners. Immediately following Closing, Holmes & Graven, as attorneys for HRA, shall request issuance by the Court Appointed Condemnation Commissioners of the form of Award of Damages which is attached hereto and incorporated herein as Exhibit E. 2.10. Waiver of Notice and Appeal. Jensens, Tandem, and Samsel and each of them, acknowledge that he/she/it were properly served with notice of this proceeding and each waives any further right to contest or appeal the judicial determinations made in this proceeding. At any time after the Closing, the HRA may present the Stipulation to be delivered at Closing to the commissioners to be appointed by the Court in the Action, without notice to Jensens, Tandem, or Samsel. 2.11. Warranties. Jensens, Tandem, and Samsel, and each of them, make the following representations and warranties: a. That they have not been represented in connection with the sale of the Property by any real estate broker or salesperson; and Jensens, Tandem and Samsel each agree to indemnify, defend, and hold HRA harmless against and in respect of any such obligation and liability based in any way upon any agreement, arrangement, or understandings made or claimed to have been made by any of them with any third person. b. That except for Jensens, Tandem, Samsel, the holders of the Judgments, City of Richfield, and Hennepin .County, no other person has an ownership interest in the Property or any right to receive a portion of the Settlement Amount. c. If any person or party other than Jensens, Tandem, Samsel, the holders of the Judgments, City of Richfield, or Hennepin County asserts a claim that they have an ownership interest in the Property or are entitled to receive a portion of the Settlement Amount, Jensens will defend, indemnify and hold HRA harmless from any such claim. CAH72893 .' RC125-68 2.12. Survival of Agreements. The provisions of this Agreement shall survive the Closing, notwithstanding the terms and conditions of any law or court decision to the contrary. Any party .considering itself aggrieved by the failure of any other party to this Agreement to fully perform in accordance with the provisions of this Agreement may seek relief by filing and serving a motion in the Action upon the other parties to this Agreement, at the addresses indicated in paragraph 2.14 of this Agreement, to be heard by the Judge of District Court to whom this matter has been assigned, such notice to otherwise conform with applicable court rules. 2.13. Settlement of All Claims. Jensens, Tandem, and Samsel, and each of them, hereby waive any further claims against HRA, the City of Richfield and CSM Corporation for compensation due to the taking of the Property in this proceeding, including relocation benefits. Jensens, Tandem, and Samsel shall be estopped by this Agreement from asserting any additional consideration in these proceedings. 2.14. Notices. Any notice desired or required to be given pursuant to this Agreement shall be delivered personally to or deposited in the United States mail, certified mail return receipt requested, postage prepaid and addressed to: If Notice to Jensens: Robert and Merilyn Jensen 7328 Fremont Avenue South Richfield, MN 55423 If Notice to Tandem: Tandem Printing, Inc. CAH72893 8 RC125-68 Attn: Dave Kostka If Notice to Samsel: Ted Samsel If Notice to HRA: Bruce Palmborg Housing and Redevelopment Coordinator City of Richfield 6700 Portland Avenue South Richfield, MN 55423 With copy to: Robert J. Lindall Holmes & Graven, Chartered 470 Pillsbury Center Minneapolis, MN 55402 2.15. Effective Date of Agreement. The parties agree that this Agreement shall not be effective until formally approved by the HRA Board of Commissioners and executed by all parties hereto. IN WITNESS WHEREOF, the parties have executed this agreement as of the date and year written above. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD By Its Chair By Its Executive Director Robert C. Jensen cxs~assa 9 RC125-68 Merilyn B. Jensen TANDEM PRINTING, INC. By Tts By Its Ted Samsel, individually and doing business as Samsel Electrics G1H72893 1 O RC125-68 EXHIBIT A Legal Description of the Property Parcel 4 (Abstract) (PID # 33-028-24-44-0026): 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,. CAH72893 RC125-68 10 Type: Condemnation STATE OF MINNESOTA COUNTY OF HENNEPIN Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota, Petitioner, vs. City of Richfield, a Minnesota municipal corporation; Emerson. Avenue Community Church (Congregational), a Minnesota religious corporation; County of Hennepin; Robert C. Jensen; Merilyn B. Jensen; Wabasso State Bank, a state bank; Aslesen Company, a Delaware corporation; Miller & Valentini, P.A., a Minnesota professional association; Tandem Printing, Inc.; Robert F. Adelmann; Lorraine M. Adelmann; Daniel Adelmann, as Trustee of the Robert F. Adelmann Trust; David Adelmann, as Trustee of the Robert F. Adelmann Trust; Troy W. Ford and William Vaughan, individually and d/b/a Ultimate Detaile=s; James H. Cutler; Nancy B. Cutler; Donald T. Maki, individually and d/b/a Cutler Small Animal Hospital & Clinic; Jeannine M. Maki; Erskine Bowles, as Administrator of the Small