Loading...
11-18-85 agenda5-/ HOUSING AND REDEVELOPMENT AUTHORITY .Office of Executive Director HRA Letter No. 66 Agenda November 18, 1985 Housing and Redevelop-went Authority Commissioners City of Richfield Subject:- Change of Second Mortgage Lien Amount In Sale Of 920-924 W. 66th Street Dear Commissioners: On .July 15, 1985, the HRA reviewed and approved the sale of the two-unit townhouse at 920-924 W. 66th Street (HRA Letter 43,5, Resolution ~~263A). The details of the sale of the units included: a $55,000 first mortgage [financed with 9.95 mortgage money provided by the Minnesota Housing Finance Agency (MHFA)]; $5,000 downpayment; an additional $22,000 second. mortgage for 920 W. 66th Street; and, $22,900 second mortgage for 924 W. 66th Street. These second mortgages accrue nc interest and would be paid by the purchasers when they resell treir unit at some future time. The amount of the second mortgage would be revenue to the HRA. This second lien is necessary to keep the initial purchase .price affordable to moderate income families and has been utilized in the past with several other housing units. This letter explains why a reduction in this second mortgage amount may be necessary and requests that the HRA authorize staff to change the purchase agreement and second mortgage note when final building costs are determined by a final appraisal report. The value of properties that the HRA has sold to moderate income families. has been determined through an initial FHA appraisal process. This value is established by FHA to determine a market rate sales price for the property as well as a maximum mortgage amount- that FHA would be willing to provide for the property. An .FHA appraisal was obtained for the properties at 920/924 W. 66th Street prior to construction of the project. .The value of the units at 920/924 W. 66th Street were $82,000 and $82,900 respectively. The financing that the HRA has received from MHFA to sell these units requires an additional appraisal to occur prior to receiving a mortgage commitment. The MHFA appraisal of 920 W. 66th Street valued the property at $77,000, $5,000 less-than the FHA appraisal. Therefore, MHFA is only willing to provide ~" 4. HRA lien 920 W. 66th `Street $ 22,000 $ 17,000# 92~+ W. 66th Street 22,900 17,000* * Estimated - based upon only one appraisal to date It is recommended that the attached resolution be adopted. Re ectf y submitted, 'C John G. Cartwr ht Executive Director JGC/eja `_~ HRA RESOLUTION N0. RESOLUTION AUTHORIZING THE CHANGE~OF THE' SECOND MORTGAGE LIEN AMOUNT IN THE SALE OF g20-924 W. 66TH STREET WHEREAS, the Housing .and Redevelopment Authority in and for the City of Richfield, Minnesota has approved the sale of the two-unit townhouse at 920-924 W. 66th Street at their July 15, 1985 meeting (HRA Letter 435, Resolution 263A), and WHEREAS, a recent appraisal of the property at 920 W. 66th Street placed the value at lower than. was originally valued by FHA, •and WHEREAS, a reduced value suggests that the second mortgage lien would have to be reduced, and WHEREAS, it is likely the appraisal of the .property at 924 W. 66th Street will also provide a lower value than originally given by FHA NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority of Richfield, Minnesota; __ ._ _...._.__- _ __.._.__..._.7.~..._.~ha~.'~.b:o.._.HEA_E_xeo.u~.iv_e.~~irae.t_or_:_.and--Boa.rd...C-hairman--. __.. .._._--_. are autYiorized and directed to execute amendments. to purchase agreements-and second. mortgage note .for g20-92.4 W. 66th Street that reduce the amount of the second mortgage to no less than $17,000. - Passed by the Housing and Redevelopment Authority in and for the City of Richfield this 18th day of November, 1985.. Thomas E. Harms, Chairman ATTEST: Joan Helmberger, Secretary ti HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 65 Agenda November 18, 1985 Housing and Redevelopment Authority Commissioners City of Richfield Subject: Public Hearing, Sale of Rae Drive/66th Street Property and Authorization to Enter Into Developers Agreement Dear Commissioners: A public hearing has been scheduled for the November 18, 1985, HRA meeting, to consider the sale of 910 and 10.16 W. 66th Street and 901 and 903 Rae Drive.. The property is to be sold to George E. Branton Construction Company, the developer selected by the HRA in August, 1985.. This letter .reviews recent actions and requests the HRA to: - -Authorize the sale of the 66th Street and Rae Drive properties; -Enter into a development agreement with George E. ..Branton Construction Co; -Review and approve modifications to the "Interest Rate Reduction Program Plan".and "Regulations"; and, -Approve a reduction in the developer buydown from two years to one year. Review of Recent Actions August, 1885: The HRA selected the developer, authorized staff to negotiate a developers agreement and prepare a detailed develop-went plan, ,and approved ari Interest Rate Reduction Program. The program provides monthly