12-18-2017 Complete AgendaR E G U L AR H O U S IN G AN D R E D E V E LO P ME N T AU T H O R IT Y MEET IN G
R IC H F IE L D MU N IC IPAL C EN TER, C O U N C IL C H AMB E R S
D E C E MB E R 18, 2017
7:00 P M
C all to Order
Approval of the Minutes
A pproval of the mi nutes of the regular Housing and Redevelopment A uthority meeti ng of November 20, 2017.
AG E N D A AP P R O VAL
1.A pproval of the A genda
R E S O L U T IO N S
2.C onsideration of the approval of a resolution accepting vacated right-of-way from the C ity of Richfield.
S taff Report No. 52
P U B LIC H EAR IN G S
3.P ublic heari ng and consideration of the approval of a resolution authorizing the sale of 6421 14th Avenue, 6416
16th Avenue, and 6420 16th Avenue to E ndres C ustom Homes and the approval of three C ontracts for P rivate
D evelopment with E ndres C ustom Homes for the construction of three single family homes through the Richfield
Rediscovered P rogram.
S taff Report No. 53
H R A D IS C U S S IO N IT E MS
4.H R A D iscussion Items
E X E C U T IV E D IR EC TO R R E P O R T
5.E xecutive D i rector's Report
C L AIMS AN D PAYR O LL S
6.C laims and P ayrolls
7.A djournment
Auxiliary aids for individuals with disabilities are available upon request. R equests must be made at least 96
hours in advance to the C ity Clerk at 612-861-9738.
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
November 20, 2017
CALL TO ORDER
The meeting was called to order by Chair Supple at 7:00 p.m.
HRA Members Mary Supple, Chair; Pat Elliott; Michael Howard; and Erin Vrieze Daniels.
Staff Present: Steve Devich, Executive Director, John Stark, Community Development
Director; Melissa Poehlman, Assistant Community Development Director,
and Kate Aitchison, Housing Specialist.
OATH OF OFFICE OF RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY
COMMISSIONER, ERIN VRIEZE DANIELS.
Richfield City Clerk, Elizabeth Van Hoose, led Erin Vrieze Daniels in the Housing and
Redevelopment Authority Oath of Office.
CONSIDERATION OF THE ELECTION OF A SECREATARY FOR THE RICHFIELD HOUSING
AND REDEVELOPMENT AUTHORITY FOR THE REMAINDER OF 2017 (S.R. No. 44)
M/Howard, S/Elliott, to nominate Erin Vrieze Daniels as Secretary for the Richfield Housing
and Redevelopment Authority.
Motion carried 4-0.
APPROVAL OF THE MINUTES OF THE REGULAR HOUSING AND REDEVELOPMENT
AUTHORITY MEETING OF OCTOBER 16, 2017
M/Elliott, S/Howard, to approve the minutes of the regular Housing and Redevelopment
Authority meeting of October 16, 2017.
Motion carried 4-0.
Item #1 HRA APPROVAL OF THE AGENDA
M/Elliott, S/Vrieze Daniels, to approve the agenda.
Motion carried 4-0.
Item #2 CONSENT CALENDAR
HRA Meeting Minutes -2- October 16, 2017
Executive Director Devich presented the consent calendar:
A. Consideration of the approval of a resolution authorizing an agreement with the Greater
Metropolitan Housing Corporation for the acquisition, rehabilitation and sale of homes
under the new home program, utilizing 2017 Community Development Block Grant
funds (S.R. No. 45)
B. Consideration of the approval of a resolution authorizing the use of an Affordable
Housing Initiative Fund loan for the acquisition of 6521 Stevens Avenue by the West
Hennepin Affordable Housing Land Trust. (S.R. No. 46)
C. Consideration of the approval of a resolution accepting contributions for the 2017 Tour
of Remodeled Homes. (S.R. No. 47)
D. Consideration of the approval of a proposed adjustment of payment standard for the
Section 8 Rent Assistance program. (S.R. No. 48)
M/Elliott, S/Howard, to approve the consent calendar.
Motion carried 4-0.
Item #4
CONSIDERATION OF THE APPROVAL OF A RESOLUTIONS ADOPTING A
MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE RICHFIELD
REDEVELOPMENT PROJECT AREA, A MODIFICATION TO THE TAX
INCREMENT FINANCING PLAN FOR THE CEDAR AVENUE TAX INCREMENT
FINANCING DISTRICT, ESTABLISHING TAX INCREMENT FINANCING DISTRICT
2017-1 (THE CHAMBERLAIN) WITHIN THE RICHFIELD REDEVELOPMENT
PROJECT AREA, AND ADOPTING A TAX INCREMENT FINANCING PLAN
THEREFOR (S.R. No. 49)
Community Development Director Stark presented Staff Report 49.
James Lehnhoff, consultant with Ehlers & Associates, provided a brief overview of Tax
Increment Financing (TIF) and its role in the Chamblerlain project. He suggested the HRA take
separate actions on the items being put forward.
Community Development Director Stark asked Mr. Lehnhoff if the HRA needed to take two
separate actions on the item. Mr. Lehnhoff responded first resolution to remove parcels and extend
duration, second creating new district.
Chair Supple questioned the wording of the resolutions.
M/Howard, S/Elliott, to adopt a modification to the tax increment financing plan for the
Cedar Avenue Tax Increment Financing District within the Richfield Redevelopment Project area,
Motion carried 4-0.
M/Howard, S/Vrieze Daniels, to adopt a modification to the redevelopment plan for the
Richfield Redevelopment Project Area, establishing Tax Increment Financing District No. 2017-1
(The Chamberlain) therein, and adopting a tax increment financing plan therefor,
Motion carried 4-0.
Item #5
PUBLIC HEARING AND CONSIDERATION OF THE APPROVAL OF A
RESOLUTION APPROVING THE CONVEYANCE OF PROPERTY LOCATED
ALONG 18TH AVENUE BETWEEN 66TH AND 68TH STREETS TO
CHAMBERLAIN APARTMENTS LLC
HRA Meeting Minutes -3- October 16, 2017
Community Development Director Stark presented Staff Report 50.
Chair Supple opened the public hearing.
M/Howard, S/Vrieze Daniels, to close the public hearing.
Commissioner Elliott asked if the money paid to the city will go into escrow while issues
with MAC is resolved. Community Development Director Stark responded that the money will be
put in escrow, but that it will likely need to be repaid to the Metropolitan Airport Commission.
Motion carried 4-0.
M/Vrieze Daniels, S/Howard, approve of a resolution authorizing a conveyance of property
located along 18th avenue between 66th and 68th streets to Chamberlain Apartments LLC.
Motion carried 4-0.
Item #6
CONSIDERATION OF THE APPROVAL OF A PETITION REQUESTING THAT THE
CITY COUNCIL CONSIDER THE VACATION OF PORTIONS OF 67TH STREET
WITHIN THE BOUNDARIES OF THE NEW CHAMBERLAIN DEVELOPMENT
Community Development Director Stark presented Staff Report 51.
Commissioner Vrieze Daniels asked whether the signs have been marked as dead-ends.
Community Development Director Stark stated that the streets are now grass and no signs
are needed. In another instance the road will be redesigned and no directional postings will be
needed.
M/Elliott, S/Howard to approve the submittal of a petition requesting the vacation of portions
of 67th street adjacent to the following properties: 6644 18th Ave, 6700 18th Ave, 6701 18th Ave,
6709 18th Ave, and 6700 Cedar Avenue.
Motion carried 4-0.
Item #5
HRA DISCUSSION ITEMS
Commissioner Howard officially welcomed Commissioner Vrieze Daniels to the HRA.
Commissioner Elliott and Chair Supple also welcomed Commissioner Vrieze Daniels. Chair Supple
asked for an update on the Cedar Point II project area. Executive Director Devich stated that a
work session will be scheduled soon to discuss an update.
Item #6
EXECUTIVE DIRECTOR REPORT
Community Development Director John Stark read off the names of the sponsoring
organizations for 2017 Renovation Celebration Home Tour. The sponsors were: Steve
Schneeberger/Keller Williams Realty, Parsley Home Builders, EJ Hansen, architect, Sicora
Design/Build, and the Center for Energy and the Environment.
Community Development Director John Stark welcomed Commissioner Vrieze Daniels to
the HRA.
Item #7
CLAIMS AND PAYROLL
HRA Meeting Minutes -4- October 16, 2017
M/Howard, S/Vrieze Daniels, that the following claims and payroll be approved:
U.S. BANK 10/16/17
Section 8 Checks: 129222-129298 $144,858.52
HRA Checks: 33294-33329 $154,610.78
TOTAL $299,469.30
Motion carried 4-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:34 p.m.
Date Approved: December 18, 2017
Mary B. Supple
HRA Chair
Kate Aitchison Steve Devich
Housing Specialist Executive Director
AGENDA SECTION:RESOLUTIONS
AGENDA ITEM #2.
STAFF RE P ORT NO. 52
HOUSING AND REDE V E LOP MENT AUT HORIT Y
ME E T ING
12/18/2017
RE P O RT P RE PA RE D B Y: Melissa P oehlman, A sst. C ommunity D evelopment D irector
D E PA RTM E NT D IRE C TOR RE V IE W: J ohn S tark, C ommunity D evelopment D i rector
12/13/2017
O TH E R D E PA RTM E NT RE V IE W: N/A
C ITY M A NA G E R RE V IE W: S teven L . D evich, E xecutive D irector
12/13/2017
I T E M F O R C O UNC I L C O NS I D E RAT IO N:
Consideration of the approval of a resolution accepting vacated right-of-way from the City of Richfield.
E X E C UT IV E S UM M ARY:
As part of the platting of property for the Chamberlain Apartment Project, the City has vacated two sections
of 67th Street that are no longer necessary for road right-of-way and will become part of the development.
One of those sec tions (west of 18th Avenue) was owned in fee by the City. I n order to sell this land to the
developer alongside the rest of the land, the C ounc il has approved an ordinance c onveying this right-of-way
to the Housing and Redevelopment Authority (HRA ). The HRA must now adopt a resolution acc epting the
vacated right-of-way from the C ity.
RE C O M M E ND E D AC T IO N:
By motion: Approve a resolution authorizing the acquisition of certain pr oper ty within the City of
Richfield.
B AS IS O F RE C O M M E ND AT IO N:
A.H IS TOR IC AL C ON TEXT
See Exec utive Summary
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The approved C ontrac t for Private D evelopment calls for the land in question to be sold by the
HRA to the developer.
State statutes presc ribe a process allowing a C ity’s Housing and Redevelopment Authority to
purchase and sell properties for redevelopment purposes.
C.C R IT IC AL T IMIN G ISSU E S:
The property must be acc epted by the HRA in order to be sold to the developer.
D.F IN AN C IAL IMPAC T:
W hile there is no direct financial impact to the C ity, the HRA is proposed to sell approximately 7
acres of land to the developer at its appraised value. This vacated right-of-way represents a very
small portion of that property.
E.L E GAL C ON S ID E R AT ION :
City legal c ounsel has advised staff on this matter.
ALT E R N AT IV E R E C O MME N D AT IO N(S):
None
P R IN C IPAL PAR TIE S EXP E C T E D AT ME E T IN G:
None
AT TAC H ME N TS :
D escripti on Type
Resolution Resolution L etter
Map - Right-of-way to be accepted by HRA E xhibit
111615 Resolution Accepting City Properties.docx
HRA RESOLUTION NO. __________
RESOLUTION AUTHORIZING THE ACQUISITION OF CERTAIN PROPERTY WITHIN
THE CITY OF RICHFIELD
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (“the HRA”) desires to obtain certain real property as described in the
attached Exhibit A (“the Property”) currently owned by the City of Richfield, pursuant to and
in furtherance of its redevelopment efforts;
WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to
acquire real property within its area of operation;
WHEREAS, the HRA has determined that acquisition of said property is in
furtherance of its redevelopment purposes; and
NOW THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority in and for the City of Richfield:
1. The conveyance of the Property by the City to the HRA is hereby approved.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota on this 18th day of December, 2017.
__________________
Mary B. Supple, Chair
ATTEST:
_______________________
Erin Vrieze Daniels, Secretary
EXHIBIT A
City of Richfield property to be conveyed to Richfield HRA
That part of 67th Street East as dedicated on the plat of Wexler’s Addition, according to
the recorded plat thereof, Hennepin County, Minnesota, which lies westerly of a line drawn
from the southeast corner of Lot 8, Block 2 to the northeast corner of Lot 1, Block 3 and
lies easterly of a line drawn from the southwest corner of Lot 8, Block 2 to the northwest
corner of Lot 1, Block 3, all in said Wexler’s Addition.
Phone (952) 937-5150 7699 Anagram Drive
Fax (952) 937-5822 Eden Prairie, MN 55344
Toll Free (888) 937-5150
AGENDA SECTION:PUBLIC HEARINGS
AGENDA ITEM #3.
STAFF RE P ORT NO. 53
HOUSING AND REDE V E LOP MENT AUT HORIT Y
ME E T ING
12/18/2017
RE P O RT P RE PA RE D B Y: K ate A itchison/C eleste McD ermott, Housi ng S pecialists
D E PA RTM E NT D IRE C TOR RE V IE W: J ohn S tark, C ommunity D evelopment D i rector
12/12/2017
O TH E R D E PA RTM E NT RE V IE W: N/A
C ITY M A NA G E R RE V IE W: S teven L . D evich, E xecutive D irector
12/13/2017
I T E M F O R C O UNC I L C O NS I D E RAT IO N:
Public hearing and consideration of the appr oval of a resolution author izing the sale of 6421 14th
Avenue, 6416 16th Avenue, and 6420 16th Avenue to Endres Custom Homes and the approval of three
Contracts for P rivate D evelopment with E ndres Custom H omes for the construction of three single
family homes through the Richfield Rediscovered Program.
E X E C UT IV E S UM M ARY:
Endres Custom Homes (the Builder) is applying to purchase three vac ant lots from the Housing and
Redevelopment A uthority (HRA) for the construc tion of three single family homes. The new homes would be
the same base model with vary ing exterior finishes and roof-lines. The model is a two-story home with four
bedrooms, three baths, a finished basement and a two-car attac hed garage. The new homes will be 2,135
finished square feet with a minimum end value of $309,900.
W hile the Richfield Redisc overed Program has been very suc cessful in recent years, the lots c urrently
available for sale by the HRA have remained undeveloped. I t is likely that proximity to the airport and
additional sound attenuation requirements have deterred buyers from the properties.
The Builder has worked extensively with the HRA to ensure complianc e with sound attenuation standards,
design guidelines and building requirements to find a proposal that is feasible for both the Ric hfield
Rediscovered P rogram and the Builder. I n order to make new homes viable on these lots, staff is
rec ommending a disc ounted lot sale price for the new homes, based on a variety of fac tors:
6421 14th Avenue was listed at $45,000, the proposed lot sale price is: $41,625
6416 16th Avenue was listed at $45,000, the proposed lot sale price is: $37,725
6420 16th Avenue was listed at $40,000, the proposed lot sale price is: $35,240
The Builder listed the proposed homes on the Multiple Listing Service (MLS) on December 7, 2017. As of
December 11th, there have been 28 inquiries into the proposed homes, and the future home at 6421 14th
Avenue has been pre-sold. The Builder anticipates the homes at 6416 and 6420 16th Avenue will be sold
prior to closing, although the contract does not require it.
RE C O M M E ND E D AC T IO N:
Conduct and close the public hearing for the sale of 6421 14th Avenue, 6416 16th Avenue, and 6420
16th Avenue to Endres C ustom Homes and by motion:
1. Approve a r esolution authoriz ing the sale of 6421 14th Avenue, 6416 16th Avenue and 6420 16th
Avenue to Endres C ustom Homes;
2. Author ize execution of a Contract for Pr ivate Development between the Housing and
Redevelopment Authority and Endres C ustom Homes for the redevelopment of 6421 14th
Avenue;
3. Author ize execution of a Contract for Pr ivate Development between the Housing and
Redevelopment Authority and Endres C ustom Homes for the redevelopment of 6416 16th
Avenue; and
4. Author ize execution of a Contract for Pr ivate Development between the Housing and
Redevelopment Authority and Endres C ustom Homes for the redevelopment of 6420 16th
Avenue.
B AS IS O F RE C O M M E ND AT IO N:
A.H IS TOR IC AL C ON TEXT
6421 14th Avenue
A blighted home was purchased in February 2016 for $78,700.
The house was abated and demolished mid-2016.
The vac ant lot has been listed for $45,000.
I n early 2016, a builder approac hed the HRA about developing the lot, but an application
was never submitted.
6416 & 6420 16th Avenue
A small home on a double lot was purc hased by the HRA from an estate in March 2013 for
$93,800.
The house was abated and demolished in mid-2013.
The 99-foot lot was subdivided into two 49.5 foot lots to be developed with two single-family
homes.
The vac ant lots were originally listed for sale for $55,000 and $50,000 (the latter being less
due to the lac k of sewer/water acc ess).
I n spring 2016, the lot prices were reduced to $45,000 and $40,000, based on a re-
appraisal. I n 2016, a builder attempted to develop the lots and listed a spec ulative home
plan on the MLS.
No potential buy ers were found.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The proposed projects meets the polic y objectives of the Richfield Rediscovered Program:
Removes substandard, func tionally obsolete housing and eliminates its blighting influence;
P rovides new, higher valued housing; and
A lleviates shortage of housing c hoice for families.
The projec ts also meet the Housing Design and Site Development C riteria, as defined in the
Richfield Redisc overed Guidelines.
C.C R IT IC AL T IMIN G ISSU E S:
The C ontrac t for Private Development (Contract) requires the Builder to close on the properties
by March 1, 2018 and to c omplete construction by September 1, 2018.
All Ric hfield Rediscovered c ontracts inc lude a provision authorizing staff to grant an extension to
these deadlines for a period up to six months.
D.F IN AN C IAL IMPAC T:
Under the terms of the Contracts for all three properties, the contracted minimum market value of the
new homes will be $309,900. Under the terms of the C ontrac t, the Builder will also be required to submit
a $10,000 cash esc row for each property.
6421 14th Avenue
T he HRA acquired the 50-foot wide property and structure in 2016 for approximately
$78,800.
T he appraised value of the vacant lot is $45,000.
Under the terms of the Contract, $41,625 will be due at c losing.
Disc ount to lot sale price applied for upgraded window costs.
6416 16th Avenue
The HRA acquired a 99-foot wide double lot and structure in 2016 for approximately $93,800. The
lot was subdivided into 6416 16th Avenue and 6420 16th Avenue.
The appraised value of the 6416 16th Avenue lot is $45,000.
Under the terms of the Contract, $37,725 will be due at c losing.
Disc ount to lot sale price applied for upgraded window costs and new water/sewer lines.
6420 16th Avenue
The HRA acquired a 99-foot wide double lot and structure in 2016 for approximately $93,800. The
lot was subdivided into 6416 16th Avenue and 6420 16th Avenue.
The appraised value of the 6420 16th Avenue is $40,000 (due to lack of sewer and water access).
Under the terms of the Contract, the $35,240 will be due at closing.
Disc ount to lot sale price applied for upgraded window costs, new water/sewer lines,
Metropolitan Council Sewer Availability Charge (S A C) fee for new household unit being
added to the sy stem.
E.L E GAL C ON S ID E R AT ION :
Notic e of the public hearing was published in the Sun Current on December 7, 2017.
Mailed notification is not required on this item; however, a courtesy notic e was mailed to residents
within 350 feet of the property.
The HRA Attorney prepared the Contract for Private Development.
ALT E R N AT IV E R E C O MME N D AT IO N(S):
Do not approve the sale of the properties and the Contract(s) for Private Development.
P R IN C IPAL PAR TIE S EXP E C T E D AT ME E T IN G:
Dustin Endres, Endres C ustom Homes, I nc.