Business Administration, a United States agency; Naegele Outdoor Advertising, Inc., a Georgia corporation; State of Minnesota; William C. Figge; Spouse of William C. Figge; Twin City Federal Savings and Loan Association, n/k/a TCF Bank Minnesota fsb, a federal savings bank; Sherry Aho; Raymond Annis; Nancy Benson; Katherine Blackford; Rhonda Bonick; Ray Bouie; Mary Brown; Colleen Cauley; Dawn Cauley; Lorrie Christiansen; Michael Christianson; Matthew Christianson; Judith Cripps; Jacqueline Cripps; Kathy Detert; Dave Dodge; Wendy Dodge; -Jay Dokken; Blanca Dominquez; Janet Duffy-Froelich; Sheila Elfering; Robert Etzler; Jon Evenson; Mark DISTRICT COURT FOURTH JUDICIAL DISTRLCT COURT FILE NO. CD-2324 AWARD OF COMMISSIONERS PARCEL 4 1fAW729G5 RC125-68 Follingstad; Ruben Garza; Sylvia Grummer; Scott Heine; Sharon Hochstedler; Shirley Hofstedt; Robert Hofstedt; David Hook; Ann Hultman; Linda Kasperek; Roger Keck; Duane Kokesch; Jean Kramer; Helen Lueder; Mark Lueder; Carryl Magnuson; JoAnne Mahovsky; Betty Martin; Felipe Martinez; Leah Moran; Louis Nau; Lynn Nurkka; Eric Oines; Debbie Omafowokan; Ismail Omar; Sada Omar; Charles Pagenkopf; Teresa Perez; Uriel Perez; Mariano Perez; Miguel Rangel; Theresa Ryan; Mary Ann Schultz; Jason Schwenn; Toni Seanger; Erik Senty; Georgia Smith; Enrique Solis; Hugo Solis; Mary Stanek; Janette Steinberg; Mark Steinman; Jesudas Sunbarajan; Rajasingh Sunbarajan; Troy Swiers; Bobby W. Thompson; Michael Udofot; Richard Vasquez; James Walseth; LaVon Whalen; Keith Whitaker; James Whittaker; Richard Wolfe; Todd Wood, Respondents. The undersigned Commissioners, appointed by the above-named Court, having qualified according to law, met as directed by the Order of the Court appointing them as Commissioners, given notide in writing of the time and place of their meetings, heard the allegations and proofs of all persons interested in being heard concerning the matters committed to them, heard testimony publicly under oath and in their presence viewed the lands hereinafter described, and completed hearings with respect to said lands, now hereby make the following award of damages, which in their judgment will result to the owners of the premises described herein and to any party having an interest therein by reason of the taking of said premises by the Petitioner. The real estate subject to this Award of Damages and this proceeding is legally described as follows: RAW72945 .l RC125-68 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. Property Address.: 7716 Colfax Avenue South, Richfield, MN. The total award of damages to all persons or parties interested in said premises is in the sum of $ Said award is allocated among the parties as follows: Robert C. Jensen and Merilyn B. Jensen; Wabasso State Bank; Aslesen Company, Miller & Valentini, P.A. $ Tandem Printing, Inc.; Ted Samsel, d/b/a Samsel Electric $ The aforesaid award of damages and payment therefore is made subject to the following: 1. The Owners' obligation to pay the taxes due and payable in the year 1994 and prior years, with penalties, if any; and 2. The Owners' obligation to pay all of the unpaid special assessments and future installments thereof which were levied or pending as of the date hereof, if any; and 3. The Owner's obligation to pay such street maintenance and other annual charges as are a lien or are lienable against the Subject Property as of the date hereof, if any. Unless otherwise stated, this award reserves all public street easements and all public alley easements in favor of the City of Richfield. xavna9a5 3 RC125-68 We further report that each of the undersigned Commissioners viewed the property described in the Petition and that all the undersigned participated in hearing testimony of the interested parties and participated in ascertaining, determining, assessing and awarding damages for the taking of said premises. Date: ,.1994 Commissioner Commissioner Commissioner u-~nz9as 4 RC12s-68 STATE OF MINNESOTA ) ss. COUNTY OF HENNEPIN ) AFFIDAVIT OF SERVICE BY MAIL being duly sworn, says that on the day of , 1994, she served the attached Award of Commissioners on the parties on the attached service list, and their counsel, if any, at the addresses listed in said service list, by mailing to them a true and correct copy thereof, enclosed in an envelope, postage prepaid, and by depositing the same in the post office at Minneapolis, Minnesota directed to said addresses. Notary Public Subscribed .and sworn to before me this day of , 1994. Notary Public RAW72945 5 RC125-68 Case Type: Condemnation STATE OF MINNESOTA DISTRICT COURT COUNTY OF HENNEPIN FOURTH JUDICIAL DISTRICT Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota, Petitioner, vs. City of Richfield, a Minnesota municipal corporation; Emerson Avenue Community Church (Congregational), a Minnesota religious corporation; County of Hennepin; Robert C. Jensen; Merilyn B. Jensen; Wabasso State Bank, a state bank; Aslesen Company, a Delaware corporation; Miller & Valentini, P.A., a Minnesota professional association; Tandem Printing, Inc.; Robert F. Adelmann; Lorraine M. Adelmann; Daniel Adelmann, as Trustee of the Robert F. Adelmann Trust; David Adelmann, as