housing payment assistance, initially from the developer, .and then from the HRA until, by following generally accepted loan underwriting standards, it is determined that the purchasers no longer need this assistance or nine years have passed from date of purchase, whichever occurs first.. September, 1985: Preliminary plans reviewed and approved by neighbors, the HRA and Planning Commission. The Planning Commission recommended the development area be ~~ designated a Planned Unit Development (PUD) for two family. residential structures. (The Planning Commission previously made a finding that the disposition of the property for duplex type housing-is consistent. with the Comprehensive Plan). October, 1985: Final plans reviewed and approved by neighbors, the HRA and City Council. The City Council approved rezoning and the special use permit for a PUD. Review of Developers. Agreement:. To proceed with this development, it is necessary for the HRA and George E. Branton Construction to enter into a sale and development agreement. A summary of the agreement follows: Developers Responsibilities: -to complete construction according to the final approved plans and specifications and applicable federal, state and local laws and regulations so that a closing on the sale of the dwelling units to a purchaser shall occur no .later than July 16, 1986. -demonstrate availability of equity capital and construction financing sufficient to complete the .improvements. A construction lender, Builders Development and Finance, Inc.. of Wayzata, MN has agreed to provide written evidence of a financing commitment prior to staff proceeding with the closing. Sub-contractors have agreed to accept payment for their work from the sale proceeds of a buyer. This is a common practice for this type of construction project. -to pay $11,580 to the HRA, which the HRA will utilize to reimburse TCF Mortgage Corporation for the mortgage commitment .fee previously .paid to secure MHFA 9.95 percent, 30 year fixed .r ate mortgage money. -to-pay a loan origination fee of 3-1/2 percent on behalf of a buyer as each unit is sold (approximately $2,100/ unit or $16,8D0 for all eight units). -to .provide additional financial assistance in the form of a "mortgage buydown". during the first year of buyer ownership to ensure that a moderate income family within the following annual incomes may qualify to purchase one of the four, -two bedroom homes: Family Size Maximum Income 2 to members 27,200 ~- to .purchase one of the. four three bedroom homes: Family Size Maximum Income 3 $23, 00 !~ $26,250 5 $27,900- 6 $29,550 (Note: this assistance would approximate $T00 to $1500 during the first year of ownersh=,~ ~~^~nding on the income of the family. Two income limits for different unit sizes are being used to comply with CDBG and MHFA requirements). -to market the units to qualified families. -to ensure that the dwelling units excluding land, do not exceed the following initial sales price by unit type: Unit A (two bedroom, one story) $65,9.00 Unit B (three bedroom, two story) .$68,900 Unit C Ctwo bedroom, split entry) $63,900 Unit D (three bedroom, split entry)$66,500 -to seek appropriate approvals from the City Council for the final plat and a common element residential subdivision plan -to pay to the HRA `(to be secured by letter of credit of $23,220) approximately $3,7.20 as a mortgage commitment fee if the sale of units does not occur on or before July 16, 1986. (This would ensure that. HRA funds paid to MHFA on behalf of the developer would be returned. If all sales occur prior to July 16, 1986, the HRA is reimbursed $3,720 from MHFA, and the developer is reimbursed $11,580 from MHFA through the HRA). -to reimburse the HRA for additional costs, secured by the same letter of credit for the first year interest buydown of approximately $12,000 for eight units and staff anal legal costs estimated at approximately $7,500 .associated with continuing the project if the developer failed to do so. -to assume "Homeowner. Association" responsibilities of site management and maintenance on behalf of the HRA until the final unit. is sold. -to hold a public "open house" to inspect the completed units -to install a sign during construction indicating the project is a cooperative effort of the. HRA and George E. Branton Construction Company. -to paint. the exterior of 920 and 92~ W. 66th Street in a color complimentary to the new units and satisfactory to the owners of 920 and 924 W. 66th St. -to pay real estate taxes payable in 1986 -to enter into the development and sales. agreement with the HRA no later than December 15, 1985: HRA Responsibilities: ~~ -provide clear title to ,the development site. -clear existing structures, driveway, and household debris from the site. (Site clearance was authorized by the HRA September 16, 1.985). -install sewer and water lines to the property line, a water line for a new fire hydrant, and. curb cuts for entrance drives. (These are anticipated expenses that. have been included in the approved HRA budget) -provide housing payment assistance in the second to ninth year of the project, aproximately $700 to $1500 per unit per year depending on income and details that are discussed later in the Interest Rate Reduction Program portion of this letter.. This is a change from the original plan reviewed by the HRA in August when the HRA was to make these payments in the 3rd through 10th years. -to assign Homeowner Association responsibilities as contained in the "Declaration of Covenants".