AT TAC H ME N TS :
D escripti on Type
Resolution A uthorizing S ale Resolution L etter
L ot P hotos B ackup Materi al
6421 14th House P lans B ackup Materi al
6416 16th House P lans B ackup Materi al
6420 16th House P lans B ackup Materi al
6421 14th, 6416 16th, 6420 16th L andscaping P lan B ackup Materi al
C ontract for P rivate D evelopment 6421 14th Avenue C ontract/A greement
C ontract for P rivate D evelopment 6416 16th Avenue C ontract/A greement
C ontract for P rivate D evelopment 6420 16th Avenue C ontract/A greement
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT
6421 14TH AVENUE, 6416 16TH AVENUE, AND 6420 16TH AVENUE TO ENDRES
CUSTOM HOMES
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (HRA) desires to develop certain real property pursuant to and in
furtherance of the Richfield Rediscovered Program adopted by the HRA, said real
property being described as:
Address: 6421 14th Avenue South
Legal: Lot 19, Block 3, Nokomis Gardens Rearrangement of Block One (1), Two
(2), Three (3), Four (4), and Five (5), Girard Parkview, Hennepin County,
Minnesota
Address: 6416 16th Avenue South
Legal: Lot 5, Block 11, Nokomis Gardens Rearrangement of Blocks 7-11 and 12-
Girard Parkview, Hennepin County, Minnesota
Address: 6420 16th Avenue South
Legal: Lot 6, Block 11, Nokomis Gardens Rearrangement of Blocks 7-11 and 12-
Girard Parkview, Hennepin County, Minnesota
WHEREAS, the HRA is authorized to sell real property within its area of
operation after a public hearing; and
WHEREAS, the purchaser of the described property has been identified as
Endres Custom Homes, and
WHEREAS, a Contract for Private Development has been prepared, and the sale
price of 6421 14th Avenue is $41,625 with performance security in the amount of
$10,000, the sale price of 6416 16th Avenue is $37,725 with performance security in the
amount of $10,000, and the sale price of 6420 16th Avenue is $35,240 with
performance security in the amount of $10,000; and
WHEREAS, a public hearing has been held after proper public notice.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota:
1. A public hearing has been held and 6421 14th Avenue is authorized to be
sold for $41,625 to Endres Custom Homes; and
2. A public hearing has been held and 6416 16th Avenue is authorized to be
sold for $37,725 to Endres Custom Homes; and
3. A public hearing has been held and 6420 16th Avenue is authorized to be
sold for $35,240 to Endres Custom Homes; and
4. The Chairperson and Executive Director are authorized to execute a Contract
for Private Development and other agreements as required to effectuate the
sale to the Builder.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 18th day of December, 2017.
Mary B. Supple, Chair
ATTEST:
Erin Vrieze Daniels, Secretary
6421 14th Avenue
6416 & 6420 16th Avenue (purchased as double-lot, being sold as
two 49.5’ lots)
401253v8 CBR RC125-65
CONTRACT FOR PRIVATE DEVELOPMENT
Between
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD
and
Endres Custom Homes, Inc.
for property located at
6421 14th Avenue South
This Instrument Drafted by:
The Housing and Redevelopment Authority
in and for the City of Richfield
6700 Portland Avenue South
Richfield, Minnesota 55423
Telephone: (612) 861-9760
401253v8 CBR RC125-65
1
CONTRACT FOR PRIVATE DEVELOPMENT
THIS AGREEMENT, made and entered into as of this ______ day of ________, 20___,
by and between 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, having its principal
office at 6700 Portland Avenue, Richfield, Minnesota (HRA) and Endres Custom Homes, Inc., a
Minnesota Corporation (Builder).
WITNESSETH:
WHEREAS, the City of Richfield (City) and the HRA have previously created and
established a Redevelopment Project (Project) pursuant to the authority granted in Minnesota
Statutes, Sections 469.001 through 469.047 (collectively, the Act); and
WHEREAS, pursuant to the Act, the City and the HRA have previously adopted a
redevelopment plan for the Project (Redevelopment Plan); and
WHEREAS, in order to achieve the objectives of the Redevelopment Plan and
particularly to make specified land in the Project available for development by private enterprise
for and in accordance with the Redevelopment Plan, the HRA has determined to provide
substantial aid and assistance to finance development costs in the Project; and
WHEREAS, the Builder has proposed a development as hereinafter defined within the
Project which the HRA has determined will promote and carry out the objectives for which the
Project has been undertaken, will assist in carrying out the obligations of the Redevelopment
Plan, will be in the vital best interests of the City and the health, safety and welfare of its
residents and is in accord with the public purposes and provisions of the applicable state and
local laws and requirements under which development in the Project has been undertaken and is
being assisted.
NOW, THEREFORE, in consideration of the mutual covenants and obligation of the
HRA and the Builder, each party does hereby represent, covenant and agree with the other as
follows:
ARTICLE I.
DEFINITIONS, EXHIBITS, RULES OF INTERPRETATION
Section 1.1. Definitions. In this Agreement, the following terms have the meaning
given below unless the context clearly requires otherwise:
Building Plans. Detailed plans for the Improvements to be constructed on the Property,
as required by the local building official for issuance of a building permit.
401253v8 CBR RC125-65
2
Construction Plans. The construction plans approved by the HRA pursuant to Section
4.1 of this Agreement. The Construction Plans include a schedule for construction of the
Improvements, preliminary plans and schematics of the Improvements to be constructed, and a
landscaping plan.
Development. The Property and the Improvements to be constructed thereon according
to the Construction Plans approved by the HRA.
Event of Default. Event of Default has the meaning given such term in Section 8.1.
Guidelines. The Richfield Rediscovered Program Guidelines Lot Sale Program, revised
March 20, 2017, and attached as Exhibit B to this Agreement.
Homeowner. The individuals purchasing the Property from Builder and who will be
living in the home following purchase.
Improvements. Each and all of the structures and site improvements constructed on the
Property by the Builder, as specified in the Construction Plans to be approved by the HRA.
Minimum Market Value. $309,000, which is the minimum market value for the land
and Improvements as confirmed by the Hennepin County Assessor.
Mortgage. A mortgage obtained by the Builder from a third party lender in accordance
with Section 7.2 of this Agreement.
Property. The real property legally described as:
Lot 19, Block 3, Nokomis Gardens Rearrangement of Block One (1), Two (2), Three (3),
Four (4), and Five (5), Girard Parkview, Hennepin County, Minnesota.
Located on land having a street address of:
6421 14th Avenue South
Unavoidable Delays. Delays which are the direct result of strikes, labor troubles, fire or
other casualty to the Improvements, litigation commenced by third parties which results in delays
or acts of any federal, state or local government, except those contemplated by this Agreement,
which are beyond the control of the Builder.
Section 1.2. Exhibits. The following Exhibits are attached to and by reference made a
part of this Agreement:
A. Form of Certificate of Completion
B. Program Guidelines – Lot Sale Program
401253v8 CBR RC125-65
3
C. Form of Quit Claim Deed
D. Well Disclosure
Section 1.3. Rules of Interpretation.
(a) This Agreement shall be interpreted in accordance with and governed by the laws
of the State of Minnesota.
(b) The words “herein” and “hereof” and words of similar import, without reference
to any particular section or subdivision refer to this Agreement as a whole rather than any
particular section or subdivision hereof.
(c) References herein to any particular section or subdivision hereof are to the section
or subdivision of this Agreement as originally executed.
(d) Any titles of the several parts, articles and sections of this Agreement are inserted
for convenience and reference only and shall be disregarded in construing or interpreting any of
its provisions.
ARTICLE II.
REPRESENTATIONS AND UNDERTAKINGS
Section 2.1. By the Builder. The Builder makes the following representations and
undertakings:
(a) The Builder has the legal authority and power to enter into this Agreement and has
duly authorized the execution, delivery and performance of this Agreement;
(b) The Builder has the necessary equity capital or has obtained commitments for
financing necessary for construction of the Improvements;
(c) The Builder will construct the Improvements in accordance with the terms of this
Agreement and all local, state and federal laws and regulations;
(d) The Builder will obtain, in a timely manner, all required permits, licenses and
approvals, and will meet, in a timely manner, the requirements of all local, state and federal laws
and regulations which must be obtained or met before the Improvements may be constructed;
(e) The plans for the Improvements have been prepared by a qualified draftsperson or
architect; and
(f) The Builder has read and understands the Guidelines and agrees to be bound by
them.
401253v8 CBR RC125-65
4
Section 2.2. By the HRA. The HRA makes the following representations as the basis
for the undertaking on its part herein contained:
(a) The HRA is authorized by law to enter into this Agreement and to carry out its
obligations hereunder; and
(b) The HRA will, in a timely manner, subject to all notification requirements, review
and act upon all submittals and applications of the Builder and will cooperate with the efforts of
the Builder to secure the granting of any permit, license, or other approval required to allow the
construction of the Improvements.
ARTICLE III.
ACQUISITION OF PROPERTY; CONVEYANCE TO BUILDER
Section 3.1. Purchase of Property by Builder. The HRA agrees to sell the Property to
Builder and the Builder agrees to purchase the Property from the HRA in an “as-is” condition.
The sale of the Property is contingent upon the Builder providing the HRA with evidence
satisfactory to the HRA that Builder has entered into a binding legal commitment, in the form of
a Purchase Agreement for the resale of the Property to a Homeowner following completion of the
Improvements. The HRA agrees to convey the Property to the Builder by Quit Claim Deed in the
general form of Exhibit C. The HRA’s deed to the Builder will contain the right of reverter
required in Section 8.3. The purchase price for the Property, payable at Closing, will be $41,625
(“Purchase Price”).
Section 3.2. Title and Examination. As soon as reasonably possible after execution of
this Contract for Private Development by both parties,
(a) HRA shall surrender any abstract of title and a copy of any owner’s title insurance
policy for the property, if in HRA’s possession or control, to Builder or to Builder’s designated
title service provider; and
(b) Builder shall obtain the title evidence determined necessary or desirable by
Builder or Builder’s lender, including but not limited to title searches, title examinations,
abstracting, a title insurance commitment or an attorney’s title opinion, at Builder’s selection and
cost, and provide a copy to the HRA.
The Builder shall have 20 days from the date it receives such title evidence to raise any
objections to title it may have. Objections not made within such time will be deemed waived.
The HRA shall have 90 days from the date of such objection to effect a cure; provided, however,
that the HRA shall have no obligation to cure any objections, and may inform Builder of such.
The Builder may then elect to close notwithstanding the uncured objections or declare this
Agreement null and void, and the parties will thereby be released from any further obligation
hereunder.
401253v8 CBR RC125-65
5
Section 3.3. Taxes and Special Assessments. Real estate taxes and installments of
special assessments will be prorated between the HRA and Builder as of the date of closing.
Section 3.4. Soil Conditions and Hazardous Wastes. The Builder acknowledges that
the HRA makes no representations or warranties as to the conditions of the soils on the Property,
its fitness for the construction of improvements or any other purpose for which the Builder may
use the Property, or regarding the presence of hazardous wastes on the Property. The HRA will
allow reasonable access to the Property for the Builder to conduct such tests regarding soils
conditions and hazardous wastes as the Buyer may desire. Permission to enter the Property to
conduct such tests must be given in writing under reasonable terms and conditions established by
the HRA.
Section 3.5. Site Clearance. The HRA will be responsible for clearance of all buildings
as required to prepare the Property for development. All other site preparation is the
responsibility of Builder. Builder will comply with all of the provisions of the Guidelines
relating to tree protection, preservation and replacement.
Section 3.6. Other Preconditions to Closing. Closing may not take place until the
HRA is satisfied that the Project is in all respects in full compliance with the provisions of the
Guidelines contained in Exhibit B. It is anticipated that the Builder will involve the Homeowner
in the various activities required under the Guidelines so that the Homeowner will have an
opportunity to contribute suggestions concerning development of the Property.
Section 3.7. Closing. Closing must take place March 1, 2018, (“Closing Date”) or such
other date as may be agreed to by the Builder and HRA in writing. At Closing, the Builder will
provide the HRA with a a cash deposit for the escrow account established pursuant to Section
5.1, in addition to the Purchase Price.
Section 3.8. Closing Costs. The Builder will pay: (a) the closing fees charged by its title
insurance company or other closing agent, if any, utilized to close the transaction for
Builder; (b) title services chosen by Builder pursuant to Section 3.2 above, including the premium for
title insurance policy, if any, and (c) the recording fees for the Contract for Private Development and
the deed transferring title to the Builder. HRA will pay all other fees normally paid by sellers,
including (a) any transfer taxes, and (b) fees and charges related to the filing of any instrument
required to make title marketable. Each party shall pay its own attorney fees.
Section 3.9. Sewer and Water. HRA warrants that city water is available at the lot line
and city sewer is available at the curb.
Section 3.10. ISTS Disclosure. HRA is not aware of any individual sewage treatment
system on the property. Buyer is responsible for all costs of removing any individual sewage
treatment system that may be discovered on the Property.
Section 3.11. Well Disclosure. HRA’s knowledge of wells on the Property is disclosed
in Exhibit D.
401253v8 CBR RC125-65
6
ARTICLE IV.
CONSTRUCTION OF IMPROVEMENTS
Section 4.1. Construction of Improvements. The Builder shall construct the
Improvements on the Property in accordance with the Guidelines and the Construction Plans,
shall cause the Improvements to meet or exceed the Minimum Market Value specified in Section
1.1, and shall maintain, preserve and keep the Improvements in good repair and condition. The
Builder shall provide his or her proposed construction plans to the HRA for review; if the
proposed construction plans are in conformity with this Agreement and the Guidelines, the HRA
will approve the Construction Plans following review and comment by the Homeowner.
Section 4.2. Construction Plans. No building permit will be issued by the City unless
the Building Plans are in conformity with the Guidelines, the Construction Plans, the Builder’s
Minimum Market Value, other requirements contained in this Agreement, and all local, state and
federal regulations. The Builder shall provide the HRA with a set of Building Plans to be used in
connection with any application for a building permit. The HRA shall, within 25 days of receipt
of the Building Plans review the same to determine whether the foregoing requirements have
been met. If the HRA determines such Building Plans to be deficient, it shall notify the Builder
in writing stating the deficiencies and the steps necessary for correction. Issuance of the building
permit by the City shall be a conclusive determination that the Building Plans have been
approved and shall satisfy the provisions of this Section 4.2.
Section 4.3. Schedule of Construction. Subject to Unavoidable Delays, construction of
the Improvements shall be completed prior to September 1, 2018 (“Construction Completion
Date”). All construction shall be in conformity with the approved Construction Plans and the
Guidelines. Periodically during construction the Builder shall make reports in such detail as may
reasonably be requested by the HRA concerning the actual progress of construction. If at any
time prior to completion of construction the HRA has cause to believe that the Builder will be
unable to complete construction of the Improvements in the time permitted by this Section 4.3, it
may notify the Builder and demand assurances from the Builder regarding the Builder’s
construction schedule. If such assurances are not forthcoming or are deemed by the HRA at its
sole discretion to be inadequate, the HRA may declare an Event of Default and may avail itself of
any of the remedies specified in Section 8.2 of this Agreement.
Section 4.4. Certificate of Completion. After notification by the Builder of completion
of construction of the Improvements, the HRA shall inspect the construction to determine
whether the Improvements have been completed in accordance with the Construction Plans and
the terms of this Agreement, including the date of the completion thereof. In the event that the
HRA is satisfied with the construction, and upon closing on the sale of the Property to the
Homeowner, the HRA shall furnish the Builder with a Certificate of Completion in the form
attached hereto as Exhibit A. Such certification by the HRA shall be a conclusive determination
of satisfaction and termination of the agreements and covenants in this Agreement. Issuance of
the Certificate of Completion shall also serve as a satisfaction of any obligation of Builder
401253v8 CBR RC125-65
7
secured by the escrow account established under Section 5.1, and the cash in the escrow account
will be released to the Builder. At the time a Certificate of Completion is issued, the HRA will
also provide Builder with a $5,000 cash rebate if Builder has obtained Green Community
Concepts certification through LEED for Homes, Minnesota GreenStar, Minnesota Green
Communities or Minnesota Green Path.
If the HRA shall refuse or fail to provide certification in accordance with the provisions
of this Section 4.4, the HRA shall within 15 days of such notification provide the Builder with a
written statement, indicating in adequate detail in what respects the Builder has failed to
complete the Improvements in accordance with the provisions of this Agreement necessary, in
the opinion of the HRA, for the Builder to take or perform in order to obtain such certification.
Section 4.5. Failure to Construct. In the event that construction of the Improvements is
not completed as provided in Section 4.3 of this Agreement, an Event of Default shall be deemed
to have occurred, and the HRA may proceed with its remedies under Section 8.2.
ARTICLE V.
REDEVELOPMENT ASSISTANCE
Section 5.1. Establishment of Cash Escrow. Builder acknowledges that although it is
purchasing the Property at its fair market value as raw land, the HRA has incurred significant
costs in acquiring and preparing the Property for development by Builder. At Closing, Builder
will deliver to the HRA $10,000 to be placed in a non-interest bearing escrow account pursuant
to the Escrow Agreement, dated as of the date hereof, between Builder and HRA. The obligation
to pay the $10,000 to the HRA will be forgiven, and the cash in the escrow account will be
returned to Builder if: (i) the Builder receives a Certificate of Completion; and (ii) the Builder is
not otherwise in default of any of its obligations hereunder. If such have not occurred, an Event
of Default shall be deemed to have occurred and the HRA may exercise its remedies under
Section 8.2. In certain circumstances, after construction is complete, the Builder or Buyer may be
required to deposit another cash escrow with the planning department of the City for incomplete
improvements. In these cases, following the HRA’s release of the cash escrow, the cash escrow
will be transferred to the City’s planning department for such purpose. The terms of the escrow
will be set forth in an Escrow Agreement between the HRA and the Builder or Buyer.
ARTICLE VI.
FINANCING
Section 6.1. Financing. HRA acknowledges that Builder has submitted evidence of
financing for the Improvements in compliance with the provisions of Section 2.1(b) of this
Agreement. Builder must notify HRA immediately of any changes to or withdrawal of the
approved financing, HRA shall have 10 days to approve or disapprove changes in financing. If
the HRA rejects a change in the approved financing or if the approved financing is withdrawn,
the Builder shall have 30 days or such additional period of time as the Builder may reasonably
401253v8 CBR RC125-65
8
require from the date of the HRA’s notification to submit evidence of financing satisfactory to
the HRA. If the Builder fails to submit such evidence or fails to use due diligence in pursuing
financing, the HRA may terminate this Agreement and both parties shall be released from any
further obligation or liability hereunder. Closing shall not take place until Builder has provided
HRA with acceptable evidence of financing for construction of the Improvements.
Section 6.2. Copy of Notice of Default to Lender. Whenever the HRA shall deliver
any notice or demand to the Builder with respect to any Event of Default by the Builder in its
obligations or covenants under this Agreement, the HRA shall at the same time forward a copy of
such notice or demand to each holder of any Mortgage authorized by the Agreement at the last
address of such holder shown in the records of the HRA.
Section 6.3. Subordination. In order to facilitate obtaining financing for the
construction of the Improvements by the Builder, the HRA may, in its sole and exclusive
discretion, agree to modify this Agreement in the manner and to the extent the HRA deems
reasonable, upon request by the financial institution and the Builder.
ARTICLE VII.
PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER
Section 7.1. Representation as to Redevelopment. The Builder represents and agrees
that its undertakings pursuant to the Agreement, are for the purpose of development of the
Property and not for speculation in land holding. The Builder further recognizes that, in view of
the importance of the Development to the general welfare of Richfield and the substantial
financing and other public aids that have been made available by the HRA for the purpose of
making the Development possible, the qualification and identity of the Builder are of particular
concern to the HRA. The Builder further recognizes that it is because of such qualifications and
identity that the HRA is entering into this Agreement, and, in so doing, is further willing to rely
on the representations and undertakings of the Builder for the faithful performance of all
undertakings and covenants agreed by the Builder to be performed.
Section 7.2. Prohibition Against Transfer of Property and Assignment of
Agreement. For the reasons set out in Section 7.1 of this Agreement, the Builder represents and
agrees as follows:
(a) Except as specifically allowed by this section, Builder has not made or created,
and, prior to the issuance of the Certificate of Completion, Builder will not make or create, or
suffer to be made or created, any total or partial sale, assignment, conveyance, or any trust in
respect to this Agreement or the Property or any part thereof or any interest therein, or any
contract or agreement to do any of the same, without the prior written approval of the HRA.
(b) This provision shall not be deemed as preventing the Builder from entering into a
Purchase Agreement for the sale of the Property to a Homeowner.
401253v8 CBR RC125-65
9
(c) This provision does not prohibit conveyances that are only by way of security for,
and only for the purpose of obtaining financing necessary to enable the Builder or any successor
in interest to the Property, or any part thereof, to perform its obligations with respect to the
Development under this Agreement, and any other purpose authorized by this Agreement. Any
Mortgage obtained by the Builder must be disclosed to the HRA, and must be subordinate to this
Agreement. The Builder must provide the HRA with an address for the holder of the Mortgage
for purposes of providing notices as may be required by this Agreement.
ARTICLE VIII.
EVENTS OF DEFAULT
Section 8.1. Events of Default Defined. The following shall be deemed Events of
Default under this Agreement and the term shall mean, whenever it is used in this Agreement,
unless the context otherwise provides, any one or more of the following events:
(a) Failure by the Builder to pay when due the payments required to be paid or
secured under any provision of this Agreement;
(b) Failure by the Builder to observe and substantially perform any covenant,
condition, obligation or agreement on its part to be observed or performed hereunder, including
the time for such performance;
(c) If the Builder shall admit in writing its inability to pay its debts generally as they
become due, or shall file a petition in bankruptcy, or shall make an assignment for the benefit of
its creditors, or shall consent to the appointment of a receiver of itself or of the whole or any
substantial part of the Property;
(d) If the Builder, on a petition in bankruptcy filed against it, be adjudicated as
bankrupt, or a court of competent jurisdiction shall enter an order or decree appointing, without
the consent of the Builder, a receiver of the Builder or of the whole or substantially all of its
property, or approve a petition filed against the Builder seeking reorganization or arrangement of
the Builder under the federal bankruptcy laws, and such adjudication, order or decree shall not be
vacated or set aside or stayed within 60 days from the date of entry thereof; or
(e) If the Development is in default under any Mortgage and has not entered into a
work-out agreement with the holder of the Mortgage.
