01-16-2018 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
J AN U ARY 16, 2018
7:00 P M
C all to Order
C onsideration of the election of officers for the Richfield Housing and Redevelopment A uthority for 2018.
S taff Report No. 1
Approval of the Minutes
A pproval of the mi nutes of the regular Housing and Redevelopment A uthority meeti ng of D ecember 18, 2017.
AG E N D A AP P R O VAL
1.A pproval of the A genda
2.Consent C alendar contains several separate items which are acted upon by the H R A in one motion.
Once the Consent Calendar has been approved, the individual items and recommended actions have
also been approved. No further H R A action on these items is necessary. However, any H R A
Commissioner may request that an item be removed from the Consent Calendar and placed on the
regular agenda for H R A discussion and action. All items listed on the Consent Calendar are
recommended for approval.
A .C onsi deration of the approval of resolutions designating official depositories for the Housing and
Redevelopment A uthority for 2018, including the approval of collateral.
S taff Report No. 2
B .C onsi deration of the approval of designating the C ommunity D evelopment D irector as the A cting
E xecuti ve D irector of the HRA for 2018 in the event the E xecutive D i rector i s absent from the C ity.
S taff Report No. 3
3.C onsideration of items, if any, removed from C onsent C alendar
P U B LIC H EAR IN G S
4.P ublic heari ng and consideration of the approval of a resolution authorizing the sale of 6525 15th Avenue to
E ndres C ustom Homes and the approval of a C ontract for P rivate D evelopment with E ndres C ustom Homes for
the constructi on of a single family home through the Richfield Rediscovered P rogram.
S taff Report No. 4
H R A D IS C U S S IO N IT E MS
5.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
6.E xecutive D i rector's Report
C L AIMS AN D PAYR O LL S
7.C laims and P ayrolls
8.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.
AGENDA SECTION:Call to Order
AGENDA ITEM #
STAFF RE P ORT NO. 1
HOUSING AND REDE V E LOP MENT AUT HORIT Y
ME E T ING
1/16/2018
RE P O RT P RE PA RE D B Y: J ared Voto, E xecutive A ide/A nalyst
D E PA RTM E NT D IRE C TOR RE V IE W: S teven L . D evich, E xecutive D irector
1/8/2018
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
1/8/2018
I T E M F O R C O UNC I L C O NS I D E RAT IO N:
Consideration of the election of officers for the Richfield H ousing and R edevelopment Authority for
2018.
E X E C UT IV E S UM M ARY:
The bylaws of the Richfield Housing and Redevelopment Authority (HRA) provide that the HRA hold an
annual meeting in J anuary. The bylaws further provide that the Chair, Vice Chair, and Sec retary of the HRA
be elected at this meeting
Offic ers for 2017 were:
Mary S upple, C hair
Pat Elliott, Vic e Chair
Erin Vrieze D aniels, Sec retary
RE C O M M E ND E D AC T IO N:
By motion: Elect officers for the Richfield Housing and R edevelopment Authority for 2018.
B AS IS O F RE C O M M E ND AT IO N:
A.H IS TOR IC AL C ON TEXT
Provided in the Exec utive Summary.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The HRA bylaws provide for the elec tion of offic ers.
C.C R IT IC AL T IMIN G ISSU E S:
The HRA bylaws require that an election of officers be held at the annual meeting in J anuary.
D.F IN AN C IAL IMPAC T:
N/A
E.L E GAL C ON S ID E R AT ION :
None
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:
N/A
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
December 18, 2017
CALL TO ORDER
The meeting was called to order by Chair Supple at 7:01 p.m.
HRA Members Mary Supple, Chair; Pat Elliott; Michael Howard; Sue Sandahl and Erin
Vrieze Daniels.
Staff Present: Steve Devich, Executive Director, Julie Urban, Housing Manager and Kate
Aitchison, Housing Specialist.
APPROVAL OF THE MINUTES OF THE REGULAR HOUSING AND REDEVELOPMENT
AUTHORITY MEETING OF NOVEMBER 20, 2017
M/Elliott, S/Vrieze Daniels, to approve the minutes of the regular Housing and
Redevelopment Authority meeting of November 20, 2017.
Motion carried 5-0.