Trustee of the Robert F. Adelmann Trust; Troy W. Ford and William Vaughan, individually and d/b/a Ultimate Detailers; James H. Cutler; Nancy B. Cutler; Donald T. Maki, individually and d/b/a Cutler Small Animal Hospital & Clinic; Jeannine M. Maki; Erskine Bowles, as Administrator of the Small Business Administration, a United States agency; Naegele Outdoor Advertising, Inc., a Georgia corporation; State of Minnesota; William C. Figge; Spouse of William C. Figge; Twin City Federal Savings and Loan Association, n/k/a TCF Bank Minnesota fsb, a federal savings STIPULATION OF SETTLEMENT Parcel 8 Court File No. CD-2324 RJL'72322 1 RC125-68 bank; Sherry Aho; Raymond Annis; ) - Nancy Benson; Katherine ) Blackford; Rhonda Bonick; Ray ) Bouie; Mary Brown; Colleen ) Cauley; Dawn Cauley; Lorrie j Christiansen; Michael ) Christianson; Matthew ) Christianson; Judith Cripps; ) Jacqueline Cripps; Kathy Detert; ) Dave Dodge; Wendy Dodge; Jay ) Dokken; Blanca Dominquez; Janet ) Duffy-Froelich; Sheila Elfering; ) Robert Etzler; Jon Evenson; Mark ) Follingstad; Ruben Garza; Sylvia ) Grummer; Scott Heine; Sharon ) Hochstedler; Shirley Hofstedt; ) Robert Hofstedt; David Hook; Ann ) Hultman; Linda Kasperek; Roger ) Keck; Duane Kokesch; Jean Kramer; ) Helen Lueders Mark Lueders Carryl ) Magnuson; JoAnne Mahovsky; Betty ) Martin; Felipe Martinez; Leah ) Moran; Louis Nau; Lynn Nurkka; ) Eric Oines; Debbie Omafowokan; ) Ismail Omar; Sada Omar; Charles ) Pagenkopf; Teresa Perez; Uriel ) Perez; Mariano Perez; Miquel ) Rangel; Theresa Ryan; Mary Ann ) Schultz; Jason Schwenn; Toni ) Seanger; Erik Senty; Georgia ) Smith; Enrique Solis; Hugo Solis; ) Mary Stanek; Janette Steinberg; ) Mark Steinman; Jesudas ) Sunbarajan; Rajasingh Sunbarajan; ) Troy Swiers; Bobby W. Thompson; ) Michael Udofot; Richard Vasquez; ) -James Walseth; LaVon Whalen; ) Keith Whitaker; James Whittaker; ) Richard Wolfe; Todd Wood, ) Respondents. This Agreement is entered into as of the day of , 1994 by and between the Housing and Redevelopment Authority in and for the .City of Richfield, petitioner herein and a public body corporate and politic under the laws of Minnesota ("HRA") and William C. Figge ("Figge"), owner of the real estate located at RJI,72322 2 RC125-68 7721 Emerson Avenue South, Richfield, MN 55423 which is described in Exhibit A attached hereto .(the "Subject Property"). I. RECITALS 1.01. Figge is the owner in fee simple of the Subject Property subject to the following encumbrances: (a) Mortgage dated July 16, 1971,-filed August 2, 1971 as Document 3898093 between William C. Figge, as Mortgagor, and Twin City Federal Savings and Loan Association, as Mortgagee, to secure the_ repayment of $565,000.00; (b) real estate taxes; (c) special assessments; and (d) rights of State of Minnesota, including snow fence easements and access restrictions created by Final Certificates filed January 4, 1952 as Document No. 2732832 and filed September 20, 1963 as Document No. 3431114. - 1.02. The HRA commenced condemnation proceedings herein to acquire the Subject Property. 1.03. Figge acknowledges that he was properly served with notice of this proceeding and waives any further right to contest or appeal the judicial determinations made in this proceeding. 1.04. This Agreement is intended to describe the terms and conditions under which HRA and Figge will compromise and settle all claims of Figge for damages resulting from the taking of the Subject Property in this proceeding. II. AGREEMENT NOW, THEREFORE, in consideration of the premises and their mutual promises, it is hereby stipulated by and between the parties hereto as follows: RJS,~z3za 3 RC125-68 2.01. Agreement to Sell. Effective on the "Date of Closing" defined herein, Figge agrees to bargain, sell, quitclaim and convey marketable title of the Subject Property, and all fixtures, trade fixtures and leasehold improvements located therein, to HRA, in accordance with documents acceptable to counsel for HRA. Figge represents that he is unmarried. 2.02. Payments. On the Date of Closing, HRA agrees to pay Figge the sum of $1,850,000 ("Settlement Amount") as the purchase price for the Subject Property and in settlement of any and all claims by Figge against HRA in connection with the Subject Property, including but not limited to relocation benefits, minus such amounts as are required to satisfy encumbrances of record and Figge's other costs of closing under this Agreement. 