Section 8.2. Remedies on Default. Whenever any Event of Default occurs, the HRA
may, in addition to any other remedies or rights given the HRA under this Agreement, take any
one or more of the following actions following written notice by the HRA to the Builder as
provided in Section 9.3 of this Agreement:
401253v8 CBR RC125-65
10
(a) Suspend its performance under this Agreement until it receives assurances from the
Builder, deemed reasonably adequate by the HRA, that the Builder will cure its default and
continue its performance under this Agreement;
(b) Cancel or rescind this Agreement;
(c) Exercise its right under Section 8.3;
(d) Withdraw all funds in the escrow account established in Section 5.1;
(e) Withhold the Certificate of Completion; or
(f) Take whatever action at law or in equity may appear necessary or desirable to the
HRA to enforce performance and observance of any obligation, agreement, or covenant of the
Builder under this Agreement; provided, however, that any exercise by the HRA of its rights or
remedies hereunder shall always be subject to and limited by, and shall not defeat, render invalid
or limit in any way (a) the lien of any Mortgage authorized by this Agreement and (b) any rights
or interest provided in this Agreement for the protection of the holders of a Mortgage; and
provided further that should any holder of a Mortgage succeed by foreclosure of the Mortgage or
deed in lieu thereof to the Builder’s interest in the Property, it shall, notwithstanding the
foregoing, be obligated to perform the obligations of the Builder under this Agreement to the
extent that the same have not therefore been performed by the Builder.
Section 8.3. Revesting Interest in HRA Upon Happening of Event of Default
Subsequent to Conveyance of Property to Builder. In the event that subsequent to the closing
or the sale of the Property to the Builder and prior to the issuance of the Certificate of
Completion:
(a) The Builder fails to begin construction of the Improvements in conformity with
this Agreement, and such failure is not due to Unavoidable Delays;
(b) The Builder, after commencement of the construction of the Improvements,
defaults in or violates obligations with respect to the construction of the Improvements, including
the nature and the date for the completion thereof, or abandons or substantially suspends
construction work, and such act or actions is not due to Unavoidable Delays;
(c) The Builder or successor in interest fails to pay real estate taxes or assessments on
the Property or any part thereof when due, or places thereon any encumbrance or lien
unauthorized by this Agreement, or suffers any levy or attachment to be made, or any supplier’s
or mechanic’s lien, or any other unauthorized encumbrance or lien to attach;
(d) There is, in violation of Article VII of this Agreement, any transfer of the Property
or any part thereof; or
(e) The Builder fails to comply with any of its covenants under this Agreement,
401253v8 CBR RC125-65
11
then the HRA shall have the right upon 30 days’ written notice to Builder and the Builder’s
failure to cure within such 30 days period, to re-enter and take possession of the Property and to
terminate and revest in the HRA the interest of the Builder in the Property; provided, however,
that such revestiture of title shall be subject to the lien of any prior encumbrance permitted under
this Agreement, or any right of a Homeowner pursuant to a valid Purchase Agreement authorized
by this Agreement.
Section 8.4. No Remedy Exclusive. No remedy herein conferred upon or reserved to
the HRA is intended to be exclusive of any other available remedy or remedies, but each and
every such remedy shall be cumulative and shall be in addition to every other remedy given
under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or
omission to exercise any right or power accruing upon any default shall impair any such right or
power or shall be construed to be a waiver thereof, but any such right and power may be
exercised from time to time and as often as may be deemed expedient. In order to entitle the
HRA or the Builder to exercise any remedy reserved to it, it shall not be necessary to give notice,
other than such notice as may be required in this Article VIII.
Section 8.5. No Additional Waiver Implied by One Waiver. In the event of the
occurrence of any Event of Default by either party, which Event of Default is thereafter waived
by the other party, such waiver shall be limited to the particular Event of Default so waived and
shall not be deemed to waive any other concurrent, previous or subsequent Event of Default.
ARTICLE IX.
ADDITIONAL PROVISIONS
Section 9.1. Conflict of Interests; Representatives Not Individually Liable. No HRA
officer who is authorized to take part in any manner in making this Agreement in his or her
official capacity shall voluntarily have a personal financial interest in this Agreement or benefit
financially there from. No member, official, or employee of the HRA shall be personally liable
to the Builder, or any successor in interest, for any Event of Default by the HRA or for any
amount which may become due to the Builder or successor or on any obligations under the terms
of this Agreement.
Section 9.2. Non-Discrimination. The provisions of Minnesota Statutes Section
181.59, which relate to civil rights and non-discrimination, and any affirmative action program of
the City shall be considered a part of this Agreement and binding on the Builder as though fully
set forth herein.
Section 9.3. Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand or other communication under this Agreement by either party to the
other shall be sufficiently given or delivered if it is sent by mail, postage prepared, return receipt
requested or delivered personally:
401253v8 CBR RC125-65
12
(a) As to the HRA:
Richfield HRA
Executive Director
6700 Portland Avenue South
Richfield, MN 55423
(b) As to the Builder:
Dustin Endres
Endres Custom Homes, Inc.
15561 Dunberry Way
Apple Valley, MN 55124
or at such other address with respect to either such party as that party may, from time to time,
designate in writing and forward to the other as provided in this Section 9.3.
Section 9.4. Counterparts. This Agreement may be simultaneously executed in any
number of counterparts, all of which shall constitute one and the same instrument.
Section 9.5. Extensions. Any extension to the Closing Date and/or extension to
Construction Completion Date that exceeds 6 months from the date agreed to in Section 3.7 and 4.3,
respectively, must be approved by the HRA Board. HRA staff is authorized to extend the Closing
Date to a date less than 6 months from the Closing Date agreed to in Section 3.7 and extend the
Construction Completion Date to a date less than 6 months from the Construction Completion Date
agreed to in Section 4.3.
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed
as of the day and year first above written.
[signature pages follow]
401253v8 CBR RC125-65
13
Signature Page for HRA
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
RICHFIELD, MINNESOTA
By _______________________________________
Its Chairperson
By _______________________________________
Its Executive Director
__________________________________________
STATE OF MINNESOTA )
) SS
COUNTY OF ______________ )
The foregoing instrument was acknowledged before me this __________ day of
____________________, 20_____, by , the Chairperson of the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota, a public body corporate
and politic under the laws of Minnesota, on behalf of the authority.
________________________________________________
Notary Public
STATE OF MINNESOTA )
) SS
COUNTY OF ______________ )
The foregoing instrument was acknowledged before me this __________ day of
____________________, 20_____, by , the Executive Director of the Housing
and Redevelopment Authority in and for the City of Richfield, Minnesota, a public body
corporate and politic under the laws of Minnesota, on behalf of the authority.
________________________________________________
Notary Public
401253v8 CBR RC125-65
14
Signature Page for Builder
Builder
By______________________________________
Its______________________________________
STATE OF MINNESOTA )
) SS
COUNTY OF ______________ )
The foregoing instrument was acknowledged before me this __________ day of
____________________, 20_____, by __________________________________________, the
______________________ of _______________________________________________, a
_________________________ under the laws of _____________________, on behalf of the
_____________________.
________________________________________________
Notary Public
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401253v8 CBR RC125-65
EXHIBIT A
FORM OF CERTIFICATE OF COMPLETION
The undersigned hereby certifies that ____________________________, has fully and
completely complied with its obligations under 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. ____________________ (the
“Contract”) with respect to the construction of the approved construction plans at
________________________, legally described as _____________________________ and is
released and forever discharged from its obligations under such Contract.
DATED: ___________________
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
RICHFIELD
By: __________________________________
Its: Executive Director
STATE OF MINNESOTA )
) SS
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this ____ day of
_______________, 20__, by _________________________ the 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:
Kennedy & Graven, Chartered
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
401253v8 CBR RC125-65
B-1
EXHIBIT B
PROGRAM GUIDELINES – LOT SALE PROGRAM
RICHFIELD REDISCOVERED
PROGRAM GUIDELINES
LOT SALE PROGRAM
REVISED: March 20, 2017
B-2
401253v8 CBR RC125-65
PROGRAM OBJECTIVES ............................................................................................................................ 3
DEFINITIONS................................................................................................................................................ 3
PROGRAM BASICS ..................................................................................................................................... 3
APPLICATION REQUIREMENTS ................................................................................................................ 4
ADDITIONAL REQUIREMENTS .................................................................................................................. 5
HOUSE DESIGN AND SITE DEVELOPMENT REQUIREMENTS .............................................................. 5
New House Standards ............................................................................................................................ 6
Site Standards ......................................................................................................................................... 6
Construction Requirements .................................................................................................................. 6
General Standards .................................................................................................................................. 7
Green Community Concepts ................................................................................................................. 7
CITY REVIEW PROCEDURE ....................................................................................................................... 8
LOT SALE TO BUILDER/BUYER ................................................................................................................ 9
PROGRAM MARKETING ............................................................................................................................. 9
DATA PRIVACY ............................................................................................................................................ 9
B-3
401253v8 CBR RC125-65
This document has been developed as a guidance tool for program administration. It should not be interpreted as
constituting any contractual agreement or liability by the City or Housing and Redevelopment Authority (HRA). The
HRA may modify or divert from the guidelines where it deems appropriate.
I. Program Objectives
1. To remove substandard, functionally obsolete housing on scattered sites throughout the City and
replace with new, higher-valued housing.
2. To eliminate the blighting influence of substandard housing, thus improving residential neighborhoods.
3. To alleviate the shortage of housing choices for families.
4. To facilitate the construction of larger three- to four-bedroom, owner-occupied homes designed for
families.
5. To facilitate the construction of multi-unit, owner-occupied homes designed to expand family
opportunities or to serve elderly residents.
These objectives will be achieved through the sale of lots by the Housing and Redevelopment Authority to
Builder/Buyer teams for the development of newly constructed homes.
II. Definitions
Applicant: An individual who submits an application for a Richfield Rediscovered lot. The Applicant may be a
Builder or the end Buyer. If the Applicant is a Builder, an end Buyer should be identified. If the Applicant is the
Buyer, the Applicant must submit a signed contract between the Builder and the Buyer to build a home on the lot
identified in the application.
Buyer: An individual(s) who will build, own and occupy a new housing unit in Richfield.
The Buyer will occupy the property and not offer it for rent. The Buyer may not also function as the Builder on a
Richfield Rediscovered project. The Buyer and Builder must be unrelated separate legal entities. A speculative
project by a Buyer may be considered if all other program requirements can be met. However, neither the Buyer, the
Buyer’s Builder or Builder’s subcontractors, or the Builder’s realty agents may occupy or purchase the property.
Buyers, unless licensed in the trade specified, may not put any sweat equity into the construction of the foundation,
wall/roof framing, shingling, exterior work, electrical/plumbing/HVAC systems or interior carpentry.
A Buyer, and all members of his/her household, is limited to building a home through the program no more than
once every seven years.
Builder: Licensed Contractor who has signed a contract with the Buyer to build a home on the lot identified in the
application.
Contract for Private Development: A contract between the HRA and the Builder or Buyer that establishes the
conditions under which the lot will be sold and the proposed house will be developed.
Green Community Concepts Plan: A written plan indicating how the proposed development will incorporate green
building features and concepts. Priority will be given to projects that incorporate green building features.
HRA: Housing and Redevelopment Authority in and for the City of Richfield.
Lot List: A listing of available lots for sale. Information regarding the lot location, size and sale price is provided.
III. Program Basics
1. HRA publishes a list of available vacant lots for purchase including sale price and development criteria.
2. Builder/Buyer team proposes a plan for a lot consistent with development criteria and program
requirements and makes an offer to purchase.
B-4
401253v8 CBR RC125-65
3. HRA may issue a Request for Proposals for a specific lot(s) with a specific submittal deadline. HRA
staff review all Proposals submitted by the deadline for consistency with development criteria and
program requirements. The Proposal that best meets the criteria and requirements is selected to develop
the lot.
4. HRA approves lot sale.
5. Lot is sold to Builder or Buyer.
6. Builder constructs new home.
7. Projects must be completed within one year of HRA approval of the project.
IV. Application Requirements
The following must be submitted for application to the program:
1. $550 application fee
An application fee must be paid at the time of application. This fee is non-refundable and is not
part of the lot price.
2. Application Form
3. Floor plans
The layout of all levels, including basement and unfinished space, must be provided.
4. Elevations
Elevations of all four sides of the house, including view of garage shall be provided. Colored
renderings may also be required.
5. Site plan
The site plan shall indicate the location of the new house, walkways and garage.
6. Landscaping plan
A landscaping plan must indicate the location and type of trees, shrubbery, flowers and
landscaping materials (e.g. rocks, mulch) and any existing trees to be preserved.
7. Detail of construction materials to be used on the project.
8. Green Community Concepts Plan
The plan should indicate what Green Community Concepts will be incorporated into the project.
9. Construction timeline
Construction must be completed with one year of the purchase of the property.
10. Signed contract with Builder
11. Purchase agreement
If the Builder plans to purchase the lot, the application must include a valid purchase agreement
between the Buyer and the Builder for the lot to be developed.
12. Financial capability statement
A statement from a financial institution indicating willingness to provide sufficient construction
capital to complete the project must be provided.
13. Builder References
a. Five previous customers
b. Three major suppliers, one being the construction supplier
c. Building inspectors from two cities where the Builder has constructed new housing within the
past three years
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14. Proof of Builder’s Comprehensive General Liability with Property Damage Protection.
15. Proof of sufficient worker’s compensation insurance coverage by the Builder.
16. Written warranty program
To be provided to the Buyer, which guarantees at a minimum, warranted repairs as required by
Minnesota State Statute.
V. Additional Program Requirements
1. The Applicant is expected to meet with an architectural/design consultant prior to submitting an application.
A two-hour consultation is available through the HRA at a cost of $25 to the applicant. See the City’s
website (www.cityofrichfield.org) for more information. This requirement may be waived if the applicant is
using an architect for the project.
2. The site will be sold to the Builder or Buyer at the fair market value as appears on the Lot List. The HRA
will not accept offers for less than the established sale price.
3. A Contract for Private Development is signed by the HRA and the Builder or the Buyer. The Contract is a
standard form which includes conditions for acquisition and development of the property. The Contract
will establish a minimum required end-value for the property based on construction estimates provided by
the applicant. The Builder or Buyer will be expected to agree to the terms of the Contract before the
application can be scheduled on the HRA agenda.
4. The lot can be sold to either the Builder or the Buyer. If the lot is sold to the Builder, the Builder will pay
cash for the lot at closing and submit a Letter of Credit or cash escrow for $10,000. The Letter of Credit
must be from a financial institution incorporated in the Twin Cities metropolitan area. The cash escrow will
be held in a non-interest bearing account. The Letter of Credit or cash escrow will be released once the
construction and landscape work are completed and a final Certificate of Occupancy is issued.
5. If the lot is sold to the Builder and the Builder fails to complete construction as approved by the HRA, the
Letter of Credit or cash escrow may be drawn upon by the HRA. In addition, the Contract for Private
Development will contain a reverter provision, which will enable the HRA to reclaim ownership of the
property in the event of a default in the Contract. In the event that the Builder fails to complete
construction, the HRA may exercise its rights under the reverter provision, as well as draw upon the Letter
of Credit or cash escrow.
6. If the lot is sold to the Buyer, the Buyer will pay cash for the lot at closing and a $10,000 mortgage in favor
of the HRA will be filed on the property. The mortgage will be in first position. The HRA may consider
subordinating its interest in appropriate cases.
7. If the lot is sold to the Buyer and the Buyer fails to complete construction as approved by the HRA, the
HRA may exercise its rights provided in the mortgage.
8. A Buyer, and all members of his/her household, is limited to purchasing no more than one lot every seven
years.
VI. House Design and Site Development Requirements
The development of all sites shall meet the development criteria listed below, as reviewed and approved by the HRA.
To maximize the development of a given lot, the HRA reserves the right to explore all development options without
obligating the HRA to support any specific proposal, idea or solicitation.
Housing design is a critical element of the program. Siding materials, exterior façade presentation, roof, window,
siding and building line variability, finished landscape, interior space function and use are all important issues of
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design to the HRA. The design requirements were created to ensure that the homes built on the HRA-sold lots blend
in with the surrounding neighborhood and respond to the specific concerns of the HRA.
All new houses built under the Richfield Rediscovered Program must meet the requirements of the City’s Zoning
Code and additional criteria, as listed in this document.
A. New House Standards
1. New dwelling must be owner-occupied.
2. Three finished bedrooms are required, at a minimum.
3. Two finished bathrooms are required, at a minimum.
4. Two-car garage is required, at a minimum.
5. A full basement is required, unless the selected design results in a split-level or a garden-level type of
basement. In the case of an “accessible” house, a basement may be omitted if it would otherwise prohibit
accessible design elements.
B. Site Standards
1. After construction, the site must be fully landscaped, including plantings around the foundation. The entire
grounds shall be landscaped and be aesthetically pleasing in all seasons. Land forms and plant materials
shall be used to define the site and blend neatly with adjoining properties. Specific lot line blending
requirements may be required, as appropriate, for specific sites.
At a minimum, the applicant must meet the “Landscaping and Screening Requirements” in the City’s
Zoning Code under Section 544.03, Subd. 4, General landscaping requirements and Subd. 5, Residential
sites. The code is available on the City’s website: http://www.ci.richfield.mn.us
To the greatest extent possible, existing trees should be preserved. Any trees removed must be replaced
(they do not have to be the same species or in the same location) and should be labeled on the required
landscape plan.
2. Utility meters shall be screened from street view and locations must be specified on plans.
3. Site drainage should be accommodated on the site so that water is directed away from the new home and
the neighboring properties. Neighboring properties must not be disturbed by the creation of drainage
swales. Specific storm water management requirements may be required, as appropriate, including the
addition of gutters or on-site management for specific sites. Construction and the finished structure must
not have a detrimental impact on storm water drainage patterns in the neighborhood.
4. All air conditioning units must be located in the rear yard of the house, or as approved by the HRA.
C. Construction Requirements
1. Existing trees identified on the landscape plan as being preserved, must be protected during construction.
A tree wrap with board reinforcements shall be used on trees directly adjacent to active grading and
construction areas. Damaged or destroyed trees must be replaced.
2. The construction site, neighboring properties and adjacent public streets shall be kept free of construction
debris at all times.
3. No construction workers, construction equipment or construction material shall encroach upon neighboring
properties.
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4. The property shall have a new sanitary service line installed to the City sanitary sewer main consisting of
schedule 40 PVC or equivalent. If there is an existing 6" sewer stub at the property line, it must be lined
with 4" schedule 40 PVC or equivalent to the City’s sanitary main, and it must include a "donut" at the end
with cement.
The line must be televised after installation to ensure the following:
1. There are no obstructions in the line.
2. The PVC liner is not protruding into the City’s sanitary sewer main line.
D. General Standards
1. The value of the new home must meet or exceed the minimum value specified in the Contract for Private
Redevelopment.
2. All homes in the Richfield Rediscovered Program must be stick-built or high-quality modular, new
construction.
3. Exterior materials (siding, soffit, doors and windows) should be low-maintenance and durable. Brick,
aluminum, vinyl and fiber cement siding are preferred. Natural cedar lap is acceptable if properly stained or
painted. Hardboard panels or hardboard lap siding are prohibited. Roof valleys must have metal valleys
and not be woven.
4. Unit height and mass of the new house shall be compatible with the scale of the surrounding homes in the
neighborhood.
5. Plans must present a balanced and pleasing distribution of wall, door and window areas from all views.
6. The dominance of the garage door must be minimized through placement, architectural detail, door design
and utilization and design of windows. Garages, where the garage door faces the street, shall not be located
closer to the front lot line than the foremost facade of the principal building facing the front property line.
Garage sidewalls that face the street should appear to contain habitable space. This can be accomplished by
incorporating windows and other design elements into the garage wall that are in character with the
remainder of the dwelling. For lots that have alley access, the garage should be oriented to access the alley.
7. All building plans must have been prepared in consultation with an architect or qualified draftsperson. All
requirements by the Building Inspections Division must be met.
8. All Richfield Rediscovered houses must meet or exceed Minnesota Energy Code requirements.
9. All new homes shall be built to provide high quality sound insulation. Recommendations for sound
insulation measures may be provided on a site-by-site basis. All construction must conform to sound
attenuation building standards as required by Zoning Ordinance Section 541.19 for properties located
within the 2007 60-62 DNL Contour and 2007 63 or greater DNL contours.
9. If a variance is required to construct the proposed development, the HRA may, at its sole discretion, choose
to reject the application.
10. If the HRA accepts an application that needs a variance(s), sale of the property will be contingent upon the
applicant obtaining the necessary variance(s). The Applicant is responsible for applying for the variance(s)
at its own expense. The HRA, as owner of the property, will, however, cooperate with the application.