Item #1 HRA APPROVAL OF THE AGENDA
M/Vrieze Daniels, S/Elliott, to approve the agenda.
Motion carried 5-0.
Item #2
CONSIDERATION OF THE APPROVAL OF A RESOLUTION ACCEPTIONG
VACATED RIGHT-OF-WAY FROM THE CITY OF RICHFIELD
Housing Manager Julie Urban presented Staff Report 52.
M/Howard, S/Elliott, to approve a resolution accepting vacated right-of-way from the City of
Richfield,
Motion carried 5-0.
Item #3
PUBLIC HEARING AND CONSIDERATION OF THE APPROVAL OF A
RESOLUTION AUTHORIZING THE SALE OF 6421 14TH AVENUE, 6416 16TH
AVENUE, AND 6420 16TH AVENUE TO ENDRES CUSTOM HOMES AND THE
APPROVAL OF THREE CONTRACTS FOR PRIVATE DEVELOPMENT WITH
ENDRES CUSTOM HOMES FOR THE CONSTRUCTION OF THREE SINGLE
FAMILY HOMES THROUGH THE RICHFIELD REDISCOVERED PROGRAM
HRA Meeting Minutes -2- December 18, 2017
Housing Specialist Kate Aitchison presented Staff Report 53.
Commissioner Elliott asked about existence of the end-buyer for this property, and staff’s
expectations of builders moving forward. Housing Specialist Aitchison replied that staff was
confident an end-buyer would be found prior to approval by the HRA.
Commissioner Vrieze Daniels asked if the recent changes to the airport noise ordinance
was reflected in these plans. Staff responded that the builder was complying with the new
ordinance. Commissioner Vrieze Daniels questioned whether the discounted lot price was
necessary given the large demand the builder has received for this product. Housing Manager,
Julie Urban, responded that the market conditions thus far have not made these lots developable,
and by offering these reductions in lot price the builder is able to provide a viable product to buyers
who are eager to move forward.
Dustin Endres, owner of Endres Custom Homes, added that the window enhancements
along with new/upgraded sewer and water service have added to the costs of these lots. He stated
he has discussed these lots with previous buyers and did not have anyone interested in builder
other models. Since presenting this newer model, at a new price point, he has had many inquiries
into the program.
Commissioner Howard stated his support for the area and the new homes as adding to that
excitement.
Chair Supple opened the public hearing.
M/Sandahl, S/Vrieze Daniels, to close the public hearing.
Motion carried 5-0.
M/Howard, S/Elliott, approve of a resolution authorizing the sale of 6421 14th Avenue, 6416
16th Avenue and 6420 16th Avenue to Endres Custom Homes.
Motion carried 5-0.
M/Elliott, S/Sandahl, to approve of contract for private development with Endres Custom
Homes for the construction of a new home at 6421 14th Avenue.
Motion carried 5-0.
M/Vrieze Daniels, S/Elliott, to approve of contract for private development with Endres
Custom Homes for the construction of a new home at 6416 16th Avenue.
Motion carried 5-0.
M/Vrieze Daniels, S/Sandahl, to approve of contract for private development with Endres
Custom Homes for the construction of a new home at 6420 16th Avenue.
Motion carried 5-0.
Item #4
HRA DISCUSSION ITEMS
Chair Supple asked that the January 2018 and February 2018 meetings be rescheduled to
avoid holidays. The regularly scheduled January meeting will be held on Tuesday, January 16th,
and the regularly scheduled February meeting will be held on Tuesday, February 20th.
M/Sandahl, S/Vrieze Daniels, to reschedule the regularly scheduled January 2018 HRA
meeting to January 16th, 2018, and the regularly scheduled February 2018 HRA meeting to
February 20th, 2018.
Motion carried 5-0.
HRA Meeting Minutes -3- December 18, 2017
Chair Supple stated that the motion needed amending to also include the Economic
Development Authority.
M/Sandahl, S/Vrieze Daniels, to amend the previous motion to also include the regularly
scheduled Economic Development Authority meetings.
Motion carried 5-0.
Item #5
EXECUTIVE DIRECTOR REPORT
Executive Director Devich stated that the city is ending a busy year when a lot of good
things were accomplished. Looking ahead he sees another busy year for the city with good things
coming up.