(previously .reviewed and approved by the HRA) to the Developer. -sell the land to the developer far $1.00 and file a lien on each unit to be sold in an amount of approximately $12,000 per unit ($96.,000 total). (The amount will be more exactly determined by an appraisal after construction is completed in 1986).. Also, the agreement provides that the initial purchaser would repay the _ $12,000 (for the land)•when the property is sold in the future. -ensure. that the developer performs according to the development and sales agreement and provide a certificate of_completion when work is satisfactorily completed. Attachments to the agreement, not already referred to in this letter, include a quit claim deed in the form to be used at closing, final plans, the form of certificate of completion, the form of Letter of Credit., a development guide (as previously approved by the HRA), energy requirements of the .Minnesota Housing Finance Agency, and a release of HRA responsibility for discovery and removal of hazardous wastes on the site, should this occur. As discussed with the. HRA in August, 1985, the developer profit will be approximately 10 to 12 percent. This is an acceptable range. With potential costs of mortgage buydown assistance and structural changes recommended by staff, the profit margin may be even less. Mr. Branton has worked very hard, to keep costs and total price down as can be noted by comparing the original proposed prices of $59,900 to $66,900 to the maximum prices allowed in the development agreement of $63,900 to $.68,900. For this reason staff is recommending the reduction in developer buydown from two years of assistance to one year of assistance. The developer was initially requested to provide two years of assistance. .y- S Interest Reduction Program Two additional items referred to in the developers agreement, the "Interest Reduction Program Regulations" and "Escrow Agreement", require further discussion. When the HRA approved the Interest Rate Reduction Program in August, 1985, it was noted that even with attractive financing rates,. modest construction costs, and deferred land cost to the initial purchaser, it is not possible to assure affordability to persons with a moderate income as required by CDBG and MHFA regulations. .CDBG funds were utilized to acquire. the property. MHFA mortgage funds have been commited to the project. Thus, the very specific moderate income ranges noted earlier in this letter must be adhered to because of the involvement of CDBG and MHFA funds. Assuming a $60,000 mortgage at g.95 percent interest amortized for 30 years, homestead property. taxes based on an improved property with a'$75,000 value (i.e., structure and land), hazard insurance, and the monthly Homeowners Association assessment, the monthly housing payment would be approximately. $68g per month. Utilizing the current lender underwriting standard of 28 percent of income as the maximum percentage of income which can be allocated to a house payment, a household with a $23,000 _.._..._._ _. - --~ ---~-=income -~:-s-- $~,.'h-3g•__p-er-~morrth--=•s•h-or•t;-m~aet~rrg `~'aym~'~t ...:ate "~2~~;UDO-;~- $105 short; at $26,250, $76 short; at $27,900,.$38 short. An annual income. of approximately $29,500 is required before assistance is no longer needed. However this would prevent a majority of households having as many as six members from participating if there was no other assistance available. (Note: .The families which have purchased Richfield HRA housing and Minneapolis HRA housing have had average incomes between $2~I,OOO to $25,000). fihus, to ensure affordability, three funding sources have been identified: 1) Purchaser downpayment in excess of 5~ of the purchase price. This is a very difficult requirement for first time homebuyers to meet. 2) Developers "buydown", approximately $12,000 in the first year 3) Continuation. of the buydown for up to eight years by the HRA, the ultimate source of funds being the sale of assets held by the HRA and the investment of those assests to provide a revenue stream. The assets authorized by the HRA to be disposed of are 625 and 6429 Portland Avenue. They could be sold to the city for $182,783. If these funds were invested at 8 percent, over $14,000 would be generated each year. Howver, the sale and investment cannot occur until 19.87. The city has budgeted $15,000 for park land acquisition for 1986. The first buydown payments by the