2.03. Contingent Agreement. This Agreement is contingent upon (a) the approval of the Board of Commissioners of HRA on or before July 18, 1994; (b) the Closing occurring pursuant to this Agreement on or before July 31, 1994; and (c) issuance of orders by the Court herein with respect to all properties described in the condemnation petition (i) approving the condemnation petition and appointing commissioners; and (ii) authorizing payment or deposit by the petitioner to transfer of title and possession pursuant to Minn. Stat. 5117.042. If this Agreement is not approved by the Board of Commissioners of HRA on or before July 18, 1994, it shall be rescindable by either HRA or Figge and Figge may object to issuance by the District Court of the orders attached hereto as Exhibit F and G. If the Agreement is approved by the Board of Commissioners of HRA on or before July 18, 1994, HRA and Figge als,na22 4 AC725-68 hereby stipulate and agree to the issuance by the District Court herein of an Order Approving Petition and Appointing Commissioners in substantially the form attached as Exhibit F and the issuance by the District Court herein of an Order Authorizing Payment or Deposit-and Transfer of Title and Possession in substantially the form attached hereto as Exhibit G. 2.04. Date of Closing Defined. The Date of Closing is the date. upon which HRP,'s payment of the Settlement Amount to or for .the benefit of Figge shall be paid upon the issuance by the Court Appointed Commissioners to the Award of Damages with respect to the Subject Property in substantially the form attached hereto as Exhibit J. Documents shall be executed and in recordable form. The Date of Closing shall be within 10 days following the last to occur of the events described in Section 2.03 but. in any event shall be on or before July 31, 1994. Closing shall occur at the offices of Holmes & Graven, Chartered, 470 Pillsbury Center, Minneapolis, MN 55402 unless otherwise agreed. 2.05. Possession. Figge shall vacate and deliver possession of the Subject Property on the Date of Closing. 2.06. Adjustments. The right to receive all income and the duty to pay all expenses accruing to or attributable to the Subject Property shall be adjusted to the Date of Closing. 2.07. Elimination of Encumbrances. The parties agree that: (a) immediately following approval of this Agreement by the HRA Board, Holmes & Graven, as attorneys for HRA, shall request issuance by the Court Appointed Condemnation Commissioners of the form of Award of Damages which is attached hereto and incorporated Rsr,~2aaz 5 RC125-68 herein as Exhibit J determining the value of the Subject Property to be equal to the Settlement Amount herein; (b) on or after the Date of Closing, HRA may deposit the Settlement Amount with the District Court Administrator pursuant to Minn. Stat. Ch. 117 unless on or before the Date of Closing: (i) Figge shall deposit with Holmes & Graven partial releases or satisfactions, in recordable form approved by counsel for HRA, which will cause the Subject Property to be released from the lien of all mortgages and other liens encumbering the Subject Property; (ii) Figge shall pay the real estate taxes payable in 1994 and prior years, and the entire unpaid balance of special assessments, water bills and other municipal charges levied or pending against the Subject Property, as of the Date of Closing, including interest and penalties which may be or become due thereon, if any; (iii) Figge shall assign HRA all leases, rents and security deposits relating to the Subject Property by written assignments in form acceptable to Holmes & Graven; and ( iv) at his expense, Figge shall complete any other preconditions required by Holmes & Graven to eliminate all encumbrances against the Subject Property except the Permitted Encuatbrances listed on Exhibit B attached hereto. 2.08. Final Utilities. Promptly following Closing, HRA shall cause the City of Richfield's Utility Department personnel to conduct a final reading of water meters serving the Subject Property and determine the amount of the final bill for water consumed by Figge in connection with the Subject Property ("Final Water Bill"). Promptly following Closing, Figge shall also cause Minnegasco, Northern States Power Company and ~,n~za22 6 RC125-68 (which Figge represents to be his refuse haulers serving the ~--~. Subject Property),. to render their final billings for services rendered to the Subject Property for periods prior to the Date of Closing ("Final Service Bills"). Because the amount of the Final Water bill and Final Service Bills are not known as of the date hereof but the parties agree they. are likely to collectively aggregate to less than $5,000, the HRA and Figge agree that Holmes & Graven, Chartered, attorneys for HRA, ("Holmes") shall withhold payment to Figge of $5,000 ("Final Escrow") until such time a'd~ the amount of the Final Water Bill and Final Service Bills are known. If Figge does not pay the amounts of the Final Water Bill and Final Service Bills prior to , 1994, Holmes shall (a) pay the Final Water Bill and Final Service Bills, and (b) mail - copies of the Final Water Bill, the Final Service Bill and Holmes' checks in payment of the Final Water Bill and Final Service Bills to Figge, with copies to Figge's attorneys, together with Holmes' check payable to Figge.("Refund Check") for such portion of the Final Escrow as is not required to satisfy the Final Water Bill and Final Service Bills. 2.09. Survival of Agreements. The provisions of this Agreement shall-survive the Closing and conveyance of the Subject Property by Figge's Deed or this condemnation, notwithstanding the terms and conditions of any law or court decision to the contrary. Any party considering itself aggrieved by the failure of any other party to this Agreement to fully perform in accordance with the provisions of this Agreement may seek relief therefor by filing a motion in the above condemnation proceeding, together with RJS.