E. Green Community Concepts
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Priority will be given to projects incorporating the green community concepts listed below. Any concepts
the applicant would like considered during the application process should be explained in a written plan
submitted with the application. A $5,000 rebate will be provided to the Applicant for projects that obtain
certification through LEED for Homes, Minnesota GreenStar or Minnesota Green Communities.
1. Protect and conserve water and soil. To reduce water consumption, consider the use of water-conserving
appliances, fixtures, and landscaping. Steps should be taken to minimize the loss of soil and sediment
during construction and occupancy to reduce storm-water sediment and air pollution.
2. Minimize energy consumption. Reduce energy consumption by taking advantage of natural heating, cooling
and day lighting, and by using energy-efficient appliances, equipment and lighting.
3. Enhance indoor environmental quality. Use non-toxic materials, ventilation and exhaust systems, and
moisture control products and systems.
4. Use environmentally-preferable materials and resources. Use locally-produced, salvaged and/or
manufactured materials, products with recycled content or from renewable sources, recyclable or reusable
materials, and low-VOC-emitting materials.
5. Reduce waste. Reduce and manage wastes generated during the construction process and operation of
buildings. If demolition occurs, sort and recycle leftover materials and debris.
VII. City Review Procedure
1. Applicant reviews proposed project with HRA staff before plans are finalized.
2. Applicant submits application, plans, and application fee at least 45 days prior to the HRA meeting.
3. An application is considered to be received when delivered personally to HRA staff in a pre-arranged
meeting. If more than one application is submitted for a lot within five-working days, all applications will
be reviewed, and the application that best meets the program guidelines will be selected. The application fee
will be returned to the Applicant whose proposal was not selected.Following this five-day period, the lot
will be considered reserved by the selected application and no additional applications will be accepted for
the proposed lot while the application is being processed.
4. If an application is determined to be incomplete, the applicant will have 30 days to submit a complete
application. If a complete application is not received within 30 days, the application will be rejected and
the lot will be made available for new applications.
5. HRA staff review application to ensure conformance with House Design and Site Development
Requirements.
6. HRA staff may reject or accept an application at its sole discretion.
7. HRA staff may choose to issue a Request for Proposals (RFP) for a lot. In this case, Staff issues an RFP,
giving a specific time period within which proposals may be submitted. HRA staff review all proposals for
consistency with development criteria and program requirements. The proposal that best meets the criteria
and requirements is selected to develop the lot. The applicant will have 30 days to submit a complete
application. If a complete application is not received within 30 days, the application will be rejected. Staff
may elect to award the lot to another submitted proposal or solicit additional proposals.
8. The Builder or Buyer executes a Contract for Private Redevelopment.
9. An application is determined to be complete at least three weeks prior to the HRA meeting.
10. HRA staff publishes a legal notice of the public hearing and prepares a report and recommendation for the
HRA.
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401253v8 CBR RC125-65
11. HRA reviews application, conducts a public hearing, and takes action at the HRA meeting.
12. If approved, the Contract for Private Redevelopment is executed by the HRA.
VIII. Lot Sale to Builder or Buyer
1. Upon approval of the application by the HRA, a closing will be scheduled between the HRA and the
Builder or Buyer.
2. The HRA will prepare all statements, affidavits, documents, and general release forms required for closing.
3. The Builder applies for a building permit prior to closing. The Builder is responsible for acquiring the
necessary building permits with the City of Richfield Building Inspections Division. If changes to the plans
are required by the Inspections Division, the applicant must notify HRA staff.
4. The Applicant provides evidence to HRA staff that all requirements to proceed with construction, as
determined in the Contract for Private Redevelopment, have been met.
5. The HRA conveys the property to the Builder or Buyer by Quit Claim Deed. The site will be sold to the
Builder or Buyer at the fair market value as appears on the Lot List.
6. At closing with the Builder, the Builder provides a Letter of Credit or cash escrow for $10,000 to the HRA.
7. At closing with the Buyer, the Buyer signs a mortgage and promissory note for $10,000 in favor of the
HRA.
8. Upon completion of the project, the Letter of Credit or cash escrow is released to the Builder or the Buyer’s
mortgage is released. A Certificate of Completion is executed by the HRA, releasing the obligations of the
Contract for Private Redevelopment.
IX. Program Marketing
Richfield Rediscovered program marketing is entirely at the discretion of the HRA. It may include the following:
1. Buyer Solicitation. The HRA may market the program to potential Buyers through promotional articles,
direct mail, the Internet, or other methods as deemed appropriate. Buyers may be any financially capable
individual or household, including first-time buyers, move-up buyers or empty-nesters.
2. Public Promotion.
a. The HRA will periodically provide information about the program through articles in city
publications, on the City’s web site, on the Community Cable channel, or via press releases to
promote community awareness.
b. A public open house may be held to provide an opportunity for residents and other interested
parties to collectively view the finished homes. The Parade of Homes Fall Showcase and Spring
Preview may also accomplish this.
c. Photos will be taken of finished homes and may be used to promote the program.
A program information package will be mailed to all interested participants. The information packet may include the
following:
1. Lot List
2. Richfield Rediscovered Lot Sale Procedural Guidelines
3. Application Form
4. Sample Contract for Private Redevelopment
X. Data Privacy
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The HRA is subject to Minnesota Statutes Chapter 13 (the “Minnesota Government Data Practices Act”). Under
the Minnesota Government Data Practices Act, the names and addresses of applicants for or recipients of
assistance under this program and the amount of assistance received under this program are public data. All other
financial information submitted to the HRA for purposes of the program application is considered private data.
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401253v8 CBR RC125-65
EXHIBIT C
QUIT CLAIM DEED
STATE DEED TAX DUE HEREON: $_______
Date: ____________________
FOR VALUABLE CONSIDERATION, 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,
Grantor, hereby conveys and quit claims to _____________________, a _______________
under the laws of the State of ____________, Grantee, real property in Hennepin County,
Minnesota, described as follows:
, according to the map or plat thereof on file or of record in the office of the Hennepin County
Recorder.
This deed is subject to that certain Contract for Private Development between Grantor and
Grantee, dated ___, 20__ (the “Contract”), recorded ___, 20__, in the office of the Hennepin
County Recorder/Registrar of Titles as Document No. ______________. The Contract
provides that the Grantee’s rights and interest in the real property described above are subject to the
Grantor’s right to re-enter and revest in Grantor title to the Property under conditions specified
therein, including but not limited to termination of the Grantor’s right to re-enter and revest upon
issuance of a Certificate of Completion as defined in the Agreement.
(if more space is needed, continue on back)
together with all hereditaments and appurtenances.
The Seller certifies that the seller does not know of any wells on the described real property.
A well disclosure certificate accompanies this document.
I am familiar with the property described in this instrument and I certify that the status and
number of wells on the described real property have not changed since the last previously
filed well disclosure certificate.
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD
Affix Deed Tax Stamp Here
By
Its Chairperson
By
Its Executive Director
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401253v8 CBR RC125-65
NOTARIAL STAMP OR SEAL (OR OTHER TITLE OR RAK)
NOTARIAL STAMP OR SEAL (OR OTHER TITLE OR RAK)
STATE OF MINNESOTA
} ss.
COUNTY OF HENNEPIN
The foregoing was acknowledged before me this ____ day of _______, 20___, by
_____________, the Chairperson of the Housing and Redevelopment Authority in and for the
City of Richfield, a public body corporate and politic under the laws of Minnesota, on behalf of
the corporation, Grantor.
____________________________________
SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT
STATE OF MINNESOTA
} ss.
COUNTY OF HENNEPIN
The foregoing was acknowledged before me this ____________ day of _______, 20__,
by _____________, the Executive Director, of 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 corporation, Grantor.
____________________________________
SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT
Check here if part or all of the land is Registered (Torrens)
Tax Statements for the real property described in this
instrument should be sent to (include name and
address of Grantee):
This instrument drafted by:
Kennedy & Graven, Chartered
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
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401253v8 CBR RC125-65
EXHIBIT D
WELL DISCLOSURE
The Seller certifies that the seller does not know of any wells on the described real property.
A well disclosure certificate accompanies this document. [form attached]
X The status and number of wells on the described real property have not changed since the last
previously filed well disclosure certificate.
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401253v8 CBR RC125-65
401253v8 CBR RC125-65
CONTRACT FOR PRIVATE DEVELOPMENT
Between
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD
and
Endres Custom Homes, Inc.
for property located at
6416 16th Avenue South
This Instrument Drafted by:
The Housing and Redevelopment Authority
in and for the City of Richfield
6700 Portland Avenue South
Richfield, Minnesota 55423
Telephone: (612) 861-9760
401253v8 CBR RC125-65
1
CONTRACT FOR PRIVATE DEVELOPMENT
THIS AGREEMENT, made and entered into as of this ______ day of ________, 20___,
by and between 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, having its principal
office at 6700 Portland Avenue, Richfield, Minnesota (HRA) and Endres Custom Homes, Inc., a
Minnesota Corporation (Builder).
WITNESSETH:
WHEREAS, the City of Richfield (City) and the HRA have previously created and
established a Redevelopment Project (Project) pursuant to the authority granted in Minnesota
Statutes, Sections 469.001 through 469.047 (collectively, the Act); and
WHEREAS, pursuant to the Act, the City and the HRA have previously adopted a
redevelopment plan for the Project (Redevelopment Plan); and
WHEREAS, in order to achieve the objectives of the Redevelopment Plan and
particularly to make specified land in the Project available for development by private enterprise
for and in accordance with the Redevelopment Plan, the HRA has determined to provide
substantial aid and assistance to finance development costs in the Project; and
WHEREAS, the Builder has proposed a development as hereinafter defined within the
Project which the HRA has determined will promote and carry out the objectives for which the
Project has been undertaken, will assist in carrying out the obligations of the Redevelopment
Plan, will be in the vital best interests of the City and the health, safety and welfare of its
residents and is in accord with the public purposes and provisions of the applicable state and
local laws and requirements under which development in the Project has been undertaken and is
being assisted.
NOW, THEREFORE, in consideration of the mutual covenants and obligation of the
HRA and the Builder, each party does hereby represent, covenant and agree with the other as
follows:
ARTICLE I.
DEFINITIONS, EXHIBITS, RULES OF INTERPRETATION
Section 1.1. Definitions. In this Agreement, the following terms have the meaning
given below unless the context clearly requires otherwise:
Building Plans. Detailed plans for the Improvements to be constructed on the Property,
as required by the local building official for issuance of a building permit.
401253v8 CBR RC125-65
2
Construction Plans. The construction plans approved by the HRA pursuant to Section
4.1 of this Agreement. The Construction Plans include a schedule for construction of the
Improvements, preliminary plans and schematics of the Improvements to be constructed, and a
landscaping plan.
Development. The Property and the Improvements to be constructed thereon according
to the Construction Plans approved by the HRA.
Event of Default. Event of Default has the meaning given such term in Section 8.1.
Guidelines. The Richfield Rediscovered Program Guidelines Lot Sale Program, revised
March 20, 2017, and attached as Exhibit B to this Agreement.
Homeowner. The individuals purchasing the Property from Builder and who will be
living in the home following purchase.
Improvements. Each and all of the structures and site improvements constructed on the
Property by the Builder, as specified in the Construction Plans to be approved by the HRA.
Minimum Market Value. $309,000, which is the minimum market value for the land
and Improvements as confirmed by the Hennepin County Assessor.
Mortgage. A mortgage obtained by the Builder from a third party lender in accordance
with Section 7.2 of this Agreement.
Property. The real property legally described as:
Lot 5, Block 11, Nokomis Gardens Rearrangement of Blocks 7-11, and 12-, Girard
Parkview, Hennepin County, Minnesota
Located on land having a street address of:
6416 16th Avenue South
Unavoidable Delays. Delays which are the direct result of strikes, labor troubles, fire or
other casualty to the Improvements, litigation commenced by third parties which results in delays
or acts of any federal, state or local government, except those contemplated by this Agreement,
which are beyond the control of the Builder.
Section 1.2. Exhibits. The following Exhibits are attached to and by reference made a
part of this Agreement:
A. Form of Certificate of Completion
B. Program Guidelines – Lot Sale Program
401253v8 CBR RC125-65
3
C. Form of Quit Claim Deed
D. Well Disclosure
Section 1.3. Rules of Interpretation.
(a) This Agreement shall be interpreted in accordance with and governed by the laws
of the State of Minnesota.
(b) The words “herein” and “hereof” and words of similar import, without reference
to any particular section or subdivision refer to this Agreement as a whole rather than any
particular section or subdivision hereof.
(c) References herein to any particular section or subdivision hereof are to the section
or subdivision of this Agreement as originally executed.
(d) Any titles of the several parts, articles and sections of this Agreement are inserted
for convenience and reference only and shall be disregarded in construing or interpreting any of
its provisions.
ARTICLE II.
REPRESENTATIONS AND UNDERTAKINGS
Section 2.1. By the Builder. The Builder makes the following representations and
undertakings:
(a) The Builder has the legal authority and power to enter into this Agreement and has
duly authorized the execution, delivery and performance of this Agreement;
(b) The Builder has the necessary equity capital or has obtained commitments for
financing necessary for construction of the Improvements;
(c) The Builder will construct the Improvements in accordance with the terms of this
Agreement and all local, state and federal laws and regulations;
(d) The Builder will obtain, in a timely manner, all required permits, licenses and
approvals, and will meet, in a timely manner, the requirements of all local, state and federal laws
and regulations which must be obtained or met before the Improvements may be constructed;
(e) The plans for the Improvements have been prepared by a qualified draftsperson or
architect; and
(f) The Builder has read and understands the Guidelines and agrees to be bound by
them.
401253v8 CBR RC125-65
4
Section 2.2. By the HRA. The HRA makes the following representations as the basis
for the undertaking on its part herein contained:
(a) The HRA is authorized by law to enter into this Agreement and to carry out its
obligations hereunder; and
(b) The HRA will, in a timely manner, subject to all notification requirements, review
and act upon all submittals and applications of the Builder and will cooperate with the efforts of
the Builder to secure the granting of any permit, license, or other approval required to allow the
construction of the Improvements.
ARTICLE III.
ACQUISITION OF PROPERTY; CONVEYANCE TO BUILDER
Section 3.1. Purchase of Property by Builder. The HRA agrees to sell the Property to
Builder and the Builder agrees to purchase the Property from the HRA in an “as-is” condition.
The sale of the Property is contingent upon the Builder providing the HRA with evidence
satisfactory to the HRA that Builder has entered into a binding legal commitment, in the form of
a Purchase Agreement for the resale of the Property to a Homeowner following completion of the
Improvements. The HRA agrees to convey the Property to the Builder by Quit Claim Deed in the
general form of Exhibit C. The HRA’s deed to the Builder will contain the right of reverter
required in Section 8.3. The purchase price for the Property, payable at Closing, will be $37,725
(“Purchase Price”).
Section 3.2. Title and Examination. As soon as reasonably possible after execution of
this Contract for Private Development by both parties,
(a) HRA shall surrender any abstract of title and a copy of any owner’s title insurance
policy for the property, if in HRA’s possession or control, to Builder or to Builder’s designated
title service provider; and
(b) Builder shall obtain the title evidence determined necessary or desirable by
Builder or Builder’s lender, including but not limited to title searches, title examinations,
abstracting, a title insurance commitment or an attorney’s title opinion, at Builder’s selection and
cost, and provide a copy to the HRA.
The Builder shall have 20 days from the date it receives such title evidence to raise any
objections to title it may have. Objections not made within such time will be deemed waived.
The HRA shall have 90 days from the date of such objection to effect a cure; provided, however,
that the HRA shall have no obligation to cure any objections, and may inform Builder of such.
The Builder may then elect to close notwithstanding the uncured objections or declare this
Agreement null and void, and the parties will thereby be released from any further obligation
hereunder.
401253v8 CBR RC125-65
5
Section 3.3. Taxes and Special Assessments. Real estate taxes and installments of
special assessments will be prorated between the HRA and Builder as of the date of closing.
Section 3.4. Soil Conditions and Hazardous Wastes. The Builder acknowledges that
the HRA makes no representations or warranties as to the conditions of the soils on the Property,
its fitness for the construction of improvements or any other purpose for which the Builder may
use the Property, or regarding the presence of hazardous wastes on the Property. The HRA will
allow reasonable access to the Property for the Builder to conduct such tests regarding soils
conditions and hazardous wastes as the Buyer may desire. Permission to enter the Property to
conduct such tests must be given in writing under reasonable terms and conditions established by
the HRA.
Section 3.5. Site Clearance. The HRA will be responsible for clearance of all buildings
as required to prepare the Property for development. All other site preparation is the
responsibility of Builder. Builder will comply with all of the provisions of the Guidelines
relating to tree protection, preservation and replacement.
Section 3.6. Other Preconditions to Closing. Closing may not take place until the
HRA is satisfied that the Project is in all respects in full compliance with the provisions of the
Guidelines contained in Exhibit B. It is anticipated that the Builder will involve the Homeowner
in the various activities required under the Guidelines so that the Homeowner will have an
opportunity to contribute suggestions concerning development of the Property.
Section 3.7. Closing. Closing must take place March 1, 2018, (“Closing Date”) or such
other date as may be agreed to by the Builder and HRA in writing. At Closing, the Builder will
provide the HRA with a a cash deposit for the escrow account established pursuant to Section
5.1, in addition to the Purchase Price.
Section 3.8. Closing Costs. The Builder will pay: (a) the closing fees charged by its title
insurance company or other closing agent, if any, utilized to close the transaction for
Builder; (b) title services chosen by Builder pursuant to Section 3.2 above, including the premium for
title insurance policy, if any, and (c) the recording fees for the Contract for Private Development and
the deed transferring title to the Builder. HRA will pay all other fees normally paid by sellers,
including (a) any transfer taxes, and (b) fees and charges related to the filing of any instrument
required to make title marketable. Each party shall pay its own attorney fees.
Section 3.9. Sewer and Water. HRA warrants that city water is available at the lot line
and city sewer is available at the curb.
Section 3.10. ISTS Disclosure. HRA is not aware of any individual sewage treatment
system on the property. Buyer is responsible for all costs of removing any individual sewage
treatment system that may be discovered on the Property.
Section 3.11. Well Disclosure. HRA’s knowledge of wells on the Property is disclosed
in Exhibit D.
401253v8 CBR RC125-65
6
ARTICLE IV.
CONSTRUCTION OF IMPROVEMENTS
Section 4.1. Construction of Improvements. The Builder shall construct the
Improvements on the Property in accordance with the Guidelines and the Construction Plans,
shall cause the Improvements to meet or exceed the Minimum Market Value specified in Section
1.1, and shall maintain, preserve and keep the Improvements in good repair and condition. The
Builder shall provide his or her proposed construction plans to the HRA for review; if the
proposed construction plans are in conformity with this Agreement and the Guidelines, the HRA
will approve the Construction Plans following review and comment by the Homeowner.
Section 4.2. Construction Plans. No building permit will be issued by the City unless
the Building Plans are in conformity with the Guidelines, the Construction Plans, the Builder’s
Minimum Market Value, other requirements contained in this Agreement, and all local, state and
federal regulations. The Builder shall provide the HRA with a set of Building Plans to be used in
connection with any application for a building permit. The HRA shall, within 25 days of receipt
of the Building Plans review the same to determine whether the foregoing requirements have
been met. If the HRA determines such Building Plans to be deficient, it shall notify the Builder
in writing stating the deficiencies and the steps necessary for correction. Issuance of the building
permit by the City shall be a conclusive determination that the Building Plans have been
approved and shall satisfy the provisions of this Section 4.2.
Section 4.3. Schedule of Construction. Subject to Unavoidable Delays, construction of
the Improvements shall be completed prior to September 1, 2018 (“Construction Completion
Date”). All construction shall be in conformity with the approved Construction Plans and the
Guidelines. Periodically during construction the Builder shall make reports in such detail as may
reasonably be requested by the HRA concerning the actual progress of construction. If at any
time prior to completion of construction the HRA has cause to believe that the Builder will be
unable to complete construction of the Improvements in the time permitted by this Section 4.3, it
may notify the Builder and demand assurances from the Builder regarding the Builder’s
construction schedule. If such assurances are not forthcoming or are deemed by the HRA at its
sole discretion to be inadequate, the HRA may declare an Event of Default and may avail itself of
any of the remedies specified in Section 8.2 of this Agreement.
Section 4.4. Certificate of Completion. After notification by the Builder of completion
of construction of the Improvements, the HRA shall inspect the construction to determine
whether the Improvements have been completed in accordance with the Construction Plans and
the terms of this Agreement, including the date of the completion thereof. In the event that the
HRA is satisfied with the construction, and upon closing on the sale of the Property to the
Homeowner, the HRA shall furnish the Builder with a Certificate of Completion in the form
attached hereto as Exhibit A. Such certification by the HRA shall be a conclusive determination
of satisfaction and termination of the agreements and covenants in this Agreement. Issuance of
the Certificate of Completion shall also serve as a satisfaction of any obligation of Builder
401253v8 CBR RC125-65
7
secured by the escrow account established under Section 5.1, and the cash in the escrow account
will be released to the Builder. At the time a Certificate of Completion is issued, the HRA will
also provide Builder with a $5,000 cash rebate if Builder has obtained Green Community
Concepts certification through LEED for Homes, Minnesota GreenStar, Minnesota Green
Communities or Minnesota Green Path.