Item #6
CLAIMS AND PAYROLL
M/Elliott, S/Sandahl, that the following claims and payroll be approved:
U.S. BANK 12/18/2017
Section 8 Checks: 129299-129381 $156,838.52
HRA Checks: 33330-33362 $ 69,908.13
TOTAL $226,746.65
Motion carried 5-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:25 p.m.
Date Approved: January 16, 2018
Mary B. Supple
HRA Chair
Kate Aitchison Steven L. Devich
Housing Specialist Executive Director
AGENDA SECTION:Consent Calendar
AGENDA ITEM #2.A.
STAFF RE P ORT NO. 2
HOUSING AND REDE V E LOP MENT AUT HORIT Y
ME E T ING
1/16/2018
RE P O RT P RE PA RE D B Y: C hris Regi s, F inance Manager
D E PA RTM E NT D IRE C TOR RE V IE W: S teven L . D evich, C ity Manager
12/29/2017
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, C ity Manager
12/29/2017
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 resolutions designating official depositories for the H ousing and
Redevelopment Authority for 2018, including the approval of collateral.
E X E C UT IV E S UM M ARY:
I n compliance with Minnesota statutes, the Housing and Redevelopment Authority of Richfield (HRA) must
designate on an annual basis those financial institutions it does business with.
The following resolutions for the HRA Board’s c onsideration, designate U.S Bank/4M Fund as a depository
of HRA funds, and certain savings and loan associations, banks, c redit unions and c ertain financial
institutions as depositories for the investment of HRA funds.
RE C O M M E ND E D AC T IO N:
By motion: Adopt the resolutions designating official depositories, with the understanding that the
H R A could not invest in any of the depositor ies beyond the level of insurance coverage of the pledged
collateral.
B AS IS O F RE C O M M E ND AT IO N:
A.H IS TOR IC AL C ON TEXT
N/A
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
I n ac cordanc e with Minnesota Statutes S ec tion 118A.01 - 118A.06, the HRA of Richfield must
designate financ ial institutions annually. The institutions must pledge the collateral over and above
the amount of federal insurance, as public depositories.
U.S. Bank ac ts as the banking institution in the HRA’s banking arrangement with the 4M Fund.
Monies rec eived, chec ks written, by the HRA, flow through U.S. B ank, however, at the end of
each business day, any proceeds remaining in HRA U.S. Bank ac counts are swept to the 4M
Fund to be invested. Therefore, at the end of the business day the HRA ac counts are zero, which
means the collateral requirements of Minnesota Statutes Section 118A.03 are not required.
Acc ordingly, U.S. Bank has met all other statutory requirements and should be c onsidered as a
depository for the HRA’s vendor acc ounts and all savings deposits.
The HRA must also designate annually, c ertain savings and loan assoc iations, banks, and credit
unions as official depositories for deposit and investment of certain HRA funds. W ith approval of
these offic ial depositories, the HRA will be able to invest funds in these institutions, not exceeding
the federal insurance of $250,000.
Finally, a designation must be made for certain financ ial institutions as depositories for the
investment of HRA funds for 2018. These institutions, such as investment brokerage firms, offer
government securities in the manner required by law. These financial institutions include RB C
Capital Markets, Ray mond J ames & Associates, Northland Securities, Oppenheimer & Co.,
W ells Fargo I nstitutional Retirement and Trust, and the 4M Fund.
C.C R IT IC AL T IMIN G ISSU E S:
N/A
D.F IN AN C IAL IMPAC T:
N/A
E.L E GAL C ON S ID E R AT ION :
The HRA is required by Minnesota S tatute 118A.01 - 118A.06, to designate as a depository of
funds, insured banks or thrift institutions. Any c ollateral so deposited is acc ompanied by an
assignment pledged to the HRA in the amount specified in the resolutions.
ALT E R N AT IV E R E C O MME N D AT IO N(S):
The HRA c ould solic it other financial institutions for offic ial depositories, but past relationships with the
depositories recommended have proven satisfac tory for the City.