~zazz ~ RC125-68 supporting memoranda, affidavits and proposed orders, and serving such motion, notice of the motion and other supporting documents upon the other party to this Agreement, and their counsel, at the addresses indicated in Section 2.17 of this Agreement, to be heard by the Judge of District Court to whom this matter has been assigned, such notice to otherwise conform with the rules of the above Court. 2.10. Effective Date of Agreement. The parties agree .that the Effective Date of this Agreement shall be the latest in time of the various dates on which the signators hereof execute this ..Agreement. 2.11. Closing Documents. Figge agrees to deliver, at Closing, (a) a standard form Sellers' affidavit showing no - bankruptcies or judgments, (b) a certificate that Figge is not a foreign national, (c) keys for the Subject Property, and (d) the additional documents listed on Exhibit C attached hereto. Figge agrees that the keys shall be individually labelled to identify the apartments and/or other rooms within the Subject Property to which they relate (by building), shall be delivered with the key board or in any other organized format in which they are grouped by Figge for his own use, and shall otherwise be delivered to HRA in an orderly manner. 2.12. Well Disclosure. Figge certifies that to the best of his knowledge, there are no wells located upon the Subject Property. 2.13. Figge's Representations. (a) Figge covenants and represents that he has not been represented in connection with the RJL72322 AC125-68 8 sale of the Subject Property by any real estate broker or salesperson (except Bailey Enterprises, Inc., whose commissions shall be paid by Figge) and Figge agrees to indemnify, defend, and hold HRA harmless against and in respect of any such obligation and liability based in any way upon any agreement, arrangement, or understandings made or claimed to have been made by Figge with any third person. (b) Figge covenants and represents that: (i) Except for Figge, TCF Bank Minnesota, City of Richfield and Hennepin County, no other party, including but not limited to those named in Exhibit A attached hereto has an ownership interest in the Subject Property or any right to receive a portion of the Settlement Amount; and (ii) If any person or party other than TCF Bank Minnesota, City of Richfield, or Hennepin County asserts a claim that they have an ownership interest in_the Subject Property or are entitled to receive a portion of the Settlement Amount, Figge will defend, indemnify and hold HRA ~~ harmless from any such claim. 2'.14. Closing Costs. The parties agree to the allocation of the duty to pay recording fees, state deed taxes and other closing costs required in connection with this Agreement as provided in Exhibit D attached hereto; provided that HRA shall pay all such amounts in the event that it acquires title to the Subject Property by payment or deposit pursuant to Minn. Stat. $ 117.042. 2.15. Personal Property. (a) Figge and HRA agree that the items of personal property which are listed on Exhibit H attached hereto are not being sold by Figge to HRA under this Agreement. Figge may remove these items from the Subject Property when authorized to do so under paragraph (d) of this Agreement. If and to the extent that Figge elects to remove these items, Figge shall remove and move them at his own expense; (b) Figge and HRA agree RJL72322 9 RC125-68 that the items of personal property which are listed on Exhibit I attached hereto and incorporated herein are being sold by Figge to HRA under this Agreement and that the Settlement Amount includes consideration for these items; (c) Figge and HRA agree that, even though the HRA is purchasing those items under this Agreement, any items of personal property which are listed on Exhibit I attached hereto and incorporated herein may be removed and moved by Figge from the Subject Property at his own cost at any time within five (5) days after the date of Closing. Thereafter, they shall be deemed to have been abandoned by Figge and HRA may dispose of them without any consideration for any previous rights of Figge; (d) Figge agrees that: (i) Figge shall defend, indemnify and hold harmless HRA with respect to any claim by the lessor of any clothes washers, clothes dryers and other equipment leased at the Subject Property by Figge from third parties ("Leased Personal Property"), against any claims by the Owners of such leased equipment or others on their behalf that Figge has failed to return such equipment, that it was damaged when returned or that Figge otherwise owes them amounts in relation to such items; (ii) Figge shall provide HRA at Closing with evidence of payment of all lease payments owed by Figge for use of any Leased Personal Property through and including the Date of Closing; (iii) within five (5) days after Closing, at his expense, Figge shall remove and return to the proper owner thereof any and all -Leased .Personal Property; and ( vi ) Figge agrees that, except as provided in Exhibit I attached hereto, any wall mounted and/or window mounted air conditioning units located in individual apartment units in the Subject Property are not personal ~,n~zazz 10 RC125-68 property, are being acquired.by HRA under this Agreement, and shall not be removed from the Subject Property by or on behalf of Figge. 