If the HRA shall refuse or fail to provide certification in accordance with the provisions
of this Section 4.4, the HRA shall within 15 days of such notification provide the Builder with a
written statement, indicating in adequate detail in what respects the Builder has failed to
complete the Improvements in accordance with the provisions of this Agreement necessary, in
the opinion of the HRA, for the Builder to take or perform in order to obtain such certification.
Section 4.5. Failure to Construct. In the event that construction of the Improvements is
not completed as provided in Section 4.3 of this Agreement, an Event of Default shall be deemed
to have occurred, and the HRA may proceed with its remedies under Section 8.2.
ARTICLE V.
REDEVELOPMENT ASSISTANCE
Section 5.1. Establishment of Cash Escrow. Builder acknowledges that although it is
purchasing the Property at its fair market value as raw land, the HRA has incurred significant
costs in acquiring and preparing the Property for development by Builder. At Closing, Builder
will deliver to the HRA $10,000 to be placed in a non-interest bearing escrow account pursuant
to the Escrow Agreement, dated as of the date hereof, between Builder and HRA. The obligation
to pay the $10,000 to the HRA will be forgiven, and the cash in the escrow account will be
returned to Builder if: (i) the Builder receives a Certificate of Completion; and (ii) the Builder is
not otherwise in default of any of its obligations hereunder. If such have not occurred, an Event
of Default shall be deemed to have occurred and the HRA may exercise its remedies under
Section 8.2. In certain circumstances, after construction is complete, the Builder or Buyer may be
required to deposit another cash escrow with the planning department of the City for incomplete
improvements. In these cases, following the HRA’s release of the cash escrow, the cash escrow
will be transferred to the City’s planning department for such purpose. The terms of the escrow
will be set forth in an Escrow Agreement between the HRA and the Builder or Buyer.
ARTICLE VI.
FINANCING
Section 6.1. Financing. HRA acknowledges that Builder has submitted evidence of
financing for the Improvements in compliance with the provisions of Section 2.1(b) of this
Agreement. Builder must notify HRA immediately of any changes to or withdrawal of the
approved financing, HRA shall have 10 days to approve or disapprove changes in financing. If
the HRA rejects a change in the approved financing or if the approved financing is withdrawn,
the Builder shall have 30 days or such additional period of time as the Builder may reasonably
401253v8 CBR RC125-65
8
require from the date of the HRA’s notification to submit evidence of financing satisfactory to
the HRA. If the Builder fails to submit such evidence or fails to use due diligence in pursuing
financing, the HRA may terminate this Agreement and both parties shall be released from any
further obligation or liability hereunder. Closing shall not take place until Builder has provided
HRA with acceptable evidence of financing for construction of the Improvements.
Section 6.2. Copy of Notice of Default to Lender. Whenever the HRA shall deliver
any notice or demand to the Builder with respect to any Event of Default by the Builder in its
obligations or covenants under this Agreement, the HRA shall at the same time forward a copy of
such notice or demand to each holder of any Mortgage authorized by the Agreement at the last
address of such holder shown in the records of the HRA.
Section 6.3. Subordination. In order to facilitate obtaining financing for the
construction of the Improvements by the Builder, the HRA may, in its sole and exclusive
discretion, agree to modify this Agreement in the manner and to the extent the HRA deems
reasonable, upon request by the financial institution and the Builder.
ARTICLE VII.
PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER
Section 7.1. Representation as to Redevelopment. The Builder represents and agrees
that its undertakings pursuant to the Agreement, are for the purpose of development of the
Property and not for speculation in land holding. The Builder further recognizes that, in view of
the importance of the Development to the general welfare of Richfield and the substantial
financing and other public aids that have been made available by the HRA for the purpose of
making the Development possible, the qualification and identity of the Builder are of particular
concern to the HRA. The Builder further recognizes that it is because of such qualifications and
identity that the HRA is entering into this Agreement, and, in so doing, is further willing to rely
on the representations and undertakings of the Builder for the faithful performance of all
undertakings and covenants agreed by the Builder to be performed.
Section 7.2. Prohibition Against Transfer of Property and Assignment of
Agreement. For the reasons set out in Section 7.1 of this Agreement, the Builder represents and
agrees as follows:
(a) Except as specifically allowed by this section, Builder has not made or created,
and, prior to the issuance of the Certificate of Completion, Builder will not make or create, or
suffer to be made or created, any total or partial sale, assignment, conveyance, or any trust in
respect to this Agreement or the Property or any part thereof or any interest therein, or any
contract or agreement to do any of the same, without the prior written approval of the HRA.
(b) This provision shall not be deemed as preventing the Builder from entering into a
Purchase Agreement for the sale of the Property to a Homeowner.
401253v8 CBR RC125-65
9
(c) This provision does not prohibit conveyances that are only by way of security for,
and only for the purpose of obtaining financing necessary to enable the Builder or any successor
in interest to the Property, or any part thereof, to perform its obligations with respect to the
Development under this Agreement, and any other purpose authorized by this Agreement. Any
Mortgage obtained by the Builder must be disclosed to the HRA, and must be subordinate to this
Agreement. The Builder must provide the HRA with an address for the holder of the Mortgage
for purposes of providing notices as may be required by this Agreement.
ARTICLE VIII.
EVENTS OF DEFAULT
Section 8.1. Events of Default Defined. The following shall be deemed Events of
Default under this Agreement and the term shall mean, whenever it is used in this Agreement,
unless the context otherwise provides, any one or more of the following events:
(a) Failure by the Builder to pay when due the payments required to be paid or
secured under any provision of this Agreement;
(b) Failure by the Builder to observe and substantially perform any covenant,
condition, obligation or agreement on its part to be observed or performed hereunder, including
the time for such performance;
(c) If the Builder shall admit in writing its inability to pay its debts generally as they
become due, or shall file a petition in bankruptcy, or shall make an assignment for the benefit of
its creditors, or shall consent to the appointment of a receiver of itself or of the whole or any
substantial part of the Property;
(d) If the Builder, on a petition in bankruptcy filed against it, be adjudicated as
bankrupt, or a court of competent jurisdiction shall enter an order or decree appointing, without
the consent of the Builder, a receiver of the Builder or of the whole or substantially all of its
property, or approve a petition filed against the Builder seeking reorganization or arrangement of
the Builder under the federal bankruptcy laws, and such adjudication, order or decree shall not be
vacated or set aside or stayed within 60 days from the date of entry thereof; or
(e) If the Development is in default under any Mortgage and has not entered into a
work-out agreement with the holder of the Mortgage.
Section 8.2. Remedies on Default. Whenever any Event of Default occurs, the HRA
may, in addition to any other remedies or rights given the HRA under this Agreement, take any
one or more of the following actions following written notice by the HRA to the Builder as
provided in Section 9.3 of this Agreement:
401253v8 CBR RC125-65
10
(a) Suspend its performance under this Agreement until it receives assurances from the
Builder, deemed reasonably adequate by the HRA, that the Builder will cure its default and
continue its performance under this Agreement;
(b) Cancel or rescind this Agreement;
(c) Exercise its right under Section 8.3;
(d) Withdraw all funds in the escrow account established in Section 5.1;
(e) Withhold the Certificate of Completion; or
(f) Take whatever action at law or in equity may appear necessary or desirable to the
HRA to enforce performance and observance of any obligation, agreement, or covenant of the
Builder under this Agreement; provided, however, that any exercise by the HRA of its rights or
remedies hereunder shall always be subject to and limited by, and shall not defeat, render invalid
or limit in any way (a) the lien of any Mortgage authorized by this Agreement and (b) any rights
or interest provided in this Agreement for the protection of the holders of a Mortgage; and
provided further that should any holder of a Mortgage succeed by foreclosure of the Mortgage or
deed in lieu thereof to the Builder’s interest in the Property, it shall, notwithstanding the
foregoing, be obligated to perform the obligations of the Builder under this Agreement to the
extent that the same have not therefore been performed by the Builder.
Section 8.3. Revesting Interest in HRA Upon Happening of Event of Default
Subsequent to Conveyance of Property to Builder. In the event that subsequent to the closing
or the sale of the Property to the Builder and prior to the issuance of the Certificate of
Completion:
(a) The Builder fails to begin construction of the Improvements in conformity with
this Agreement, and such failure is not due to Unavoidable Delays;
(b) The Builder, after commencement of the construction of the Improvements,
defaults in or violates obligations with respect to the construction of the Improvements, including
the nature and the date for the completion thereof, or abandons or substantially suspends
construction work, and such act or actions is not due to Unavoidable Delays;
(c) The Builder or successor in interest fails to pay real estate taxes or assessments on
the Property or any part thereof when due, or places thereon any encumbrance or lien
unauthorized by this Agreement, or suffers any levy or attachment to be made, or any supplier’s
or mechanic’s lien, or any other unauthorized encumbrance or lien to attach;
(d) There is, in violation of Article VII of this Agreement, any transfer of the Property
or any part thereof; or
(e) The Builder fails to comply with any of its covenants under this Agreement,
401253v8 CBR RC125-65
11
then the HRA shall have the right upon 30 days’ written notice to Builder and the Builder’s
failure to cure within such 30 days period, to re-enter and take possession of the Property and to
terminate and revest in the HRA the interest of the Builder in the Property; provided, however,
that such revestiture of title shall be subject to the lien of any prior encumbrance permitted under
this Agreement, or any right of a Homeowner pursuant to a valid Purchase Agreement authorized
by this Agreement.
Section 8.4. No Remedy Exclusive. No remedy herein conferred upon or reserved to
the HRA is intended to be exclusive of any other available remedy or remedies, but each and
every such remedy shall be cumulative and shall be in addition to every other remedy given
under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or
omission to exercise any right or power accruing upon any default shall impair any such right or
power or shall be construed to be a waiver thereof, but any such right and power may be
exercised from time to time and as often as may be deemed expedient. In order to entitle the
HRA or the Builder to exercise any remedy reserved to it, it shall not be necessary to give notice,
other than such notice as may be required in this Article VIII.
Section 8.5. No Additional Waiver Implied by One Waiver. In the event of the
occurrence of any Event of Default by either party, which Event of Default is thereafter waived
by the other party, such waiver shall be limited to the particular Event of Default so waived and
shall not be deemed to waive any other concurrent, previous or subsequent Event of Default.
ARTICLE IX.
ADDITIONAL PROVISIONS
Section 9.1. Conflict of Interests; Representatives Not Individually Liable. No HRA
officer who is authorized to take part in any manner in making this Agreement in his or her
official capacity shall voluntarily have a personal financial interest in this Agreement or benefit
financially there from. No member, official, or employee of the HRA shall be personally liable
to the Builder, or any successor in interest, for any Event of Default by the HRA or for any
amount which may become due to the Builder or successor or on any obligations under the terms
of this Agreement.
Section 9.2. Non-Discrimination. The provisions of Minnesota Statutes Section
181.59, which relate to civil rights and non-discrimination, and any affirmative action program of
the City shall be considered a part of this Agreement and binding on the Builder as though fully
set forth herein.
Section 9.3. Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand or other communication under this Agreement by either party to the
other shall be sufficiently given or delivered if it is sent by mail, postage prepared, return receipt
requested or delivered personally:
401253v8 CBR RC125-65
12
(a) As to the HRA:
Richfield HRA
Executive Director
6700 Portland Avenue South
Richfield, MN 55423
(b) As to the Builder:
Dustin Endres
Endres Custom Homes, Inc.
15561 Dunberry Way
Apple Valley, MN 55124
or at such other address with respect to either such party as that party may, from time to time,
designate in writing and forward to the other as provided in this Section 9.3.
Section 9.4. Counterparts. This Agreement may be simultaneously executed in any
number of counterparts, all of which shall constitute one and the same instrument.
Section 9.5. Extensions. Any extension to the Closing Date and/or extension to
Construction Completion Date that exceeds 6 months from the date agreed to in Section 3.7 and 4.3,
respectively, must be approved by the HRA Board. HRA staff is authorized to extend the Closing
Date to a date less than 6 months from the Closing Date agreed to in Section 3.7 and extend the
Construction Completion Date to a date less than 6 months from the Construction Completion Date
agreed to in Section 4.3.
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed
as of the day and year first above written.
[signature pages follow]
401253v8 CBR RC125-65
13
Signature Page for HRA
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
RICHFIELD, MINNESOTA
By _______________________________________
Its Chairperson
By _______________________________________
Its Executive Director
__________________________________________
STATE OF MINNESOTA )
) SS
COUNTY OF ______________ )
The foregoing instrument was acknowledged before me this __________ day of
____________________, 20_____, by , the Chairperson of the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota, a public body corporate
and politic under the laws of Minnesota, on behalf of the authority.
________________________________________________
Notary Public
STATE OF MINNESOTA )
) SS
COUNTY OF ______________ )
The foregoing instrument was acknowledged before me this __________ day of
____________________, 20_____, by , the Executive Director of the Housing
and Redevelopment Authority in and for the City of Richfield, Minnesota, a public body
corporate and politic under the laws of Minnesota, on behalf of the authority.
________________________________________________
Notary Public
401253v8 CBR RC125-65
14
Signature Page for Builder
Builder
By______________________________________
Its______________________________________
STATE OF MINNESOTA )
) SS
COUNTY OF ______________ )
The foregoing instrument was acknowledged before me this __________ day of
____________________, 20_____, by __________________________________________, the
______________________ of _______________________________________________, a
_________________________ under the laws of _____________________, on behalf of the
_____________________.
________________________________________________
Notary Public
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401253v8 CBR RC125-65
EXHIBIT A
FORM OF CERTIFICATE OF COMPLETION
The undersigned hereby certifies that ____________________________, has fully and
completely complied with its obligations under 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. ____________________ (the
“Contract”) with respect to the construction of the approved construction plans at
________________________, legally described as _____________________________ and is
released and forever discharged from its obligations under such Contract.
DATED: ___________________
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
RICHFIELD
By: __________________________________
Its: Executive Director
STATE OF MINNESOTA )
) SS
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this ____ day of
_______________, 20__, by _________________________ the 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:
Kennedy & Graven, Chartered
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
401253v8 CBR RC125-65
B-1
EXHIBIT B
PROGRAM GUIDELINES – LOT SALE PROGRAM
RICHFIELD REDISCOVERED
PROGRAM GUIDELINES
LOT SALE PROGRAM
REVISED: March 20, 2017
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401253v8 CBR RC125-65
PROGRAM OBJECTIVES ............................................................................................................................ 3
DEFINITIONS................................................................................................................................................ 3
PROGRAM BASICS ..................................................................................................................................... 4
APPLICATION REQUIREMENTS ................................................................................................................ 4
ADDITIONAL REQUIREMENTS .................................................................................................................. 5
HOUSE DESIGN AND SITE DEVELOPMENT REQUIREMENTS .............................................................. 6
New House Standards ............................................................................................................................ 6
Site Standards ......................................................................................................................................... 6
Construction Requirements .................................................................................................................. 7
General Standards .................................................................................................................................. 7
Green Community Concepts ................................................................................................................. 8
CITY REVIEW PROCEDURE ....................................................................................................................... 8
LOT SALE TO BUILDER/BUYER ................................................................................................................ 9
PROGRAM MARKETING ............................................................................................................................. 9
DATA PRIVACY .......................................................................................................................................... 10
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401253v8 CBR RC125-65
This document has been developed as a guidance tool for program administration. It should not be
interpreted as constituting any contractual agreement or liability by the City or Housing and
Redevelopment Authority (HRA). The HRA may modify or divert from the guidelines where it deems
appropriate.
I. Program Objectives
1. To remove substandard, functionally obsolete housing on scattered sites throughout the City
and replace with new, higher-valued housing.
2. To eliminate the blighting influence of substandard housing, thus improving residential
neighborhoods.
3. To alleviate the shortage of housing choices for families.
4. To facilitate the construction of larger three- to four-bedroom, owner-occupied homes
designed for families.
5. To facilitate the construction of multi-unit, owner-occupied homes designed to expand family
opportunities or to serve elderly residents.
These objectives will be achieved through the sale of lots by the Housing and Redevelopment Authority to
Builder/Buyer teams for the development of newly constructed homes.
II. Definitions
Applicant: An individual who submits an application for a Richfield Rediscovered lot. The Applicant may
be a Builder or the end Buyer. If the Applicant is a Builder, an end Buyer should be identified. If the
Applicant is the Buyer, the Applicant must submit a signed contract between the Builder and the Buyer to
build a home on the lot identified in the application.
Buyer: An individual(s) who will build, own and occupy a new housing unit in Richfield.
The Buyer will occupy the property and not offer it for rent. The Buyer may not also function as the Builder
on a Richfield Rediscovered project. The Buyer and Builder must be unrelated separate legal entities. A
speculative project by a Buyer may be considered if all other program requirements can be met.
However, neither the Buyer, the Buyer’s Builder or Builder’s subcontractors, or the Builder’s realty agents
may occupy or purchase the property.
Buyers, unless licensed in the trade specified, may not put any sweat equity into the construction of the
foundation, wall/roof framing, shingling, exterior work, electrical/plumbing/HVAC systems or interior
carpentry.
A Buyer, and all members of his/her household, is limited to building a home through the program no more
than once every seven years.
Builder: Licensed Contractor who has signed a contract with the Buyer to build a home on the lot identified
in the application.
Contract for Private Development: A contract between the HRA and the Builder or Buyer that establishes
the conditions under which the lot will be sold and the proposed house will be developed.
Green Community Concepts Plan: A written plan indicating how the proposed development will
incorporate green building features and concepts. Priority will be given to projects that incorporate green
building features.
HRA: Housing and Redevelopment Authority in and for the City of Richfield.
Lot List: A listing of available lots for sale. Information regarding the lot location, size and sale price is
provided.
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401253v8 CBR RC125-65
III. Program Basics
1. HRA publishes a list of available vacant lots for purchase including sale price and
development criteria.
2. Builder/Buyer team proposes a plan for a lot consistent with development criteria and program
requirements and makes an offer to purchase.
3. HRA may issue a Request for Proposals for a specific lot(s) with a specific submittal deadline.
HRA staff review all Proposals submitted by the deadline for consistency with development
criteria and program requirements. The Proposal that best meets the criteria and
requirements is selected to develop the lot.
4. HRA approves lot sale.
5. Lot is sold to Builder or Buyer.
6. Builder constructs new home.
7. Projects must be completed within one year of HRA approval of the project.
IV. Application Requirements
The following must be submitted for application to the program:
1. $550 application fee
An application fee must be paid at the time of application. This fee is non-refundable and
is not part of the lot price.
2. Application Form
3. Floor plans
The layout of all levels, including basement and unfinished space, must be provided.
4. Elevations
Elevations of all four sides of the house, including view of garage shall be provided.
Colored renderings may also be required.
5. Site plan
The site plan shall indicate the location of the new house, walkways and garage.
6. Landscaping plan
A landscaping plan must indicate the location and type of trees, shrubbery, flowers and
landscaping materials (e.g. rocks, mulch) and any existing trees to be preserved.
7. Detail of construction materials to be used on the project.
8. Green Community Concepts Plan
The plan should indicate what Green Community Concepts will be incorporated into the
project.
9. Construction timeline
Construction must be completed with one year of the purchase of the property.
10. Signed contract with Builder
11. Purchase agreement
If the Builder plans to purchase the lot, the application must include a valid purchase
agreement between the Buyer and the Builder for the lot to be developed.
12. Financial capability statement
A statement from a financial institution indicating willingness to provide sufficient
construction capital to complete the project must be provided.
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401253v8 CBR RC125-65
13. Builder References
a. Five previous customers
b. Three major suppliers, one being the construction supplier
c. Building inspectors from two cities where the Builder has constructed new housing
within the past three years
14. Proof of Builder’s Comprehensive General Liability with Property Damage Protection.
15. Proof of sufficient worker’s compensation insurance coverage by the Builder.
16. Written warranty program
To be provided to the Buyer, which guarantees at a minimum, warranted repairs as
required by Minnesota State Statute.
V. Additional Program Requirements
1. The Applicant is expected to meet with an architectural/design consultant prior to submitting an
application. A two-hour consultation is available through the HRA at a cost of $25 to the applicant.
See the City’s website (www.cityofrichfield.org) for more information. This requirement may be
waived if the applicant is using an architect for the project.
2. The site will be sold to the Builder or Buyer at the fair market value as appears on the Lot List.
The HRA will not accept offers for less than the established sale price.
3. A Contract for Private Development is signed by the HRA and the Builder or the Buyer. The
Contract is a standard form which includes conditions for acquisition and development of the
property. The Contract will establish a minimum required end-value for the property based on
construction estimates provided by the applicant. The Builder or Buyer will be expected to agree
to the terms of the Contract before the application can be scheduled on the HRA agenda.