P R IN C IPAL PAR TIE S EXP E C T E D AT ME E T IN G:
N/A
AT TAC H ME N TS :
D escripti on Type
Resolution desi gnating US B ank a deposi tory of fund of
the HRA of Richfield for the year 2018 Resolution L etter
Resolution desi gnating certain S &L associati ons, banks,
and credit unions as depositories for the i nvestment of
HRA funds i n 2018.
Resolution L etter
Resolution desi gnating certain financial insti tuti ons as
depositori es for the investment of HRA of Ri chfi eld funds
in 2018.
Resolution L etter
RESOLUTION NO.
RESOLUTION DESIGNATING U.S. BANK
A DEPOSITORY OF FUNDS OF THE HRA OF RICHFIELD
FOR THE YEAR 2018
BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield as
follows:
That, in accordance with Minnesota Statutes, Section 118A.01- 118A.06, U.S.
Bank be, and hereby is designated a depository of the funds of the Housing and
Redevelopment Authority of Richfield, subject to modification and revocation at any time
by said Housing and Redevelopment Authority, and subject to the following terms and
conditions:
The said depository shall not be required to give bonds or other securities for
such deposits provided that the total sum thereof shall not at any time exceed in any
depository the sums for which its deposits are insured under the Acts of Congress of the
United States relating to insurance of bank deposits; but that in case such deposits in
any such depository shall at any time exceed such insured sum, said depository shall
immediately furnish bonds or other security for such excess according to law, approved
by the Housing and Redevelopment Authority of Richfield.
That said depository shall pay on demand all deposits therein; and shall pay all
time deposits, at or after the end of the period for which the same shall be deposited, on
demand.
BE IT FURTHER RESOLVED, that there shall be maintained a general account
in which shall be deposited all monies. The following officers or their facsimile
signatures shall sign checks on this account;
MARY SUPPLE, CHAIR
STEVEN L. DEVICH, EXECUTIVE DIRECTOR
BE IT FURTHER RESOLVED, that all funds remaining in the account at the end
of each business day will be transferred from U.S. Bank to the 4M Fund where funds
deposited are invested and insured.
Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota
this 16th day of January, 2018.
Mary Supple, Chair
ATTEST:
Erin Vrieze Daniels, Secretary
RESOLUTION NO.
RESOLUTION DESIGNATING CERTAIN SAVING AND LOAN ASSOCIATIONS,
BANKS
AND CREDIT UNIONS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING
AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2018
BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield,
Minnesota:
WHEREAS, pursuant to Minnesota Statutes, Sections 118A.01 – 118A.06,
municipal funds may be deposited in any Savings and Loan Association, Bank or Credit
Union which has its deposits insured by the Federal Deposit Insurance Corporation
(FDIC), or National Credit Union Administration (NCUA); and
WHEREAS, the amount of said deposits may not exceed the FDIC/NCUA
insurance covering such deposits which insurance amount is presently $250,000; and
WHEREAS, the deposit of Housing and Redevelopment Authority funds in
Savings and Loan Associations and Banks would provide greater flexibility in the
Housing and Redevelopment Authority’s investment program and maximize interest
income thereon.
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority of Richfield, Minnesota, as follows:
1. It is hereby found and determined that it is in the best interest of the proper
management of Housing and Redevelopment Authority funds that certain
Savings and Loan Association and Banks be designated as additional
depositories for Housing and Redevelopment Authority funds for 2018.
2. It is further found and determined that the purpose of such depository
designation is to facilitate the proper and advantageous investments of
Housing and Redevelopment Authority funds and that such designation is not
exclusive nor does it preclude the deposit of any Housing and
Redevelopment Authority funds in other officially designated depositories of
the Housing and Redevelopment Authority.
3. The Treasurer and Finance Manager are hereby authorized to deposit
Housing and Redevelopment Authority funds in various depositories up to the
amount of $250,000, or such other amount as may be subsequently permitted
by law, such deposits to be in the form of demand accounts, payable to the
Housing and Redevelopment Authority of Richfield on the signatures of the
Housing and Redevelopment Authority Treasurer or Finance Manager. Such
deposits may be made and withdrawn from time to time by the Treasurer or
Finance Manager as his best judgment and the interests of the Housing and
Redevelopment Authority dictates.