HRA of approximately $12,000 would also be G ~~ made in 1987 and interest earnings would not be available. Thus, the first payment could be made from the principle amount of the proceeds and the balance of $170,783 would be invested and would provide $13,663 per year at 8~. There are several details to be finalized for the escrow account that would hold the developer and HRA funds. Discussions through the end of the .year will occur with: the lender, TCF Corp.; the servicer, Rothchild Financial Corp.; the mortgage insurer, General Electric Mortgage; MHFA; and, the HRA. Based on what is known at this-time, it is recommended that: -following the .second year of assistance to the purchaser, the house .payment made by purchaser should increase by 5 percent each year (i.e., the amount of HRA assistance would decrease accordingly) until the assistance is phased out. (This is a change from what was recommended to the HRA). Previously, the housing payment would remain constant unless the income changed. Now, regardless of income, the housing payment would increase at a rate similar to inflation, but not too quickly to create a financial burden for the purchaser). -if the annual income (to be verified by an income check on an annual basis) exceeded $29,500 (or at a point where the housing payment is equivalent to _..M..~_ ...--_.. ~---__ _.__....__._..~_ ._..,__,._...,.~,,.2.$.~.:_of__i.neo,me}°-,°~.tYreA.as-s~-s-t~rrc~e__~roul<i _st.op.. _.....~ ._.~. These details would be negotiated with the various lending representatives in formulating a final escrow agreement. The results of these negotiations would require minor modifications in the wording of the Interest Rate Reduction Plan and Program Regulations. Note the attached Plan and Program for the drafted changes. The repayment of the HRA's interest reduction assistance requires further discussion. In August, the HRA requested that the current interest reduction repayment formula, omits interpretation, be modified. so that during a period of relatively high inflation the possibility for a windfall profit to a purchaser/seller be eliminated. The formula is discussed on page ~, Section F of the "Regulations" document which is attached. The formula is taken,. almost verbatim from~State Statute. More simply stated, the formula "looks" like this: (Sales Price of Property) ( HRA's Housing Payment Assistance) (-) total debt and equity X (downpayment, principal, interest payments). (-) exempt profits .Exempt profits is the amount of dollars which the HRA determines should be allowed to the benefited property owner as a return on their investment in the property. An appreciation rate benefit to the owner of 2 percent was selected. The HRA could recover only slightly more, if the rate was 1 percent or slightly less if the rate was 3 percent. 2 percent is approximately 1/2 of the rate of increase in the housing payment (i.e., 5 percent). Three examples are attached with this letter suggesting the impact of owning the property: (1) when there is minimal change in value over a short time; (2) rapid appreciation in a short time; and, (3) appreciation over a long period of time. The property owner is allowed to have a 2 percent appreciation each year. EXAMPLE 1 .Calculations for Example One (minimal change in value over a short time) result in a number less than "0". There would be no return to the HRA for its one year contribution of $768 in housing assistance payments (keeping in mind that the developer also contributed one year of assistance). The buyer takes a significant loss because of sales commission and mortgage discount points unless the HRA provides some protection from this in its "second .lien". ,~.. Calculations for Example Two (rapid appreciation in value over a short time) provides a $691 return to the HRA for its contribution of $768. The buyer nets approximately $822 more than the allowable appreciation of $3,000 after sales commission and discount points are accounted for. Example 3 Calculations for Example Three (appreciation over a long period of time) provides $135 return to the HRA for its contribution of $4,608 over a six year period. The buyer nets approximately $3,700 after sales costs and payment to the HRA are made. However, this is significantly less than the allowable .appreciation of $10,500. The cost of selling by the original buyer is not reflected in the examples. Thus, profit to the seller in Example Two and. Three is not actually $12,000 but $12,000 minus $8,178 attributed to sales costs on an $87,000 sale. $12,000 (net .proceeds from sale) (- 6,090)-7~ sales commission based on $87,000 sale price. (- 2,088)-3 points on mortgage of $69,600 3, 22 - Balance CJ The results of these examples indicates that even over a :six year period, the appreciation to the buyer is not significant enough to suggest a windfall. The formula establishes-the minimum housing payment recovery amount available to the HRA, but the HRA could take all the appreciation. However, it