2.16. Settlement of All Claims. It is agreed that Figge hereby waives any further claims against HRA, the City of Richfield and CSM, Inc. for compensation due to the taking of the ,Subject Property in this proceeding, including relocation benefits. Figge shall be estopped by this Agreement from asserting any additional consideration in these proceedings or pursuant to its Sublease. 2.17. Notices. Any notice desired or required to be given pursuant to this Agreement shall be delivered personally to or deposited in the United States mail, certified mail return receipt requested,. postage prepaid and addressed to: If Notice to Figge: William C. Figge c/o Gary Bailey Barley Enterprises, Inc. 484 N. Wabasha Street St. Paul, MN 55102 With copy to: Ted Meyer, Esq. Oppenheimer, Wolff & Donnelly 332 Minnesota Street 1700 West First Bank Building St. Paul, MN 55101 If Notice to HRA: Bruce Palmborg Housing and Redevelopment Coordinator City of Richfield 6700 Portland Avenue South Richfield, MN 55423 With copy to: Robert J. Lindall Holmes & Graven, Chartered 470 Pillsbury Center Minneapolis,, MN 55402 Rss.~zazz 11 RC125-68 Dated: 1994 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD By Its Executive Director Dated: 1994 WILLIAM C. FIGGE By William C. Figge, single Dated: 1994 OPPENHEIMER, WOLFF & DONNELLY By Theodore J. Meyer, # 332 Minnesota Street, #1700 St. Paul, MN 55101 612/223-2501 ATTORNEYS FOR WILLIAM C. FIGGE Dated: , 1994 HOLMES & GRAVEN, CHARTERED By Robert J. Lindall, #63277 Corrine Heine, #149743 470 Pillsbury Center Minneapolis, MN 55402 (612) 337-9300 ATTORNEYS FOR RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY Rsr,~zazz 12 RC125-68 List of Exhibits Exhibit A - Exhibit A to Condemnation Petition Exhibit B - Permitted Encumbrances as to Subject Property Exhibit C - List of Closing Documents Exhibit D - Allocation of Closing Costs Exhibit E - List of Occupied Apartments Exhibit F - Proposed Order Approving Petition and Appointing Commissioners Exhibit G - Proposed Order Authorizing Payment or Deposit and Transferring Title and Possession Exhibit H - List of Personal Property Which is Not Being Sold to HrtA Exhibit I - List of Personal Property Which is Being Sold to HRA Exhibit J - Agreed Form of Commissioners' Award of Damages R~~zszz 13 RC125-68 EXHIBIT B Permitted Encumbrances Against Subject Property: (a) Real estate taxes payable to Hennepin County and the State of Minnesota in 1995 and subsequent years (PID No. 33-028-24-43- 0010)' (b) Special assessments payable to the City of Richfield not now levied or pending; (c) Building and zoning -laws, ordinances, state and federal regulations; (d) Restrictions relating to use or improvement of the premises without effective forfeiture provisions; (e) Reservation of any mineral rights by the State of Minnesota; (f) Utility or drainage easements of record which do not interfere with use or development of the Subject Property, if any; and (g) Rights of the State of Minnesota, including snow fence easements and access restrictions created by Final Certificates filed January 4, 1952 as Document No. 2732832 and filed September 20, 1963 as Document No. 3431114. RJL72322 RC125-68 B- 1 Exhibit C PURCHASE BY THE RICHFIELD HRA FROM WILLIAM C. FIGGE LIST OF CLOSING DOCUMENTS 7721 EMERSON AVENUE SOUTH RICHFIELD, MN 55423 Document Fees Party Responsible for Doc. 1. Stipulation Agreement N/A Holmes & Graven 2. Closing Statement N/A HRA 3. Warranty Deed (William C. Figge to HRA Holmes & Graven 4. Certificate of Real Estate Value (William C. Figge to HRA) Holmes & Graven 5. Mortgage payoff letter from TCF Bank fsb re Mortgage Doc. No. 3898093 TCF 6. IRS Form W-9 Holmes & Graven 7. IRS Form 1099-5 NA Holmes & Graven 8. Special Assessment Search/Property Tax Statement City 9. Assignment of Leases, Rents, and Security Deposits Holmes & Graven l0. Letter to Tenants HRA 11. Water Bills City 12. Up-date searches (on closing date) Holmes & Graven 13. Final Utility Readings Owner 14. Foreign National Certificate 15. Keys-labeled with bldg. & unit numbers Owner RJL72322 RC125-68 C - 1 Exhibit E List of Occupied Apartments PJL72322 RC125-68 E - 1 Exhibit H List of Personal Property Which Is Not Being Sold to HRA RJL72322 RC125-68 H-1 Exhibit I List of Personal Property Which .Is Beinq Sold To HRA RJL72322 RC125-68 I -1 -`~ HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 48 Agenda July 18, 1994 Issue Statement: HRA review of ILN Phase II redevelopment proposals. Background: The contract for private development between the HRA and CSM Corporation delineated a deadline of August l for receipt of alternative proposals for the Phase II area of the ILN (area bounded by Lyndale and Colfax Avenues, 77th and 78th Streets). Attached are the relevant pages from the contract. At this writing, staff is aware of two alternative proposals; the Feldmann proposal and the Adelmann proposal. Additional alternatives could be advanced but staff has no knowledge of them. Recommended Motion: Set a date, time and location at which the alternative proposals for Phase II would be presented to the HRA. Basis of Recommendation: 1. The contract establishes a date by which the alternative proposals must be submitted. 