4. The investment of funds and the reporting thereof pursuant to this resolution
shall be conducted in accordance with established policies of the Housing
and Redevelopment Authority regarding the investment of Housing and
Redevelopment Authority funds.
Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 16th
day of January, 2018.
Mary Supple, Chair
ATTEST:
Erin Vrieze Daniels, Secretary
RESOLUTION NO.
RESOLUTION DESIGNATING CERTAIN FINANCIAL
INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF
HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2018
WHEREAS, the Housing and Redevelopment Authority of Richfield has money
which is available for investment; and
WHEREAS, different financial institutions offer different rates of return on
investments; and
WHEREAS, the Housing and Redevelopment Authority of Richfield shall purchase
U. S. Treasury Bills, U. S. Treasury Notes and other such government securities in the
manner required by law from the institution offering the highest rate to the Housing and
Redevelopment Authority of Richfield providing greater flexibility in the investment
program and maximize interest income thereon.
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority of Richfield, Minnesota, in accordance with Minnesota Statutes, Sections
118A.01 – 118A.06, as follows:
1. It is hereby found and determined that it is in the best interest of the proper
management of Housing and Redevelopment Authority of Richfield funds that
certain financial institutions be designated as additional depositories for
Housing and Redevelopment Authority of Richfield funds for 2018.
2. The following financial institutions designated as depositories for the Housing
and Redevelopment Authority of Richfield funds:
RBC Capital Markets. Raymond James & Assoc.
4M Fund Oppenheimer & Co.
Wells Fargo Institutional Retirement & Trust
Northland Securities, Inc.
3. The Treasurer and Finance Manager are hereby authorized to deposit the
Housing and Redevelopment Authority of Richfield funds in any or all of the
depositories herein designated. Such deposits may be made and withdrawn
from time to time by the Treasurer or Finance Manager’s judgment and as the
interest of the Housing and Redevelopment Authority of Richfield dictates.
4. The investment of funds and the reporting thereof pursuant to this resolution
shall be conducted in accordance with established policies regarding the
investment of these funds.
Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 16th
day of January, 2018.
Mary Supple, Chair
ATTEST:
Erin Vrieze Daniels, Secretary
AGENDA SECTION:Consent Calendar
AGENDA ITEM #2.B.
STAFF RE P ORT NO. 3
HOUSING AND REDE V E LOP MENT AUT HORIT Y
ME E T ING
1/16/2018
RE P O RT P RE PA RE D B Y: J ared Voto, E xecutive A ide/A nalyst
D E PA RTM E NT D IRE C TOR RE V IE W: S teven L . D evich, C ity Manager
1/8/2018
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, C ity Manager
1/8/2018
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 designating the C ommunity Development D irector as the Acting
Executive Director of the H R A for 2018 in the event the Executive Director is absent from the City.
E X E C UT IV E S UM M ARY:
The City Manager serves as the HRA Executive Director. I t is recommended that the C ommunity
Development Director be designated by the HRA as the Ac ting Exec utive Direc tor to serve in that c apacity
during the absenc e of the Executive Director.
RE C O M M E ND E D AC T IO N:
By motion: D esignate the C ommunity Development D irector as the Acting E xecutive Director of the
H R A for 2018 in the event the Executive D irector is absent from the City.
B AS IS O F RE C O M M E ND AT IO N:
A.H IS TOR IC AL C ON TEXT
Past practic e has been for the HRA to designate an Acting Executive Director for times when the
Executive D irec tor is absent from the City.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
Typic ally, this designation is made at the first meeting in J anuary of eac h year.
C.C R IT IC AL T IMIN G ISSU E S:
I t is necessary to designate a person to serve as Ac ting Executive D irec tor to ensure c ontinuation
of HRA operations during an absenc e of the Executive Director.
D.F IN AN C IAL IMPAC T:
This designation has no cost to the HRA.
E.L E GAL C ON S ID E R AT ION :
N/A
ALT E R N AT IV E R E C O MME N D AT IO N(S):
The HRA may defer this designation to a future meeting.
P R IN C IPAL PAR TIE S EXP E C T E D AT ME E T IN G:
N/A
AGENDA SECTION:PUBLIC HEARINGS
AGENDA ITEM #4.