4. The lot can be sold to either the Builder or the Buyer. If the lot is sold to the Builder, the Builder
will pay cash for the lot at closing and submit a Letter of Credit or cash escrow for $10,000. The
Letter of Credit must be from a financial institution incorporated in the Twin Cities metropolitan
area. The cash escrow will be held in a non-interest bearing account. The Letter of Credit or
cash escrow will be released once the construction and landscape work are completed and a final
Certificate of Occupancy is issued.
5. If the lot is sold to the Builder and the Builder fails to complete construction as approved by the
HRA, the Letter of Credit or cash escrow may be drawn upon by the HRA. In addition, the
Contract for Private Development will contain a reverter provision, which will enable the HRA to
reclaim ownership of the property in the event of a default in the Contract. In the event that the
Builder fails to complete construction, the HRA may exercise its rights under the reverter
provision, as well as draw upon the Letter of Credit or cash escrow.
6. If the lot is sold to the Buyer, the Buyer will pay cash for the lot at closing and a $10,000 mortgage
in favor of the HRA will be filed on the property. The mortgage will be in first position. The HRA
may consider subordinating its interest in appropriate cases.
7. If the lot is sold to the Buyer and the Buyer fails to complete construction as approved by the HRA,
the HRA may exercise its rights provided in the mortgage.
8. A Buyer, and all members of his/her household, is limited to purchasing no more than one lot
every seven years.
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401253v8 CBR RC125-65
VI. House Design and Site Development Requirements
The development of all sites shall meet the development criteria listed below, as reviewed and approved
by the HRA. To maximize the development of a given lot, the HRA reserves the right to explore all
development options without obligating the HRA to support any specific proposal, idea or solicitation.
Housing design is a critical element of the program. Siding materials, exterior façade presentation, roof,
window, siding and building line variability, finished landscape, interior space function and use are all
important issues of design to the HRA. The design requirements were created to ensure that the homes
built on the HRA-sold lots blend in with the surrounding neighborhood and respond to the specific
concerns of the HRA.
All new houses built under the Richfield Rediscovered Program must meet the requirements of the City’s
Zoning Code and additional criteria, as listed in this document.
A. New House Standards
1. New dwelling must be owner-occupied.
2. Three finished bedrooms are required, at a minim um.
3. Two finished bathrooms are required, at a minimum.
4. Two-car garage is required, at a minimum.
5. A full basement is required, unless the selected design results in a split-level or a garden-level
type of basement. In the case of an “accessible” house, a basement may be omitted if it would
otherwise prohibit accessible design elements.
B. Site Standards
1. After construction, the site must be fully landscaped, including plantings around the foundation.
The entire grounds shall be landscaped and be aesthetically pleasing in all seasons. Land forms
and plant materials shall be used to define the site and blend neatly with adjoining properties.
Specific lot line blending requirements may be required, as appropriate, for specific sites.
At a minimum, the applicant must meet the “Landscaping and Screening Requirements” in the
City’s Zoning Code under Section 544.03, Subd. 4, General landscaping requirements and Subd.
5, Residential sites. The code is available on the City’s website: http://www.ci.richfield.mn.us
To the greatest extent possible, existing trees should be preserved. Any trees removed must be
replaced (they do not have to be the same species or in the same location) and should be
labeled on the required landscape plan.
2. Utility meters shall be screened from street view and locations must be specified on plans.
3. Site drainage should be accommodated on the site so that water is directed away from the new
home and the neighboring properties. Neighboring properties must not be disturbed by the
creation of drainage swales. Specific storm water management requirements may be required,
as appropriate, including the addition of gutters or on-site management for specific sites.
Construction and the finished structure must not have a detrimental impact on storm water
drainage patterns in the neighborhood.
4. All air conditioning units must be located in the rear yard of the house, or as approved by the
HRA.
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C. Construction Requirements
1. Existing trees identified on the landscape plan as being preserved, must be protected during
construction. A tree wrap with board reinforcements shall be used on trees directly adjacent to
active grading and construction areas. Damaged or destroyed trees must be replaced.
2. The construction site, neighboring properties and adjacent public streets shall be kept free of
construction debris at all times.
3. No construction workers, construction equipment or construction material shall encroach upon
neighboring properties.
4. The property shall have a new sanitary service line installed to the City sanitary sewer main
consisting of schedule 40 PVC or equivalent. If there is an existing 6" sewer stub at the property
line, it must be lined with 4" schedule 40 PVC or equivalent to the City’s sanitary main, and it
must include a "donut" at the end with cement.
The line must be televised after installation to ensure the following:
1. There are no obstructions in the line.
2. The PVC liner is not protruding into the City’s sanitary sewer main line.
D. General Standards
1. The value of the new home must meet or exceed the minimum value specified in the Contract for
Private Redevelopment.
2. All homes in the Richfield Rediscovered Program must be stick-built or high-quality modular, new
construction.
3. Exterior materials (siding, soffit, doors and windows) should be low-maintenance and durable.
Brick, aluminum, vinyl and fiber cement siding are preferred. Natural cedar lap is acceptable if
properly stained or painted. Hardboard panels or hardboard lap siding are prohibited. Roof
valleys must have metal valleys and not be woven.
4. Unit height and mass of the new house shall be compatible with the scale of the surrounding
homes in the neighborhood.
5. Plans must present a balanced and pleasing distribution of wall, door and window areas from all
views.
6. The dominance of the garage door must be minimized through placement, architectural detail,
door design and utilization and design of windows. Garages, where the garage door faces the
street, shall not be located closer to the front lot line than the foremost facade of the principal
building facing the front property line. Garage sidewalls that face the street should appear to
contain habitable space. This can be accomplished by incorporating windows and other design
elements into the garage wall that are in character with the remainder of the dwelling. For lots
that have alley access, the garage should be oriented to access the alley.
7. All building plans must have been prepared in consultation with an architect or qualified
draftsperson. All requirements by the Building Inspections Division must be met.
8. All Richfield Rediscovered houses must meet or exceed Minnesota Energy Code requirements.
9. All new homes shall be built to provide high quality sound insulation. Recommendations for sound
insulation measures may be provided on a site-by-site basis. All construction must conform to
sound attenuation building standards as required by Zoning Ordinance Section 541.19 for
properties located within the 2007 60-62 DNL Contour and 2007 63 or greater DNL contours.
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401253v8 CBR RC125-65
9. If a variance is required to construct the proposed development, the HRA may, at its sole
discretion, choose to reject the application.
10. If the HRA accepts an application that needs a variance(s), sale of the property will be contingent
upon the applicant obtaining the necessary variance(s). The Applicant is responsible for applying
for the variance(s) at its own expense. The HRA, as owner of the property, will, however,
cooperate with the application.
E. Green Community Concepts
Priority will be given to projects incorporating the green community concepts listed below. Any
concepts the applicant would like considered during the application process should be explained
in a written plan submitted with the application. A $5,000 rebate will be provided to the Applicant
for projects that obtain certification through LEED for Homes, Minnesota GreenStar or Minnesota
Green Communities.
1. Protect and conserve water and soil. To reduce water consumption, consider the use of
water-conserving appliances, fixtures, and landscaping. Steps should be taken to minimize
the loss of soil and sediment during construction and occupancy to reduce storm-water
sediment and air pollution.
2. Minimize energy consumption. Reduce energy consumption by taking advantage of natural
heating, cooling and day lighting, and by using energy-efficient appliances, equipment and
lighting.
3. Enhance indoor environmental quality. Use non-toxic materials, ventilation and exhaust
systems, and moisture control products and systems.
4. Use environmentally-preferable materials and resources. Use locally-produced, salvaged
and/or manufactured materials, products with recycled content or from renewable sources,
recyclable or reusable materials, and low-VOC-emitting materials.
5. Reduce waste. Reduce and manage wastes generated during the construction process and
operation of buildings. If demolition occurs, sort and recycle leftover materials and debris.
VII. City Review Procedure
1. Applicant reviews proposed project with HRA staff before plans are finalized.
2. Applicant submits application, plans, and application fee at least 45 days prior to the HRA
meeting.
3. An application is considered to be received when delivered personally to HRA staff in a pre-
arranged meeting. If more than one application is submitted for a lot within five-working days, all
applications will be reviewed, and the application that best meets the program guidelines will be
selected. The application fee will be returned to the Applicant whose proposal was not
selected.Following this five-day period, the lot will be considered reserved by the selected
application and no additional applications will be accepted for the proposed lot while the
application is being processed.
4. If an application is determined to be incomplete, the applicant will have 30 days to submit a
complete application. If a complete application is not received within 30 days, the application will
be rejected and the lot will be made available for new applications.
5. HRA staff review application to ensure conformance with House Design and Site Development
Requirements.
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6. HRA staff may reject or accept an application at its sole discretion.
7. HRA staff may choose to issue a Request for Proposals (RFP) for a lot. In this case, Staff issues
an RFP, giving a specific time period within which proposals may be submitted. HRA staff review
all proposals for consistency with development criteria and program requirements. The proposal
that best meets the criteria and requirements is selected to develop the lot. The applicant will have
30 days to submit a complete application. If a complete application is not received within 30 days,
the application will be rejected. Staff may elect to award the lot to another submitted proposal or
solicit additional proposals.
8. The Builder or Buyer executes a Contract for Private Redevelopment.
9. An application is determined to be complete at least three weeks prior to the HRA meeting.
10. HRA staff publishes a legal notice of the public hearing and prepares a report and
recommendation for the HRA.
11. HRA reviews application, conducts a public hearing, and takes action at the HRA meeting.
12. If approved, the Contract for Private Redevelopment is executed by the HRA.
VIII. Lot Sale to Builder or Buyer
1. Upon approval of the application by the HRA, a closing will be scheduled between the HRA and
the Builder or Buyer.
2. The HRA will prepare all statements, affidavits, documents, and general release forms required
for closing.
3. The Builder applies for a building permit prior to closing. The Builder is responsible for acquiring
the necessary building permits with the City of Richfield Building Inspections Division. If changes
to the plans are required by the Inspections Division, the applicant must notify HRA staff.
4. The Applicant provides evidence to HRA staff that all requirements to proceed with construction,
as determined in the Contract for Private Redevelopment, have been met.
5. The HRA conveys the property to the Builder or Buyer by Quit Claim Deed. The site will be sold to
the Builder or Buyer at the fair market value as appears on the Lot List.
6. At closing with the Builder, the Builder provides a Letter of Credit or cash escrow for $10,000 to
the HRA.
7. At closing with the Buyer, the Buyer signs a mortgage and promissory note for $10,000 in favor of
the HRA.
8. Upon completion of the project, the Letter of Credit or cash escrow is released to the Builder or
the Buyer’s mortgage is released. A Certificate of Completion is executed by the HRA, releasing
the obligations of the Contract for Private Redevelopment.
IX. Program Marketing
Richfield Rediscovered program marketing is entirely at the discretion of the HRA. It may include the
following:
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401253v8 CBR RC125-65
1. Buyer Solicitation. The HRA may market the program to potential Buyers through promotional
articles, direct mail, the Internet, or other methods as deemed appropriate. Buyers may be any
financially capable individual or household, including first-time buyers, move-up buyers or empty-
nesters.
2. Public Promotion.
a. The HRA will periodically provide information about the program through articles in city
publications, on the City’s web site, on the Community Cable channel, or via press
releases to promote community awareness.
b. A public open house may be held to provide an opportunity for residents and other
interested parties to collectively view the finished homes. The Parade of Homes Fall
Showcase and Spring Preview may also accomplish this.
c. Photos will be taken of finished homes and may be used to promote the program.
A program information package will be mailed to all interested participants. The information packet may
include the following:
1. Lot List
2. Richfield Rediscovered Lot Sale Procedural Guidelines
3. Application Form
4. Sample Contract for Private Redevelopment
X. Data Privacy
The HRA is subject to Minnesota Statutes Chapter 13 (the “Minnesota Government Data Practices Act”).
Under the Minnesota Government Data Practices Act, the names and addresses of applicants for or
recipients of assistance under this program and the amount of assistance received under this program are
public data. All other financial information submitted to the HRA for purposes of the program application is
considered private data.
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401253v8 CBR RC125-65
EXHIBIT C
QUIT CLAIM DEED
STATE DEED TAX DUE HEREON: $_______
Date: ____________________
FOR VALUABLE CONSIDERATION, 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,
Grantor, hereby conveys and quit claims to _____________________, a _______________
under the laws of the State of ____________, Grantee, real property in Hennepin County,
Minnesota, described as follows:
, according to the map or plat thereof on file or of record in the office of the Hennepin County
Recorder.
This deed is subject to that certain Contract for Private Development between Grantor and
Grantee, dated ___, 20__ (the “Contract”), recorded ___, 20__, in the office of the Hennepin
County Recorder/Registrar of Titles as Document No. ______________. The Contract
provides that the Grantee’s rights and interest in the real property described above are subject to the
Grantor’s right to re-enter and revest in Grantor title to the Property under conditions specified
therein, including but not limited to termination of the Grantor’s right to re-enter and revest upon
issuance of a Certificate of Completion as defined in the Agreement.
(if more space is needed, continue on back)
together with all hereditaments and appurtenances.
The Seller certifies that the seller does not know of any wells on the described real property.
A well disclosure certificate accompanies this document.
I am familiar with the property described in this instrument and I certify that the status and
number of wells on the described real property have not changed since the last previously
filed well disclosure certificate.
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD
Affix Deed Tax Stamp Here
By
Its Chairperson
By
Its Executive Director
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401253v8 CBR RC125-65
NOTARIAL STAMP OR SEAL (OR OTHER TITLE OR RAK)
NOTARIAL STAMP OR SEAL (OR OTHER TITLE OR RAK)
STATE OF MINNESOTA
} ss.
COUNTY OF HENNEPIN
The foregoing was acknowledged before me this ____ day of _______, 20___, by
_____________, the Chairperson of the Housing and Redevelopment Authority in and for the
City of Richfield, a public body corporate and politic under the laws of Minnesota, on behalf of
the corporation, Grantor.
____________________________________
SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT
STATE OF MINNESOTA
} ss.
COUNTY OF HENNEPIN
The foregoing was acknowledged before me this ____________ day of _______, 20__,
by _____________, the Executive Director, of 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 corporation, Grantor.
____________________________________
SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT
Check here if part or all of the land is Registered (Torrens)
Tax Statements for the real property described in this
instrument should be sent to (include name and
address of Grantee):
This instrument drafted by:
Kennedy & Graven, Chartered
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
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401253v8 CBR RC125-65
EXHIBIT D
WELL DISCLOSURE
The Seller certifies that the seller does not know of any wells on the described real property.
A well disclosure certificate accompanies this document. [form attached]
X The status and number of wells on the described real property have not changed since the last
previously filed well disclosure certificate.
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401253v8 CBR RC125-65
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401253v8 CBR RC125-65
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401253v8 CBR RC125-65
401253v8 CBR RC125-65
CONTRACT FOR PRIVATE DEVELOPMENT
Between
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD
and
Endres Custom Homes, Inc.
for property located at
6420 16th Avenue South
This Instrument Drafted by:
The Housing and Redevelopment Authority
in and for the City of Richfield
6700 Portland Avenue South
Richfield, Minnesota 55423
Telephone: (612) 861-9760
401253v8 CBR RC125-65
1
CONTRACT FOR PRIVATE DEVELOPMENT
THIS AGREEMENT, made and entered into as of this ______ day of ________, 20___,
by and between 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, having its principal
office at 6700 Portland Avenue, Richfield, Minnesota (HRA) and Endres Custom Homes, Inc., a
Minnesota Corporation (Builder).
WITNESSETH:
WHEREAS, the City of Richfield (City) and the HRA have previously created and
established a Redevelopment Project (Project) pursuant to the authority granted in Minnesota
Statutes, Sections 469.001 through 469.047 (collectively, the Act); and
WHEREAS, pursuant to the Act, the City and the HRA have previously adopted a
redevelopment plan for the Project (Redevelopment Plan); and
WHEREAS, in order to achieve the objectives of the Redevelopment Plan and
particularly to make specified land in the Project available for development by private enterprise
for and in accordance with the Redevelopment Plan, the HRA has determined to provide
substantial aid and assistance to finance development costs in the Project; and
WHEREAS, the Builder has proposed a development as hereinafter defined within the
Project which the HRA has determined will promote and carry out the objectives for which the
Project has been undertaken, will assist in carrying out the obligations of the Redevelopment
Plan, will be in the vital best interests of the City and the health, safety and welfare of its
residents and is in accord with the public purposes and provisions of the applicable state and
local laws and requirements under which development in the Project has been undertaken and is
being assisted.
NOW, THEREFORE, in consideration of the mutual covenants and obligation of the
HRA and the Builder, each party does hereby represent, covenant and agree with the other as
follows:
ARTICLE I.
DEFINITIONS, EXHIBITS, RULES OF INTERPRETATION
Section 1.1. Definitions. In this Agreement, the following terms have the meaning
given below unless the context clearly requires otherwise:
Building Plans. Detailed plans for the Improvements to be constructed on the Property,
as required by the local building official for issuance of a building permit.
401253v8 CBR RC125-65
2
Construction Plans. The construction plans approved by the HRA pursuant to Section
4.1 of this Agreement. The Construction Plans include a schedule for construction of the
Improvements, preliminary plans and schematics of the Improvements to be constructed, and a
landscaping plan.
Development. The Property and the Improvements to be constructed thereon according
to the Construction Plans approved by the HRA.
Event of Default. Event of Default has the meaning given such term in Section 8.1.
Guidelines. The Richfield Rediscovered Program Guidelines Lot Sale Program, revised
March 20, 2017, and attached as Exhibit B to this Agreement.
Homeowner. The individuals purchasing the Property from Builder and who will be
living in the home following purchase.
Improvements. Each and all of the structures and site improvements constructed on the
Property by the Builder, as specified in the Construction Plans to be approved by the HRA.
Minimum Market Value. $309,000, which is the minimum market value for the land
and Improvements as confirmed by the Hennepin County Assessor.
Mortgage. A mortgage obtained by the Builder from a third party lender in accordance
with Section 7.2 of this Agreement.
Property. The real property legally described as:
Lot 6, Block 11, Nokomis Gardens Rearrangement of Blocks 7-11, and 12-, Girard
Parkview, Hennepin County, Minnesota
Located on land having a street address of:
6420 16th Avenue South
Unavoidable Delays. Delays which are the direct result of strikes, labor troubles, fire or
other casualty to the Improvements, litigation commenced by third parties which results in delays
or acts of any federal, state or local government, except those contemplated by this Agreement,
which are beyond the control of the Builder.
Section 1.2. Exhibits. The following Exhibits are attached to and by reference made a
part of this Agreement:
A. Form of Certificate of Completion
B. Program Guidelines – Lot Sale Program
401253v8 CBR RC125-65
3
C. Form of Quit Claim Deed
D. Well Disclosure
Section 1.3. Rules of Interpretation.
(a) This Agreement shall be interpreted in accordance with and governed by the laws
of the State of Minnesota.
(b) The words “herein” and “hereof” and words of similar import, without reference
to any particular section or subdivision refer to this Agreement as a whole rather than any
particular section or subdivision hereof.
(c) References herein to any particular section or subdivision hereof are to the section
or subdivision of this Agreement as originally executed.
(d) Any titles of the several parts, articles and sections of this Agreement are inserted
for convenience and reference only and shall be disregarded in construing or interpreting any of
its provisions.
ARTICLE II.
REPRESENTATIONS AND UNDERTAKINGS
Section 2.1. By the Builder. The Builder makes the following representations and
undertakings:
(a) The Builder has the legal authority and power to enter into this Agreement and has
duly authorized the execution, delivery and performance of this Agreement;
(b) The Builder has the necessary equity capital or has obtained commitments for
financing necessary for construction of the Improvements;
(c) The Builder will construct the Improvements in accordance with the terms of this
Agreement and all local, state and federal laws and regulations;
(d) The Builder will obtain, in a timely manner, all required permits, licenses and
approvals, and will meet, in a timely manner, the requirements of all local, state and federal laws
and regulations which must be obtained or met before the Improvements may be constructed;
(e) The plans for the Improvements have been prepared by a qualified draftsperson or
architect; and
(f) The Builder has read and understands the Guidelines and agrees to be bound by
them.
401253v8 CBR RC125-65
4
Section 2.2. By the HRA. The HRA makes the following representations as the basis
for the undertaking on its part herein contained:
(a) The HRA is authorized by law to enter into this Agreement and to carry out its
obligations hereunder; and
(b) The HRA will, in a timely manner, subject to all notification requirements, review
and act upon all submittals and applications of the Builder and will cooperate with the efforts of
the Builder to secure the granting of any permit, license, or other approval required to allow the
construction of the Improvements.
ARTICLE III.
ACQUISITION OF PROPERTY; CONVEYANCE TO BUILDER
Section 3.1. Purchase of Property by Builder. The HRA agrees to sell the Property to
Builder and the Builder agrees to purchase the Property from the HRA in an “as-is” condition.