would be to the detriment of the buyer. These calculations do not take into account that there will be a graduated decrease in housing payment assistance as housing payments required to be made by the buyer are. increased by 5 percent every year starting in the third year. The purpose of the formula is to return interest. reduction assistance to the HRA, if warranted, but prevent placing the owner/seller at a financial disadvantage such that the ownership of the unit results in a significant loss of financial resources. A financial loss can be experienced because realtor commissions., seller closing costs, and interest buydown repayments can quickly exceed the sale price of the home. The principal on the first mortgage and the payment for the deferred land .cost are easily covered. However, original down payments and equity growth are lost to sales commissions and repayment of interest reduction assistance. The formula in the program regulations make it possible for the .HRA to ensure that the purchaser will not be placed in a risky financial situation should a sale occur in the future. It is recommended, following the public hearing, that the ., ~,._ . _ , .. ,~ _ . . ~ ~_... . ,.__ : ,...:W_~ ._..rv .._~w...~,~.~_..~_ .°A °,.~HR~A-~•-a•dopt .~tYre °at~tach~zY°°reso`l~x't`zon"~ttiich: -authorizes the sale of 910 and 1016 W. 66th Street, and 901 and 903 Rae Drive to George E. Branton Construction Company for $1.00, subject to a lien; -.acknowledges that the HRA has reviewed and approved the final development plan and specifications subject to approval of plans and specifications by the City Building Official and the issuance of a building permit; and, -authorizes the Chairman and Executive Director to execute a Development and Sales Agreement and, .the necessary documents for conveyance of the property at the .closing on the sale of the property to the contractor. -authorizes the modification to the Interest Rate Reduction Program Plan and Regulations. EXAMPLE ONE ~` Purchase Price = $75,000 Sales Price = $77,000 Downpayment = $.1,$00 Mortgage = $61,200 HRA land lien = $12,000 HRA-monthly contribution = $ 6~ ($768/year/ 1 yr =.$768) term held before sale = 2 yrs. $77,000 Total ;-(-)$61,200 debt & --; (-)$12,000 equity i_(-)$ 1,800 2,000 -(-)$ 3,000 Exempt Profits-- ~_ Sales price Mortgage HRA lien downpayment Net proceeds from sale Allowable appreciation of 2~ per year based on original. purchase price -$ 1,000 Balance .Application of formula results in negative balance, thus, .....,. ~ ,.., _~~.,~.;,. .,..~~.,rr~o~-ne~cY~o-..,e.amp-lyet.e,W..~omptxtat-i,on,..a.s....th~ereM}raould.,,.be...~n,o .return ..W.,..... to HRA. L~- / !~ EXAMPLE TWO Purchase price = $75,000 Sales price = $87,000 Downpayment _ $ 1,800 Mortgage = $61,200 HRA land lien c $12,000 HRA monthly contribution = 6~+ ($768/year/1yr,=$768). term held before sale = 2 yrs. $87,000 Sales price. Total ;-(-)$61,200 Mortgage debt & --; (-)$1.2,000 HRA lien equity ;_(-)$ 1,800 Downpayment 12,000 Net proceeds from sale Exempt ;- _ Profits--i (-)$ 3,000 Allowable appreciation of _ 2~ per year based on original purchase price. 9,000 Balance Formula= $9,000 x $768 (total HRA payments _ $691 _.., .. .. _ ~.... ,.._.n.w.,~. .. .1, 0'0'`' °dowripayment ,+ _ 20.0_. (,.e.s~,,...to~a1 .._.,~_ interest + principal payments) . y-~/ EXAMPLE THREE Purchase price _ $75,000 Sales price = $87,000 Downpayment _ $ 1,800 Mortgage = $61,200 HRA land lien = 12,000 HRA monthly contribution = $ 6~+ ($768/year/6 yrs $x+,608) term held before sale = 7 yrs. $87,000 Sales price Total ;-(-)$61,200 Mortgage debt & --; (-)$12,000 HRA lien equity ;_(-)$ 1,800 Downpayment $12,000 Net proceeds from sale Exempt ;-(-)$10,500 Allowable appreciation. of 2~ Profits ;_ per year based on origina purchase price 1,500 Balance Formula = $1,500 x $x+,608 (total HRA payments) _ $135 1, 00 downpayment + .51,000 (interest principal) Respectfully submitted, ohn G. Ca twr' ht Executive Dire for JGC/eja HRA RESOLUTION NO. ~ ~~-- RESOLUTION AUTHORIZING THE SALE OF 910 AND 1016 W. 66TH STREET AND 901 AND g03 RAE DRIVE AND ENTERING INTO A DEVELOPMENT AND SALES AGREEMENT WHEREAS, the Housing and Redevelopment Authority (-HRA.) in and for the City of Richfield owns the real property located at 910 and 1016 W. 66th Street. and 901 and 903 Rae Drive, and legally described on attachment A, and WHEREAS, the existing structures on the property are substandard and deteriorated as to condition-and use, and WHEREAS, the HRA has authorized the removal of .those structures in preparation for new development, and WHEREAS, a developer, George. E. Branton Construction company (Developer) has submitted construction plans and specifications for developing eight duplex type dwelling units for families, to be built on the cleared property, and WHEREAS, a Development and Sales Agreement has been prepared which perscrbes the conditions of the sale of the property to the developer and the development and sale of the