STAFF RE P ORT NO. 4
HOUSING AND REDE V E LOP MENT AUT HORIT Y
ME E T ING
1/16/2018
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
1/9/2018
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
1/11/2018
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 6525 15th
Avenue to Endr es C ustom Homes and the approval of a Contract for Pr ivate Development with
Endres Custom Homes for the construction of a single family home thr ough the R ichfield
Rediscovered P rogram.
E X E C UT IV E S UM M ARY:
Endres Custom Homes (the Builder) is applying to purchase the lot at 6525 15th Avenue from the Housing
and Redevelopment A uthority (HRA) for the c onstruc tion of a single family home. The new home would be a
two-story home with four bedrooms, three baths, a finished basement and a two-car attac hed garage. The
new home will be 2,135 finished square feet with a minimum end value of $324,900.
W hile the Richfield Redisc overed Program has been very suc cessful in recent years, several lots 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. Endres C ustom Homes was approved by
the HRA to purchase three Ric hfield Rediscovered lots in D ec ember and subsequently has found buy ers
interested in the remaining lots for sale. The home at 6525 15th Avenue has been pre-sold to a buy er.
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 a new home viable on this lot, staff is
rec ommending a disc ounted lot sale price to ac count for additional costs related to required window and
sewer-line updates. The property at 6525 15th Avenue was listed at $45,000 and the proposed lot sale price is
$37,725.
RE C O M M E ND E D AC T IO N:
Conduct and close the public hearing and by motion:
1. Approv e a resolution authorizing the sale of 6525 15th Ave nue to Endre s Custom
Home s; and
2. Authorize ex ecution of a Contract for Private De ve lopment be twe en the Housing and
Redev e lopment Authority and Endre s Custom Home s for the re de ve lopment of 6525
15th Av e nue .
B AS IS O F RE C O M M E ND AT IO N:
A.H IS TOR IC AL C ON TEXT
The HRA purc hased 6525 15th Avenue in 2013 for $61,754.
The existing substandard home was abated and demolished in 2014.
The vac ant lot has been listed for $45,000.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The proposed project 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 t also meets 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 property by
Marc h 1, 2018, and to c omplete construction by September 1, 2018. All Richfield Redisc overed
contracts 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:
The HRA acquired the 51-foot wide property and struc ture in 2013 for approximately $62,000.
The appraised value of the vacant lot is $45,000.
Under the terms of the Contract, $37,725 will be due at c losing.
A disc ount to the lot sale price is applied for upgraded window costs and sewer line updates.
Under the terms of the Contract for the property, the contracted minimum market value of the new
home will be $324,900.
Under the terms of the Contract, the Builder will also be required to submit a $10,000 cash
esc row.
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 J anuary 4, 2018.
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 property and the Contract 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 Resolution L etter
C ontract for P rivate D evelopment C ontract/A greement
L ot P hoto E xhibit
House plans E xhibit
S ite plan E xhibit
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT
6525 15th 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: 6525 15th Avenue
Legal: Lot 18, Block 5, Nokomis Gardens Rearrangement of Blocks 1-5, 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 6525 15th Avenue is $37,725 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 6525 15th Avenue is authorized to be sold for
$37,725 to Endres Custom Homes; and
2. The Chairperson and Executive Director are authorized to execute a Contract
for Private Development and other agreements as required to effectuate the
sale to the Builder.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 16th day of January, 2018.
Mary B. Supple, Chair
ATTEST:
Erin Vrieze Daniels, Secretary
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
6525 15th 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. $324,900, 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 18, Block 5, Nokomis Gardens Rearrangement of Blocks 1-5, Girard Parkview,
Hennepin County, Minnesota
Located on land having a street address of:
6525 15th 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 does 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
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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.
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401253v8 CBR RC125-65
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.
13. Builder References
a. Five previous customers
b. Three major suppliers, one being the construction supplier
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401253v8 CBR RC125-65
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.
VI. House Design and Site Development Requirements
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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 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.
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401253v8 CBR RC125-65
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.
9. If a variance is required to construct the proposed development, the HRA may, at its sole discretion, choose
to reject the application.
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401253v8 CBR RC125-65
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.
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.
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401253v8 CBR RC125-65
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:
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:
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401253v8 CBR RC125-65
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
X 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]
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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