The sale of the Property is contingent upon the Builder providing the HRA with evidence
satisfactory to the HRA that Builder has entered into a binding legal commitment, in the form of
a Purchase Agreement for the resale of the Property to a Homeowner following completion of the
Improvements. The HRA agrees to convey the Property to the Builder by Quit Claim Deed in the
general form of Exhibit C. The HRA’s deed to the Builder will contain the right of reverter
required in Section 8.3. The purchase price for the Property, payable at Closing, will be $35,240
(“Purchase Price”).
Section 3.2. Title and Examination. As soon as reasonably possible after execution of
this Contract for Private Development by both parties,
(a) HRA shall surrender any abstract of title and a copy of any owner’s title insurance
policy for the property, if in HRA’s possession or control, to Builder or to Builder’s designated
title service provider; and
(b) Builder shall obtain the title evidence determined necessary or desirable by
Builder or Builder’s lender, including but not limited to title searches, title examinations,
abstracting, a title insurance commitment or an attorney’s title opinion, at Builder’s selection and
cost, and provide a copy to the HRA.
The Builder shall have 20 days from the date it receives such title evidence to raise any
objections to title it may have. Objections not made within such time will be deemed waived.
The HRA shall have 90 days from the date of such objection to effect a cure; provided, however,
that the HRA shall have no obligation to cure any objections, and may inform Builder of such.
The Builder may then elect to close notwithstanding the uncured objections or declare this
Agreement null and void, and the parties will thereby be released from any further obligation
hereunder.
401253v8 CBR RC125-65
5
Section 3.3. Taxes and Special Assessments. Real estate taxes and installments of
special assessments will be prorated between the HRA and Builder as of the date of closing.
Section 3.4. Soil Conditions and Hazardous Wastes. The Builder acknowledges that
the HRA makes no representations or warranties as to the conditions of the soils on the Property,
its fitness for the construction of improvements or any other purpose for which the Builder may
use the Property, or regarding the presence of hazardous wastes on the Property. The HRA will
allow reasonable access to the Property for the Builder to conduct such tests regarding soils
conditions and hazardous wastes as the Buyer may desire. Permission to enter the Property to
conduct such tests must be given in writing under reasonable terms and conditions established by
the HRA.
Section 3.5. Site Clearance. The HRA will be responsible for clearance of all buildings
as required to prepare the Property for development. All other site preparation is the
responsibility of Builder. Builder will comply with all of the provisions of the Guidelines
relating to tree protection, preservation and replacement.
Section 3.6. Other Preconditions to Closing. Closing may not take place until the
HRA is satisfied that the Project is in all respects in full compliance with the provisions of the
Guidelines contained in Exhibit B. It is anticipated that the Builder will involve the Homeowner
in the various activities required under the Guidelines so that the Homeowner will have an
opportunity to contribute suggestions concerning development of the Property.
Section 3.7. Closing. Closing must take place March 1, 2018, (“Closing Date”) or such
other date as may be agreed to by the Builder and HRA in writing. At Closing, the Builder will
provide the HRA with a a cash deposit for the escrow account established pursuant to Section
5.1, in addition to the Purchase Price.
Section 3.8. Closing Costs. The Builder will pay: (a) the closing fees charged by its title
insurance company or other closing agent, if any, utilized to close the transaction for
Builder; (b) title services chosen by Builder pursuant to Section 3.2 above, including the premium for
title insurance policy, if any, and (c) the recording fees for the Contract for Private Development and
the deed transferring title to the Builder. HRA will pay all other fees normally paid by sellers,
including (a) any transfer taxes, and (b) fees and charges related to the filing of any instrument
required to make title marketable. Each party shall pay its own attorney fees.
Section 3.9. Sewer and Water. HRA does not warrant that city water and sewer is
available.
Section 3.10. ISTS Disclosure. HRA is not aware of any individual sewage treatment
system on the property. Buyer is responsible for all costs of removing any individual sewage
treatment system that may be discovered on the Property.
Section 3.11. Well Disclosure. HRA’s knowledge of wells on the Property is disclosed
in Exhibit D.
401253v8 CBR RC125-65
6
ARTICLE IV.
CONSTRUCTION OF IMPROVEMENTS
Section 4.1. Construction of Improvements. The Builder shall construct the
Improvements on the Property in accordance with the Guidelines and the Construction Plans,
shall cause the Improvements to meet or exceed the Minimum Market Value specified in Section
1.1, and shall maintain, preserve and keep the Improvements in good repair and condition. The
Builder shall provide his or her proposed construction plans to the HRA for review; if the
proposed construction plans are in conformity with this Agreement and the Guidelines, the HRA
will approve the Construction Plans following review and comment by the Homeowner.
Section 4.2. Construction Plans. No building permit will be issued by the City unless
the Building Plans are in conformity with the Guidelines, the Construction Plans, the Builder’s
Minimum Market Value, other requirements contained in this Agreement, and all local, state and
federal regulations. The Builder shall provide the HRA with a set of Building Plans to be used in
connection with any application for a building permit. The HRA shall, within 25 days of receipt
of the Building Plans review the same to determine whether the foregoing requirements have
been met. If the HRA determines such Building Plans to be deficient, it shall notify the Builder
in writing stating the deficiencies and the steps necessary for correction. Issuance of the building
permit by the City shall be a conclusive determination that the Building Plans have been
approved and shall satisfy the provisions of this Section 4.2.
Section 4.3. Schedule of Construction. Subject to Unavoidable Delays, construction of
the Improvements shall be completed prior to September 1, 2018 (“Construction Completion
Date”). All construction shall be in conformity with the approved Construction Plans and the
Guidelines. Periodically during construction the Builder shall make reports in such detail as may
reasonably be requested by the HRA concerning the actual progress of construction. If at any
time prior to completion of construction the HRA has cause to believe that the Builder will be
unable to complete construction of the Improvements in the time permitted by this Section 4.3, it
may notify the Builder and demand assurances from the Builder regarding the Builder’s
construction schedule. If such assurances are not forthcoming or are deemed by the HRA at its
sole discretion to be inadequate, the HRA may declare an Event of Default and may avail itself of
any of the remedies specified in Section 8.2 of this Agreement.
Section 4.4. Certificate of Completion. After notification by the Builder of completion
of construction of the Improvements, the HRA shall inspect the construction to determine
whether the Improvements have been completed in accordance with the Construction Plans and
the terms of this Agreement, including the date of the completion thereof. In the event that the
HRA is satisfied with the construction, and upon closing on the sale of the Property to the
Homeowner, the HRA shall furnish the Builder with a Certificate of Completion in the form
attached hereto as Exhibit A. Such certification by the HRA shall be a conclusive determination
of satisfaction and termination of the agreements and covenants in this Agreement. Issuance of
the Certificate of Completion shall also serve as a satisfaction of any obligation of Builder
401253v8 CBR RC125-65
7
secured by the escrow account established under Section 5.1, and the cash in the escrow account
will be released to the Builder. At the time a Certificate of Completion is issued, the HRA will
also provide Builder with a $5,000 cash rebate if Builder has obtained Green Community
Concepts certification through LEED for Homes, Minnesota GreenStar, Minnesota Green
Communities or Minnesota Green Path.
If the HRA shall refuse or fail to provide certification in accordance with the provisions
of this Section 4.4, the HRA shall within 15 days of such notification provide the Builder with a
written statement, indicating in adequate detail in what respects the Builder has failed to
complete the Improvements in accordance with the provisions of this Agreement necessary, in
the opinion of the HRA, for the Builder to take or perform in order to obtain such certification.
Section 4.5. Failure to Construct. In the event that construction of the Improvements is
not completed as provided in Section 4.3 of this Agreement, an Event of Default shall be deemed
to have occurred, and the HRA may proceed with its remedies under Section 8.2.
ARTICLE V.
REDEVELOPMENT ASSISTANCE
Section 5.1. Establishment of Cash Escrow. Builder acknowledges that although it is
purchasing the Property at its fair market value as raw land, the HRA has incurred significant
costs in acquiring and preparing the Property for development by Builder. At Closing, Builder
will deliver to the HRA $10,000 to be placed in a non-interest bearing escrow account pursuant
to the Escrow Agreement, dated as of the date hereof, between Builder and HRA. The obligation
to pay the $10,000 to the HRA will be forgiven, and the cash in the escrow account will be
returned to Builder if: (i) the Builder receives a Certificate of Completion; and (ii) the Builder is
not otherwise in default of any of its obligations hereunder. If such have not occurred, an Event
of Default shall be deemed to have occurred and the HRA may exercise its remedies under
Section 8.2. In certain circumstances, after construction is complete, the Builder or Buyer may be
required to deposit another cash escrow with the planning department of the City for incomplete
improvements. In these cases, following the HRA’s release of the cash escrow, the cash escrow
will be transferred to the City’s planning department for such purpose. The terms of the escrow
will be set forth in an Escrow Agreement between the HRA and the Builder or Buyer.
ARTICLE VI.
FINANCING
Section 6.1. Financing. HRA acknowledges that Builder has submitted evidence of
financing for the Improvements in compliance with the provisions of Section 2.1(b) of this
Agreement. Builder must notify HRA immediately of any changes to or withdrawal of the
approved financing, HRA shall have 10 days to approve or disapprove changes in financing. If
the HRA rejects a change in the approved financing or if the approved financing is withdrawn,
the Builder shall have 30 days or such additional period of time as the Builder may reasonably
401253v8 CBR RC125-65
8
require from the date of the HRA’s notification to submit evidence of financing satisfactory to
the HRA. If the Builder fails to submit such evidence or fails to use due diligence in pursuing
financing, the HRA may terminate this Agreement and both parties shall be released from any
further obligation or liability hereunder. Closing shall not take place until Builder has provided
HRA with acceptable evidence of financing for construction of the Improvements.
Section 6.2. Copy of Notice of Default to Lender. Whenever the HRA shall deliver
any notice or demand to the Builder with respect to any Event of Default by the Builder in its
obligations or covenants under this Agreement, the HRA shall at the same time forward a copy of
such notice or demand to each holder of any Mortgage authorized by the Agreement at the last
address of such holder shown in the records of the HRA.
Section 6.3. Subordination. In order to facilitate obtaining financing for the
construction of the Improvements by the Builder, the HRA may, in its sole and exclusive
discretion, agree to modify this Agreement in the manner and to the extent the HRA deems
reasonable, upon request by the financial institution and the Builder.
ARTICLE VII.
PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER
Section 7.1. Representation as to Redevelopment. The Builder represents and agrees
that its undertakings pursuant to the Agreement, are for the purpose of development of the
Property and not for speculation in land holding. The Builder further recognizes that, in view of
the importance of the Development to the general welfare of Richfield and the substantial
financing and other public aids that have been made available by the HRA for the purpose of
making the Development possible, the qualification and identity of the Builder are of particular
concern to the HRA. The Builder further recognizes that it is because of such qualifications and
identity that the HRA is entering into this Agreement, and, in so doing, is further willing to rely
on the representations and undertakings of the Builder for the faithful performance of all
undertakings and covenants agreed by the Builder to be performed.
Section 7.2. Prohibition Against Transfer of Property and Assignment of
Agreement. For the reasons set out in Section 7.1 of this Agreement, the Builder represents and
agrees as follows:
(a) Except as specifically allowed by this section, Builder has not made or created,
and, prior to the issuance of the Certificate of Completion, Builder will not make or create, or
suffer to be made or created, any total or partial sale, assignment, conveyance, or any trust in
respect to this Agreement or the Property or any part thereof or any interest therein, or any
contract or agreement to do any of the same, without the prior written approval of the HRA.
(b) This provision shall not be deemed as preventing the Builder from entering into a
Purchase Agreement for the sale of the Property to a Homeowner.
401253v8 CBR RC125-65
9
(c) This provision does not prohibit conveyances that are only by way of security for,
and only for the purpose of obtaining financing necessary to enable the Builder or any successor
in interest to the Property, or any part thereof, to perform its obligations with respect to the
Development under this Agreement, and any other purpose authorized by this Agreement. Any
Mortgage obtained by the Builder must be disclosed to the HRA, and must be subordinate to this
Agreement. The Builder must provide the HRA with an address for the holder of the Mortgage
for purposes of providing notices as may be required by this Agreement.
ARTICLE VIII.
EVENTS OF DEFAULT
Section 8.1. Events of Default Defined. The following shall be deemed Events of
Default under this Agreement and the term shall mean, whenever it is used in this Agreement,
unless the context otherwise provides, any one or more of the following events:
(a) Failure by the Builder to pay when due the payments required to be paid or
secured under any provision of this Agreement;
(b) Failure by the Builder to observe and substantially perform any covenant,
condition, obligation or agreement on its part to be observed or performed hereunder, including
the time for such performance;
(c) If the Builder shall admit in writing its inability to pay its debts generally as they
become due, or shall file a petition in bankruptcy, or shall make an assignment for the benefit of
its creditors, or shall consent to the appointment of a receiver of itself or of the whole or any
substantial part of the Property;
(d) If the Builder, on a petition in bankruptcy filed against it, be adjudicated as
bankrupt, or a court of competent jurisdiction shall enter an order or decree appointing, without
the consent of the Builder, a receiver of the Builder or of the whole or substantially all of its
property, or approve a petition filed against the Builder seeking reorganization or arrangement of
the Builder under the federal bankruptcy laws, and such adjudication, order or decree shall not be
vacated or set aside or stayed within 60 days from the date of entry thereof; or
(e) If the Development is in default under any Mortgage and has not entered into a
work-out agreement with the holder of the Mortgage.
Section 8.2. Remedies on Default. Whenever any Event of Default occurs, the HRA
may, in addition to any other remedies or rights given the HRA under this Agreement, take any
one or more of the following actions following written notice by the HRA to the Builder as
provided in Section 9.3 of this Agreement:
401253v8 CBR RC125-65
10
(a) Suspend its performance under this Agreement until it receives assurances from the
Builder, deemed reasonably adequate by the HRA, that the Builder will cure its default and
continue its performance under this Agreement;
(b) Cancel or rescind this Agreement;
(c) Exercise its right under Section 8.3;
(d) Withdraw all funds in the escrow account established in Section 5.1;
(e) Withhold the Certificate of Completion; or
(f) Take whatever action at law or in equity may appear necessary or desirable to the
HRA to enforce performance and observance of any obligation, agreement, or covenant of the
Builder under this Agreement; provided, however, that any exercise by the HRA of its rights or
remedies hereunder shall always be subject to and limited by, and shall not defeat, render invalid
or limit in any way (a) the lien of any Mortgage authorized by this Agreement and (b) any rights
or interest provided in this Agreement for the protection of the holders of a Mortgage; and
provided further that should any holder of a Mortgage succeed by foreclosure of the Mortgage or
deed in lieu thereof to the Builder’s interest in the Property, it shall, notwithstanding the
foregoing, be obligated to perform the obligations of the Builder under this Agreement to the
extent that the same have not therefore been performed by the Builder.
Section 8.3. Revesting Interest in HRA Upon Happening of Event of Default
Subsequent to Conveyance of Property to Builder. In the event that subsequent to the closing
or the sale of the Property to the Builder and prior to the issuance of the Certificate of
Completion:
(a) The Builder fails to begin construction of the Improvements in conformity with
this Agreement, and such failure is not due to Unavoidable Delays;
(b) The Builder, after commencement of the construction of the Improvements,
defaults in or violates obligations with respect to the construction of the Improvements, including
the nature and the date for the completion thereof, or abandons or substantially suspends
construction work, and such act or actions is not due to Unavoidable Delays;
(c) The Builder or successor in interest fails to pay real estate taxes or assessments on
the Property or any part thereof when due, or places thereon any encumbrance or lien
unauthorized by this Agreement, or suffers any levy or attachment to be made, or any supplier’s
or mechanic’s lien, or any other unauthorized encumbrance or lien to attach;
(d) There is, in violation of Article VII of this Agreement, any transfer of the Property
or any part thereof; or
(e) The Builder fails to comply with any of its covenants under this Agreement,
401253v8 CBR RC125-65
11
then the HRA shall have the right upon 30 days’ written notice to Builder and the Builder’s
failure to cure within such 30 days period, to re-enter and take possession of the Property and to
terminate and revest in the HRA the interest of the Builder in the Property; provided, however,
that such revestiture of title shall be subject to the lien of any prior encumbrance permitted under
this Agreement, or any right of a Homeowner pursuant to a valid Purchase Agreement authorized
by this Agreement.
Section 8.4. No Remedy Exclusive. No remedy herein conferred upon or reserved to
the HRA is intended to be exclusive of any other available remedy or remedies, but each and
every such remedy shall be cumulative and shall be in addition to every other remedy given
under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or
omission to exercise any right or power accruing upon any default shall impair any such right or
power or shall be construed to be a waiver thereof, but any such right and power may be
exercised from time to time and as often as may be deemed expedient. In order to entitle the
HRA or the Builder to exercise any remedy reserved to it, it shall not be necessary to give notice,
other than such notice as may be required in this Article VIII.
Section 8.5. No Additional Waiver Implied by One Waiver. In the event of the
occurrence of any Event of Default by either party, which Event of Default is thereafter waived
by the other party, such waiver shall be limited to the particular Event of Default so waived and
shall not be deemed to waive any other concurrent, previous or subsequent Event of Default.
ARTICLE IX.
ADDITIONAL PROVISIONS
Section 9.1. Conflict of Interests; Representatives Not Individually Liable. No HRA
officer who is authorized to take part in any manner in making this Agreement in his or her
official capacity shall voluntarily have a personal financial interest in this Agreement or benefit
financially there from. No member, official, or employee of the HRA shall be personally liable
to the Builder, or any successor in interest, for any Event of Default by the HRA or for any
amount which may become due to the Builder or successor or on any obligations under the terms
of this Agreement.
Section 9.2. Non-Discrimination. The provisions of Minnesota Statutes Section
181.59, which relate to civil rights and non-discrimination, and any affirmative action program of
the City shall be considered a part of this Agreement and binding on the Builder as though fully
set forth herein.
Section 9.3. Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand or other communication under this Agreement by either party to the
other shall be sufficiently given or delivered if it is sent by mail, postage prepared, return receipt
requested or delivered personally:
401253v8 CBR RC125-65
12
(a) As to the HRA:
Richfield HRA
Executive Director
6700 Portland Avenue South
Richfield, MN 55423
(b) As to the Builder:
Dustin Endres
Endres Custom Homes, Inc.
15561 Dunberry Way
Apple Valley, MN 55124
or at such other address with respect to either such party as that party may, from time to time,
designate in writing and forward to the other as provided in this Section 9.3.
Section 9.4. Counterparts. This Agreement may be simultaneously executed in any
number of counterparts, all of which shall constitute one and the same instrument.
Section 9.5. Extensions. Any extension to the Closing Date and/or extension to
Construction Completion Date that exceeds 6 months from the date agreed to in Section 3.7 and 4.3,
respectively, must be approved by the HRA Board. HRA staff is authorized to extend the Closing
Date to a date less than 6 months from the Closing Date agreed to in Section 3.7 and extend the
Construction Completion Date to a date less than 6 months from the Construction Completion Date
agreed to in Section 4.3.
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed
as of the day and year first above written.
[signature pages follow]
401253v8 CBR RC125-65
13
Signature Page for HRA
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
RICHFIELD, MINNESOTA
By _______________________________________
Its Chairperson
By _______________________________________
Its Executive Director
__________________________________________
STATE OF MINNESOTA )
) SS
COUNTY OF ______________ )
The foregoing instrument was acknowledged before me this __________ day of
____________________, 20_____, by , the Chairperson of the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota, a public body corporate
and politic under the laws of Minnesota, on behalf of the authority.
________________________________________________
Notary Public
STATE OF MINNESOTA )
) SS
COUNTY OF ______________ )
The foregoing instrument was acknowledged before me this __________ day of
____________________, 20_____, by , the Executive Director of the Housing
and Redevelopment Authority in and for the City of Richfield, Minnesota, a public body
corporate and politic under the laws of Minnesota, on behalf of the authority.
________________________________________________
Notary Public
401253v8 CBR RC125-65
14
Signature Page for Builder
Builder
By______________________________________
Its______________________________________
STATE OF MINNESOTA )
) SS
COUNTY OF ______________ )
The foregoing instrument was acknowledged before me this __________ day of
____________________, 20_____, by __________________________________________, the
______________________ of _______________________________________________, a
_________________________ under the laws of _____________________, on behalf of the
_____________________.
________________________________________________
Notary Public
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401253v8 CBR RC125-65
EXHIBIT A
FORM OF CERTIFICATE OF COMPLETION
The undersigned hereby certifies that ____________________________, has fully and
completely complied with its obligations under 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. ____________________ (the
“Contract”) with respect to the construction of the approved construction plans at
________________________, legally described as _____________________________ and is
released and forever discharged from its obligations under such Contract.