2. The HRA must decide when they would like to have the proposals presented for consideration. Alternative Recommendation: Discuss another procedure for. reviewing the alternative proposals. Discussion/Decision Mode: The contract establishes November 1 as the date by which successful alternate proposals must prove financial feasibility. A timely evaluation of alternate proposals should be completed to maximize the time available to develop a financial package. Respectfully submitted, James D. Prosser Executive Director JDP:ds Section 3.2A . Phase II Property -Other Proposals . The rights, obligations and responsibilities of the parties as such relate to the Phase II Property and the Phase II Minimum Improvements are made expressly subject to the provisions of this Section, and the procedure provided for herein. (a) The owners and/or occupiers of lands lying within the Phase II Property shall have until August 1, 1994 to submit and obtain preliminary approval from the HRA for an alternative proposal to develop all or part of the Phase II Property. Such alternative proposal may be made jointly with the Redeveloper, separately or with others . (b) If alternative proposals together with any deposit required by the HRA to cover its review expenses are submitted, the HRA shall have the absolute discretion in all matters relating to the review of the proposals and the selection of a developer for all or part of the Phase II Property. In its selection process, the HRA will give consideration to factors which include the following: 1. the effect on the city's tax base; 2. the effect on employment; 3. the effect on existing businesses, property owners and employers in the area; 4. the aesthetic quality and its harmony with the design of Phase I; 5. the appropriateness of any proposed uses to the area; 6. the effect that the redevelopment will have in relation to the development of the Clover Leaf property and properties adjacent to Lydale Avenue; 7. the amount and nature of assistance requested; and 8. similarity with Redeveloper's plan for the Phase II Minimum Improvements. (c) If no alternative proposals are submitted within time to be considered on or before August 1, 1994, or if, following review of any alternative proposals the HRA confirms the Redeveloper as redeveloper for Phase II, the HRA shall so notify the Redeveloper in writing and the Redeveloper shall then proceed with its obligations under this Agreement with respect to the Phase II Property and the Phase II Minimum Improvements . JHD67324 RC125-68 1 Q (d) If the HRA, in its sole discretion, makes a preliminary selection of an alternative proposal, the proposer shall then be given until November 1, 1994 to (i) provide evidence satisfactory to the HRA that it has the necessary financial capability whether in the form of equity, borrowing or otherwise to successfully complete the redevelopment of the Phase II Property; (ii) can provide suitable and adequate security to the HRA to assure its performance; and (iii) has agreed to the terms for a contract for redevelopment of all or part of the Phase II Property. (e) If no proposer complies with the provisions of paragraph (d) by November 1, 1994, the HAA will so notify the Redeveloper in writing and the Redeveloper shall then proceed with its obligations under this Agreement relating to the Phase II Property and the Phase II Minimum Improvements. (f) In the event that the HRA selects a proposer to be the developer of all or part of the Phase II Property, the HRA will so notify the Redeveloper in writing and upon such- notification, the parties hereto shall be relieved from any further obligation to one another under this Agreement with respect to the Phase II Property and the Phase II Minimum Improvements . (g) If the HRA makes a selection pursuant to paragraph (f) above, the HRA agrees that it will give reasonable consideration consistent with the Phase II development to provide the Redeveloper the right to purchase from the HRA or through the selected proposer anon-exclusive easement over and across a portion of the Phase II Property and lying contiguous with the Phase I Property sufficient either to: (i) the establishment of enough parking spaces which, when combined with the parking on the Phase I Property would result in a parking ratio of 5 :1 for Phase I, or (ii) provide 100 additional spaces, whichever is less. This proposal shall not be construed to permit the creation of parking spaces other than those which are shown on the approved Concept Plan. (h) The provisions of this Section are intended to inform the Redeveloper of the procedure to be followed by the HRA with respect to Phase II and are not intended and shall not be construed as creating any right in individuals which are not parties to this Agreement . h~~~~-oe 11 r-~,. HOUSING .AND REDEVELOPMENT AUTHORITY HRA Letter No.47 Agenda July 18, 1994 Issue Statement: Authorize revision of contract for private development between CSM and HRA. Background: Best Buy has requested consideration of a new larger store concept for the CSM site in order to better position Best Buy in the market place. CSM Corporation is requesting this modification to its approved Phase I plan as well as modifications in parking, docking and foot print. A revised site plan is attached which places parking on Emerson Avenue and removes such from Colfax. This is required in order to separate Phase I from Phase II because of the possibility of different developers. The foot print reflects the new configuration as well as the redesign of the dock area. A comparison of the features of the initially approved plan and the proposed concept plan follows: Initial Revised Concept Concept Proposed Bldg. Area 114,484 s.f. 116,605 s.f. Best Buy 47,341 57,075 Sport Mart 42,000 43,968 CompUSA or other 25,143 15,561 Proposed Parking 501 (4.38/1,000 sf) 515 (4.42/1,000 sf) Recommended Motion: 1. Authorize the revision of the contract for private redevelopment between the HRA and CSM. 2. Request the City Council to meet concurrently with the HRA at a special meeting on August 1, 1994. Basis of Recommendation: 1. The contract must accurately reflect the proposed redevelopment project concept. 2. These proposed changes must also be reflected in the Planned Unit Development, Conditional Use Permit and Final Development Plan. The Planning Commission will be reviewing the changes on July 26. The City Council would review and be requested to take action on the changes at a special meeting on August 1. 3. A copy of the attached letter was mailed July 8 to all property occupants and owners of record informing them of these meetings and their purpose. Alternative Recommendation: 1. Delay action. 2. Refuse to authorize the changes. Discussion/Decision Mode: A timely response to the request would help to make it possible for construction to be initiated this year. Respectfully submitted, James Prosser Execu ve Director JDP:ds ~ ! _ I ~~ ,. ~ / ~~; Z ~ 7 p 4 fw£RSCW NE. SPUfN ~ : 4 ~`•. / ~ ~ i ~ ~f~l : g i j z ~ i .~ e~z a~ ~ ! I I ~ _ `~' ` f I I I ~ rn !- - / f I I I ~ I I I I rn ~ I , O i ~ L..___.i_____i_.._._i z P'Pl ~ ? ~~ it}~}yy~-{ 3 ~ IX/PoMf NE. 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Prosser Martin Kirsch Council Don Priebe Michael Sandahl Susan Rosenberg Russ Susag Subject: Phase I Redevelopment by CSM Corporation Dear Property Owner and/or Business Operator: The CSM Corporation is scheduled to redevelop a site area known as Phase I bounded by Emerson and Colfax Avenues, and 77th and 78th Streets. The originally approved plan included three buildings totaling approximately 114,000 square feet; 47,000 square feet for Best Buy, 42,000 square feet for SportMart and 25,000 square feet for CompUSA with 501 parking spaces. CSM has proposed a modification of Phase I by increasing the size of Best Buy and SportMart while reducing the third. The overall square footage is about the same but the foot print changes. In similar fashion, the parking numbers are similar but the location varies as ~' parking is eliminated north of the building but includes utilization of Emerson Avenue for parking. Consideration will be given to the modifications by the Planning Commission, HRA and City Council, as follows: July 18, 1994, 7:00 P.M., City Hall, HRA meeting. At the regular monthly meeting, the revised conceptual site plan will be presented for review (other items not related to Phase I redevelopment will also be part of agenda). July 26, 1994, 7:00 P.M., City Hall Planning Commission meeting. At the regular monthly meeting, a proposal to amend the Planned Unit Development/Conditional Use Permit/Final Development Plan to reflect the above changes will be presented for consideration. August 1, 1994, 7:00 P.M., City Hall Concurrent HRA and City Council meeting. At this special meeting, the HRA will be requested to approve an amended Contract For Private Development with CSM for the above identified changes to the Phase I plan. The Urban Hometown Telephone (612) 861-9700 Fax 861-9749 An .Equal Opportunity Employer - Property Owner and/or Business Operator July 8, 1994 Page 2 At this special meeting, the City Council will be requested to hold a public hearing on the above identified changes and the need to amend the Planned Unit Development/Conditional Use Permit/Final Development Plan. The City Council will also be requested to approve an agreement between the City and CSM Corporation which would permit CSM to utilize Emerson Avenue between 77th and 78th Streets for parking. Finally, the City Council has scheduled a public hearing for a matter related to the Phase I redevelopment but not part of the plan changes. A public hearing is set for July 25, 1994 at 7:00 P.M. at City Hall, as part of a regular Council meeting, to consider the vacation of portions of the old 77th Street right-of--way between Colfax and Emerson Avenues. I hope this information is helpful to you. If you have any questions please do not hesitate to call me at 861-9760. Thank you. \ Sincerely, ~'~ By J. a ace Community Development Director BJW:js