completed dwelling units, and WHEREAS, to assist the sale of the units to moderate income families, the HRA has authorized an Interest Reduction Plan and Program Regulations that identify the manner in which housing assistance will be provided by the HRA and Developer to qualified. purchasers, and WHEREAS, changes have been made to this Plan and Program Regulations. NOW,~THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota; That the HRA authorizes the sale of 910 and 1016 W. 6.6th Street and 901 and 903 Rae Drive to the Developer for $1.00, subject to a lien for the value of the land and the conditions of the Development Agreement. That the HRA .has reviewed and approved the final development plans and specifications submitted by the Developer contingent on acceptance by the City Building Official and the issuance of a building permit. That the HRA authorizes the Chairman and Executive Director to execute a Development and Sales Agreement and related documents with the .Developer. 2 ~/- i} That the HRA authorizes the Chairman and Executive Director to execute the necessary documents providing for the conveyance of the property to the Developer and to act to convey the property once a written letter of commitment to finance the construction-has been provided from the construction lender. .That the changes to the Interest Reduction Project Plan and Interest Reduction Program Regulations, as noted in HRA Letter No. , are approved. Passed by the Housing and Redevelopment Authority in and for the City of Richfield this 18th day of November, 198.5. Thomas E. Harms, Chairman ATTEST: Joan Helmberger, Secretary • • 9-'y ATTACHMENT A LEGAL DESCRIPTION 1. Lot 1 Rae Addition according to the plat thereof located in the County of Hennepin and State of Minnesota All that part of Section 28, Township 28, Range 24 in the County of Hennepin and State of Minnesota, described as follows, to wit: Beginning at a point marked "Judicial Landmark" on the east and west quarter section line of said section distance X10 feet west measured along said line from the east quarter corner of said Section 28; thence south at right angles to said east and west quarter section line 7~.6 feet to a point on the original Military Reservation line, which point is 83.5 feet SEIy measured along said reservation line from its intersection with the east and west quarter section line of said section said. point being marked by a monument marked "Judicial Landmark"; thence South 79 degrees .38 feet W 140.14 feet to point marked "Judicial Landmark"; thence South 7 degrees 10 feet west 115.~4~ feet to a point in the traveled road; thence north 71 degrees 32 feet west X405.09 feet to point of beginning of the tract hereby to be described; thence continuing North 71 degrees• 32 feet west a distance of 140.53 feet; thence north 13 degrees east a distance of 1b5.9 feet; thence south 83 degrees 50 feet east 140.9 feet;, thence south 13 degrees west a distance of 196.11 feet to point of beginning. (Also known as Outlot A, Rae Second Addition). 2. Lot 6 and 7 Rae Addition according to the plat thereof on file or of record in the office of the Registrar of Titles in and for Hennepin County. (Also known as Outlot B, Rae Second Addition}. • ~_~ .. ~/~5 HOUSING DEVELOPM~T PROJECT PLAN- INTEREST REDUCTION PROJECT PLAN FOR THE FIOUSING AP7D REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA- August 9, 1985 Prepared by: LeFevere, Lefler, Rennedy, .O'Brien & Drawz 2000 First Bank Place West Minneapolis, MN 55402 (612)333-0543 ~'- !b HOUSING DEVELOPMENT PROJECT PLAN i .INTEREST REDUCTION PROJECT PLAN A. Statutory Authority The Housing and Redevelopment Authority in and for the City of Richfield (the "Authority") was established in accordance with the Municipal Housing and Redevelopment Authority Act, Minn. Stat. Section 462.411, et. s_eg. (the "Housing Act"), aa`n~is authorized by the City of Richfield (the "City") to undertake projects thereunder. B. Statement of Public Purpose The Authority has determined that there is a need to provide. housing opportunities for persons of low to moderate income, as de-fined by the U.S. Department of Housing and Urban Development (HUD), the Minnesota Housing Finance Agency (MHFA), or by the Authority pursuant to Section 462.445, Subdivision 1(8} of the Housing Act. The Authority finds that property exists in the City which would provide an area suitable for. the constriction of decent, safe and sanitary housing affordable to low and moderate income persons. It " is further found and declared that areas exist which are susceptible of providing persons of low and moderate income with home ownership opportunities, with appropriate govern- mental subsidies and assistance. 