DATED: ___________________
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
RICHFIELD
By: __________________________________
Its: Executive Director
STATE OF MINNESOTA )
) SS
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this ____ day of
_______________, 20__, by _________________________ the 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:
Kennedy & Graven, Chartered
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
401253v8 CBR RC125-65
B-1
EXHIBIT B
PROGRAM GUIDELINES – LOT SALE PROGRAM
RICHFIELD REDISCOVERED
PROGRAM GUIDELINES
LOT SALE PROGRAM
REVISED: March 20, 2017
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401253v8 CBR RC125-65
PROGRAM OBJECTIVES ............................................................................................................................ 3
DEFINITIONS................................................................................................................................................ 3
PROGRAM BASICS ..................................................................................................................................... 3
APPLICATION REQUIREMENTS ................................................................................................................ 4
ADDITIONAL REQUIREMENTS .................................................................................................................. 5
HOUSE DESIGN AND SITE DEVELOPMENT REQUIREMENTS .............................................................. 5
New House Standards ............................................................................................................................ 6
Site Standards ......................................................................................................................................... 6
Construction Requirements .................................................................................................................. 6
General Standards .................................................................................................................................. 7
Green Community Concepts ................................................................................................................. 8
CITY REVIEW PROCEDURE ....................................................................................................................... 8
LOT SALE TO BUILDER/BUYER ................................................................................................................ 9
PROGRAM MARKETING ............................................................................................................................. 9
DATA PRIVACY .......................................................................................................................................... 10
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401253v8 CBR RC125-65
This document has been developed as a guidance tool for program administration. It should not be interpreted as
constituting any contractual agreement or liability by the City or Housing and Redevelopment Authority (HRA). The
HRA may modify or divert from the guidelines where it deems appropriate.
I. Program Objectives
1. To remove substandard, functionally obsolete housing on scattered sites throughout the City and
replace with new, higher-valued housing.
2. To eliminate the blighting influence of substandard housing, thus improving residential neighborhoods.
3. To alleviate the shortage of housing choices for families.
4. To facilitate the construction of larger three- to four-bedroom, owner-occupied homes designed for
families.
5. To facilitate the construction of multi-unit, owner-occupied homes designed to expand family
opportunities or to serve elderly residents.
These objectives will be achieved through the sale of lots by the Housing and Redevelopment Authority to
Builder/Buyer teams for the development of newly constructed homes.
II. Definitions
Applicant: An individual who submits an application for a Richfield Rediscovered lot. The Applicant may be a
Builder or the end Buyer. If the Applicant is a Builder, an end Buyer should be identified. If the Applicant is the
Buyer, the Applicant must submit a signed contract between the Builder and the Buyer to build a home on the lot
identified in the application.
Buyer: An individual(s) who will build, own and occupy a new housing unit in Richfield.
The Buyer will occupy the property and not offer it for rent. The Buyer may not also function as the Builder on a
Richfield Rediscovered project. The Buyer and Builder must be unrelated separate legal entities. A speculative
project by a Buyer may be considered if all other program requirements can be met. However, neither the Buyer, the
Buyer’s Builder or Builder’s subcontractors, or the Builder’s realty agents may occupy or purchase the property.
Buyers, unless licensed in the trade specified, may not put any sweat equity into the construction of the foundation,
wall/roof framing, shingling, exterior work, electrical/plumbing/HVAC systems or interior carpentry.
A Buyer, and all members of his/her household, is limited to building a home through the program no more than
once every seven years.
Builder: Licensed Contractor who has signed a contract with the Buyer to build a home on the lot identified in the
application.
Contract for Private Development: A contract between the HRA and the Builder or Buyer that establishes the
conditions under which the lot will be sold and the proposed house will be developed.
Green Community Concepts Plan: A written plan indicating how the proposed development will incorporate green
building features and concepts. Priority will be given to projects that incorporate green building features.
HRA: Housing and Redevelopment Authority in and for the City of Richfield.
Lot List: A listing of available lots for sale. Information regarding the lot location, size and sale price is provided.
III. Program Basics
1. HRA publishes a list of available vacant lots for purchase including sale price and development criteria.
2. Builder/Buyer team proposes a plan for a lot consistent with development criteria and program
requirements and makes an offer to purchase.
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401253v8 CBR RC125-65
3. HRA may issue a Request for Proposals for a specific lot(s) with a specific submittal deadline. HRA
staff review all Proposals submitted by the deadline for consistency with development criteria and
program requirements. The Proposal that best meets the criteria and requirements is selected to develop
the lot.
4. HRA approves lot sale.
5. Lot is sold to Builder or Buyer.
6. Builder constructs new home.
7. Projects must be completed within one year of HRA approval of the project.
IV. Application Requirements
The following must be submitted for application to the program:
1. $550 application fee
An application fee must be paid at the time of application. This fee is non-refundable and is not
part of the lot price.
2. Application Form
3. Floor plans
The layout of all levels, including basement and unfinished space, must be provided.
4. Elevations
Elevations of all four sides of the house, including view of garage shall be provided. Colored
renderings may also be required.
5. Site plan
The site plan shall indicate the location of the new house, walkways and garage.
6. Landscaping plan
A landscaping plan must indicate the location and type of trees, shrubbery, flowers and
landscaping materials (e.g. rocks, mulch) and any existing trees to be preserved.
7. Detail of construction materials to be used on the project.
8. Green Community Concepts Plan
The plan should indicate what Green Community Concepts will be incorporated into the project.
9. Construction timeline
Construction must be completed with one year of the purchase of the property.
10. Signed contract with Builder
11. Purchase agreement
If the Builder plans to purchase the lot, the application must include a valid purchase agreement
between the Buyer and the Builder for the lot to be developed.
12. Financial capability statement
A statement from a financial institution indicating willingness to provide sufficient construction
capital to complete the project must be provided.
13. Builder References
a. Five previous customers
b. Three major suppliers, one being the construction supplier
c. Building inspectors from two cities where the Builder has constructed new housing within the
past three years
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401253v8 CBR RC125-65
14. Proof of Builder’s Comprehensive General Liability with Property Damage Protection.
15. Proof of sufficient worker’s compensation insurance coverage by the Builder.
16. Written warranty program
To be provided to the Buyer, which guarantees at a minimum, warranted repairs as required by
Minnesota State Statute.
V. Additional Program Requirements
1. The Applicant is expected to meet with an architectural/design consultant prior to submitting an application.
A two-hour consultation is available through the HRA at a cost of $25 to the applicant. See the City’s
website (www.cityofrichfield.org) for more information. This requirement may be waived if the applicant is
using an architect for the project.
2. The site will be sold to the Builder or Buyer at the fair market value as appears on the Lot List. The HRA
will not accept offers for less than the established sale price.
3. A Contract for Private Development is signed by the HRA and the Builder or the Buyer. The Contract is a
standard form which includes conditions for acquisition and development of the property. The Contract
will establish a minimum required end-value for the property based on construction estimates provided by
the applicant. The Builder or Buyer will be expected to agree to the terms of the Contract before the
application can be scheduled on the HRA agenda.
4. The lot can be sold to either the Builder or the Buyer. If the lot is sold to the Builder, the Builder will pay
cash for the lot at closing and submit a Letter of Credit or cash escrow for $10,000. The Letter of Credit
must be from a financial institution incorporated in the Twin Cities metropolitan area. The cash escrow will
be held in a non-interest bearing account. The Letter of Credit or cash escrow will be released once the
construction and landscape work are completed and a final Certificate of Occupancy is issued.
5. If the lot is sold to the Builder and the Builder fails to complete construction as approved by the HRA, the
Letter of Credit or cash escrow may be drawn upon by the HRA. In addition, the Contract for Private
Development will contain a reverter provision, which will enable the HRA to reclaim ownership of the
property in the event of a default in the Contract. In the event that the Builder fails to complete
construction, the HRA may exercise its rights under the reverter provision, as well as draw upon the Letter
of Credit or cash escrow.
6. If the lot is sold to the Buyer, the Buyer will pay cash for the lot at closing and a $10,000 mortgage in favor
of the HRA will be filed on the property. The mortgage will be in first position. The HRA may consider
subordinating its interest in appropriate cases.
7. If the lot is sold to the Buyer and the Buyer fails to complete construction as approved by the HRA, the
HRA may exercise its rights provided in the mortgage.
8. A Buyer, and all members of his/her household, is limited to purchasing no more than one lot every seven
years.
VI. House Design and Site Development Requirements
The development of all sites shall meet the development criteria listed below, as reviewed and approved by the HRA.
To maximize the development of a given lot, the HRA reserves the right to explore all development options without
obligating the HRA to support any specific proposal, idea or solicitation.
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401253v8 CBR RC125-65
Housing design is a critical element of the program. Siding materials, exterior façade presentation, roof, window,
siding and building line variability, finished landscape, interior space function and use are all important issues of
design to the HRA. The design requirements were created to ensure that the homes built on the HRA-sold lots blend
in with the surrounding neighborhood and respond to the specific concerns of the HRA.
All new houses built under the Richfield Rediscovered Program must meet the requirements of the City’s Zoning
Code and additional criteria, as listed in this document.
A. New House Standards
1. New dwelling must be owner-occupied.
2. Three finished bedrooms are required, at a minimum.
3. Two finished bathrooms are required, at a minimum.
4. Two-car garage is required, at a minimum.
5. A full basement is required, unless the selected design results in a split-level or a garden-level type of
basement. In the case of an “accessible” house, a basement may be omitted if it would otherwise prohibit
accessible design elements.
B. Site Standards
1. After construction, the site must be fully landscaped, including plantings around the foundation. The entire
grounds shall be landscaped and be aesthetically pleasing in all seasons. Land forms and plant materials
shall be used to define the site and blend neatly with adjoining properties. Specific lot line blending
requirements may be required, as appropriate, for specific sites.
At a minimum, the applicant must meet the “Landscaping and Screening Requirements” in the City’s
Zoning Code under Section 544.03, Subd. 4, General landscaping requirements and Subd. 5, Residential
sites. The code is available on the City’s website: http://www.ci.richfield.mn.us
To the greatest extent possible, existing trees should be preserved. Any trees removed must be replaced
(they do not have to be the same species or in the same location) and should be labeled on the required
landscape plan.
2. Utility meters shall be screened from street view and locations must be specified on plans.
3. Site drainage should be accommodated on the site so that water is directed away from the new home and
the neighboring properties. Neighboring properties must not be disturbed by the creation of drainage
swales. Specific storm water management requirements may be required, as appropriate, including the
addition of gutters or on-site management for specific sites. Construction and the finished structure must
not have a detrimental impact on storm water drainage patterns in the neighborhood.
4. All air conditioning units must be located in the rear yard of the house, or as approved by the HRA.
C. Construction Requirements
1. Existing trees identified on the landscape plan as being preserved, must be protected during construction.
A tree wrap with board reinforcements shall be used on trees directly adjacent to active grading and
construction areas. Damaged or destroyed trees must be replaced.
2. The construction site, neighboring properties and adjacent public streets shall be kept free of construction
debris at all times.
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401253v8 CBR RC125-65
3. No construction workers, construction equipment or construction material shall encroach upon neighboring
properties.
4. The property shall have a new sanitary service line installed to the City sanitary sewer main consisting of
schedule 40 PVC or equivalent. If there is an existing 6" sewer stub at the property line, it must be lined
with 4" schedule 40 PVC or equivalent to the City’s sanitary main, and it must include a "donut" at the end
with cement.
The line must be televised after installation to ensure the following:
1. There are no obstructions in the line.
2. The PVC liner is not protruding into the City’s sanitary sewer main line.
D. General Standards
1. The value of the new home must meet or exceed the minimum value specified in the Contract for Private
Redevelopment.
2. All homes in the Richfield Rediscovered Program must be stick-built or high-quality modular, new
construction.
3. Exterior materials (siding, soffit, doors and windows) should be low-maintenance and durable. Brick,
aluminum, vinyl and fiber cement siding are preferred. Natural cedar lap is acceptable if properly stained or
painted. Hardboard panels or hardboard lap siding are prohibited. Roof valleys must have metal valleys
and not be woven.
4. Unit height and mass of the new house shall be compatible with the scale of the surrounding homes in the
neighborhood.
5. Plans must present a balanced and pleasing distribution of wall, door and window areas from all views.
6. The dominance of the garage door must be minimized through placement, architectural detail, door design
and utilization and design of windows. Garages, where the garage door faces the street, shall not be located
closer to the front lot line than the foremost facade of the principal building facing the front property line.
Garage sidewalls that face the street should appear to contain habitable space. This can be accomplished by
incorporating windows and other design elements into the garage wall that are in character with the
remainder of the dwelling. For lots that have alley access, the garage should be oriented to access the alley.
7. All building plans must have been prepared in consultation with an architect or qualified draftsperson. All
requirements by the Building Inspections Division must be met.
8. All Richfield Rediscovered houses must meet or exceed Minnesota Energy Code requirements.
9. All new homes shall be built to provide high quality sound insulation. Recommendations for sound
insulation measures may be provided on a site-by-site basis. All construction must conform to sound
attenuation building standards as required by Zoning Ordinance Section 541.19 for properties located
within the 2007 60-62 DNL Contour and 2007 63 or greater DNL contours.
9. If a variance is required to construct the proposed development, the HRA may, at its sole discretion, choose
to reject the application.
10. If the HRA accepts an application that needs a variance(s), sale of the property will be contingent upon the
applicant obtaining the necessary variance(s). The Applicant is responsible for applying for the variance(s)
at its own expense. The HRA, as owner of the property, will, however, cooperate with the application.
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401253v8 CBR RC125-65
E. Green Community Concepts
Priority will be given to projects incorporating the green community concepts listed below. Any concepts
the applicant would like considered during the application process should be explained in a written plan
submitted with the application. A $5,000 rebate will be provided to the Applicant for projects that obtain
certification through LEED for Homes, Minnesota GreenStar or Minnesota Green Communities.
1. Protect and conserve water and soil. To reduce water consumption, consider the use of water-conserving
appliances, fixtures, and landscaping. Steps should be taken to minimize the loss of soil and sediment
during construction and occupancy to reduce storm-water sediment and air pollution.
2. Minimize energy consumption. Reduce energy consumption by taking advantage of natural heating, cooling
and day lighting, and by using energy-efficient appliances, equipment and lighting.
3. Enhance indoor environmental quality. Use non-toxic materials, ventilation and exhaust systems, and
moisture control products and systems.
4. Use environmentally-preferable materials and resources. Use locally-produced, salvaged and/or
manufactured materials, products with recycled content or from renewable sources, recyclable or reusable
materials, and low-VOC-emitting materials.
5. Reduce waste. Reduce and manage wastes generated during the construction process and operation of
buildings. If demolition occurs, sort and recycle leftover materials and debris.
VII. City Review Procedure
1. Applicant reviews proposed project with HRA staff before plans are finalized.
2. Applicant submits application, plans, and application fee at least 45 days prior to the HRA meeting.
3. An application is considered to be received when delivered personally to HRA staff in a pre-arranged
meeting. If more than one application is submitted for a lot within five-working days, all applications will
be reviewed, and the application that best meets the program guidelines will be selected. The application fee
will be returned to the Applicant whose proposal was not selected.Following this five-day period, the lot
will be considered reserved by the selected application and no additional applications will be accepted for
the proposed lot while the application is being processed.
4. If an application is determined to be incomplete, the applicant will have 30 days to submit a complete
application. If a complete application is not received within 30 days, the application will be rejected and
the lot will be made available for new applications.
5. HRA staff review application to ensure conformance with House Design and Site Development
Requirements.
6. HRA staff may reject or accept an application at its sole discretion.
7. HRA staff may choose to issue a Request for Proposals (RFP) for a lot. In this case, Staff issues an RFP,
giving a specific time period within which proposals may be submitted. HRA staff review all proposals for
consistency with development criteria and program requirements. The proposal that best meets the criteria
and requirements is selected to develop the lot. The applicant will have 30 days to submit a complete
application. If a complete application is not received within 30 days, the application will be rejected. Staff
may elect to award the lot to another submitted proposal or solicit additional proposals.
8. The Builder or Buyer executes a Contract for Private Redevelopment.
9. An application is determined to be complete at least three weeks prior to the HRA meeting.
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10. HRA staff publishes a legal notice of the public hearing and prepares a report and recommendation for the
HRA.
11. HRA reviews application, conducts a public hearing, and takes action at the HRA meeting.
12. If approved, the Contract for Private Redevelopment is executed by the HRA.
VIII. Lot Sale to Builder or Buyer
1. Upon approval of the application by the HRA, a closing will be scheduled between the HRA and the
Builder or Buyer.
2. The HRA will prepare all statements, affidavits, documents, and general release forms required for closing.
3. The Builder applies for a building permit prior to closing. The Builder is responsible for acquiring the
necessary building permits with the City of Richfield Building Inspections Division. If changes to the plans
are required by the Inspections Division, the applicant must notify HRA staff.
4. The Applicant provides evidence to HRA staff that all requirements to proceed with construction, as
determined in the Contract for Private Redevelopment, have been met.
5. The HRA conveys the property to the Builder or Buyer by Quit Claim Deed. The site will be sold to the
Builder or Buyer at the fair market value as appears on the Lot List.
6. At closing with the Builder, the Builder provides a Letter of Credit or cash escrow for $10,000 to the HRA.
7. At closing with the Buyer, the Buyer signs a mortgage and promissory note for $10,000 in favor of the
HRA.
8. Upon completion of the project, the Letter of Credit or cash escrow is released to the Builder or the Buyer’s
mortgage is released. A Certificate of Completion is executed by the HRA, releasing the obligations of the
Contract for Private Redevelopment.
IX. Program Marketing
Richfield Rediscovered program marketing is entirely at the discretion of the HRA. It may include the following:
1. Buyer Solicitation. The HRA may market the program to potential Buyers through promotional articles,
direct mail, the Internet, or other methods as deemed appropriate. Buyers may be any financially capable
individual or household, including first-time buyers, move-up buyers or empty-nesters.
2. Public Promotion.
a. The HRA will periodically provide information about the program through articles in city
publications, on the City’s web site, on the Community Cable channel, or via press releases to
promote community awareness.
b. A public open house may be held to provide an opportunity for residents and other interested
parties to collectively view the finished homes. The Parade of Homes Fall Showcase and Spring
Preview may also accomplish this.
c. Photos will be taken of finished homes and may be used to promote the program.
A program information package will be mailed to all interested participants. The information packet may include the
following:
1. Lot List
2. Richfield Rediscovered Lot Sale Procedural Guidelines
3. Application Form
4. Sample Contract for Private Redevelopment
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X. Data Privacy
The HRA is subject to Minnesota Statutes Chapter 13 (the “Minnesota Government Data Practices Act”). Under
the Minnesota Government Data Practices Act, the names and addresses of applicants for or recipients of
assistance under this program and the amount of assistance received under this program are public data. All other
financial information submitted to the HRA for purposes of the program application is considered private data.
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EXHIBIT C
QUIT CLAIM DEED
STATE DEED TAX DUE HEREON: $_______
Date: ____________________
FOR VALUABLE CONSIDERATION, 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,
Grantor, hereby conveys and quit claims to _____________________, a _______________
under the laws of the State of ____________, Grantee, real property in Hennepin County,
Minnesota, described as follows:
, according to the map or plat thereof on file or of record in the office of the Hennepin County
Recorder.
This deed is subject to that certain Contract for Private Development between Grantor and
Grantee, dated ___, 20__ (the “Contract”), recorded ___, 20__, in the office of the Hennepin
County Recorder/Registrar of Titles as Document No. ______________. The Contract
provides that the Grantee’s rights and interest in the real property described above are subject to the
Grantor’s right to re-enter and revest in Grantor title to the Property under conditions specified
therein, including but not limited to termination of the Grantor’s right to re-enter and revest upon
issuance of a Certificate of Completion as defined in the Agreement.
(if more space is needed, continue on back)
together with all hereditaments and appurtenances.
The Seller certifies that the seller does not know of any wells on the described real property.
A well disclosure certificate accompanies this document.
I am familiar with the property described in this instrument and I certify that the status and
number of wells on the described real property have not changed since the last previously
filed well disclosure certificate.
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD
Affix Deed Tax Stamp Here
By
Its Chairperson
By
Its Executive Director
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NOTARIAL STAMP OR SEAL (OR OTHER TITLE OR RAK)
NOTARIAL STAMP OR SEAL (OR OTHER TITLE OR RAK)
STATE OF MINNESOTA
} ss.
COUNTY OF HENNEPIN
The foregoing was acknowledged before me this ____ day of _______, 20___, by
_____________, the Chairperson of the Housing and Redevelopment Authority in and for the
City of Richfield, a public body corporate and politic under the laws of Minnesota, on behalf of
the corporation, Grantor.
____________________________________
SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT
STATE OF MINNESOTA
} ss.
COUNTY OF HENNEPIN
The foregoing was acknowledged before me this ____________ day of _______, 20__,
by _____________, the Executive Director, of 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 corporation, Grantor.
____________________________________
SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT
Check here if part or all of the land is Registered (Torrens)
Tax Statements for the real property described in this
instrument should be sent to (include name and
address of Grantee):
This instrument drafted by:
Kennedy & Graven, Chartered
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
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401253v8 CBR RC125-65
EXHIBIT D
WELL DISCLOSURE
The Seller certifies that the seller does not know of any wells on the described real property.
A well disclosure certificate accompanies this document. [form attached]
X The status and number of wells on the described real property have not changed since the last
previously filed well disclosure certificate.
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