2n order to alleviate the housing shortage; in order to foster development and use of vacant, .underutilized, open or undeveloped real property; in order to provide low and moderate income persons with home ownership opportunities; and in order to insure the sound growth, development and financial .stability of the city there is a need. for the Authority to exercise the powers granted by the Housing Act. The exercise of said powers are hereby declared to be public uses and purposes for which private .property may be acquired, public money spent,- and _ other powers exercised. C. -Project, Descriation The project to be undertaken by the Authority is a housing development project pursuant to Section 462.421, Subdivision I4 of the Housing Act. The project is also an interest reduction Program (the Program) as described in .section 462.445, Subd. 10 of the Housing Act. .Pursuant to the Program, the Authority intends to I y- D. E. (a) pay in periodic payments or in a Lump sum payment any or all of the interest on loans made pursuant to chapter 462C;_or (b} pay in periodic payments or in a lump sum payment any or all of the interest on loans made by .private lenders to purchasers of housing units. The project to be carried out by the Authority will involve removing structures .from two parcels owned by the Authority. The benefit of the lowered cost at which the Authority intends to convey. the land will be passed through to the unit purchasers who will repay the subsidy at the time of unit resale or satisfaction of their mortgage. The develop- er will construct four two-family. dwelling units (total of 8 units) on the site for sale to persons of low and moderate .income. Mortgage money will be provided from proceeds of the sale of housing .revenue bonds by MHFA through the Municipal Participation Home. Mortgage Loan Program. Sneer- est rates~on the mortgages shall be lowered through the application of funds available to the Authority. Pursuant to Seetion 462.445, Subds. 11 and I2, the Authority has promulgated regulations pertaining to eligibility for participation in the Program and shall require purchasers to enter into an agreement. relating to resale of the property. Project Location _..... The project shall be located at the northwest intersection of 66th Street and Rae .Drive. The legal descriptions of the parcels included within. the project are included~in Exhib- it A, which is attached hereto. Public Actions to Im lament the Project ---- - „~_ The following actions have been or will be undertaken by the City and the Authority in order to facilitate the project: 1. The City will rezone the property to Planned Two Family Residential {PMR-1) district and will issue a condi- tional use permit for-the project. 2. .The Authority will adopt a Project Plan relating to the housing development project and interest reduction project. 3. The Authority will pass the benefits of lowered land costs through to the unit purchasers. 4. The City will approve the plat for the. project. _2 y ~~ 5. Covenants, Conditions and Restrictions, Articles of Incorporaticn and By-Laws of the homeowners' associa- tion will be approved by the City. 6. The Authority will enter into the necessary agreements with the City, the developer, MHFA, the lender (TCF Mortgage Corporation? and other parties. F. Land IIse The-property to be included in the housing development and interest .rate reduction. project is zoned single family residential and will. be rezoned to Planned Two Family Residential. G. Review by Planning Commission Pursuant to Minn. Stat. Section 462.356, subdivision 2, the planning commission~as or will review all aspects of the project, including acquisition of property, replatting and rezoning, and has or will. report to the city council regard- ng the consistency ,of the _p=ojee.t._tcz__,.the_._C.ty.! s...:.comprehen--- - - sive plan: H.~ Finarcnq of the Interest Reductions Proms aim The developer~w~ll finance interest reduction payments for the first t year of the project. After the ~ ~tAi~- anniversary to of the closing of each unit, the Authority will .finance interest .reduction payments through funds .available to it. The Authority intends to utilize interest earnings from the sale of real estate cu=gently owned by the Authority. However., the source of funds for the Authority's participation in the Program may vary over the life of the Program. • - _ 3 ~/-/y EX~BIT A PARCEL 1 -Lot 1 Rae Addition according to the plat thereof located in the County of Hennepin and State of i~innesota -All that part of Section 28, Township 28, Range 24 in the County of Hennepin and State of Minnesota, described as follows, to wit: .Beginning at a point marked "Judicial Landmark" on the east and west quarter section line of said section distance 410 feet west measured along said line from the east quarter corner of said section 28, thence south at right angles to said east and. west quarter section line 74.6 '.feet to a point on the original Military Reservation _ _ _ _ _ _lne, _whch _, point _: is. 8~. ~ ~e~_..SE.Iy me~sured__alor~.-said-~~se-r~a~ion- ~~r-~-f-ra~r ---- its intersection with tl~ east and west quarter section line of said section said point being marked by a monument marked "Judicial-Landmark" thence South 79 degrees .38 feet W 140.14-feet to point marked "Judicial Landmark" thence South .7 degrees 10 feet west 115.44 feet to a point in the traveled road; thence north 71 degrees 32 feet west 405.09 feet to point of beginnir~ of the tract hereby to be described; thence continuing North 71 degrees 32 feet west a distance of 140.53 feet; thence north 13 degrees east a distance of 165.9 feet; thence south 83 degrees 50 feet east 140.9 feet; thence south 13 degrees west a distance of 190.1 feet to point. of beginning. Parcel 2 -Lot 6 and 7 Rae. Addition according to the plat thereof on file or of record in the office of the Registrar of Titles in and for Hennepin County. • ,~-.~ INTEREST REDUCTION PROGRAM REGUT..,ATIONS FOR THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE. CITY OF RICHFIELD, MINNESOTA. August 9, 1985 Prepares by: LeFevere, Lefler, Kennedy, O'Brien & Drawz 2000 First Bank Place West Minneapolis, MN 55402 (612)333-0543 • • ya/ RICHFIELD HOIISING AND REDEVELOPMENT AIITHORITY .INTEREST REDITCTION PROGRAM REGIILATIONS A. Statutory Authority. The Richfield Housing and Redevelopment Authority (the "Authority") has determined that. it is in the public inter- est to undertake an interest reduction program (the "Pro- gram") in order to lower the -effective interest rate on certain loans made available by the Minnesota Housing Finance Agency (the "M$FA") through its- Municipal Participa- tion Home Mortgage, Loan Program,. .and thereby 'assist in providing affordable housing. to persons and families of low and moderate income. Pursuant to Minn. Stan. Section 462.445, Subd. '10, the Authority is authorized to implement an interest reduction Program. The .Program. is a means by which the Authority may reduce effective interest rates on loans made to finance the purchase of dwelling units in a development and assist in providing housing for persons of low and moderate income at prices within their means.. In developing the_ Program, the Authority has considered the availability and affordability of other governmental pro- grams and of .:private market .financing, and has determined that there is a need for additional .affordable mortgage credit in the form of interest reductions to encourage the construction and .enable the purchase of housing units within the city. The' Auuthority has determined that financing for the housing units is not otherwise available from private lenders -upon terms and conditions which will be affordable to persons of low and moderate income.. B. Definitions Assisted Property: property the acquisition- of which is financed with a loan, with respect to which the effective interest rate is or will be reduced by payments made pursu- ant to the .Program. Authority: the Housing and Redevelopment Authority in and for the City of Richfield. City: the City of Richfield, Minnesota.. Gross Income: Gross .family income of all intended residents o t e Assisted Property, including income from all sources and before taxes or withholdings, except for the following: I. the income of any person who will .reside in the home who is under Z8 years of age or is a full- 1 . ! ~,~i time student and who is related by blood, adoption or marriage to a resident income .recipient or his or her spouse.; and . 2. non-recurring income, as determined by the Program Administrator.. Interest Reduction Payments.: paXrnents made by the Authority to reduce the effective rate of interest on qualifying Mortgage Loans in the amounts and at the times set forth in these regulations.. MHFA: the Minnesota Housing Finance Agency.. Mortgage Loan: a Mortgage Loan made with respect to the Assisted Property under the .Municipal Participation Home Mortgage. Loan Program. Manic al Partci ation 'Home Mortaa a .Loan Pro ram: the specia progra:a by MHFA under zts 1985 Singe Farm y Mort- gage Loan Program. Origination Agreement: a mortgage origination and sale _~.. .. ~_ ~gseement between the Author-tt~°-mv .~:h~ . PrQ?~az~...'Ad.:iu.n%st~ato.~~:.~ . ~_ ". ,.. " . _,.~ , n.. "` '""` ~ "" ~"°"° and'" }°osgiatoi`s ~~ of 'mortgages (TCF Mort a e Co g g rporation? under the Municipal Participation Home .Mortgage Loan Pro- gram, and acoepted by the Trustee of the Municipal Par- - ticipaton Home Mortgage Loan .Program. Program: the Authority's interest reduction Program. Program Administrator: the Program Administrator of the Municipal Participation Home Mortgage-Loan Program pursuant to a program administration and servicing agreement between the Authority, the Program. Administrator, and accepted- by the Trustee of: the Municipal Participation Home Mortgage Loan Program. . Qualifying Mortgage Loans: mortgage loans which meet the requirements set forth in sections D, E, F, G and H of these regulations.. Trustee: the Trustee selected by MHFA for administration of Mortgage Loans under the Municipal Participation Home Mortgage Loan Program. C. Maximum Amountand_Duraton of Assistance 1. After the anniversary. date of a qualifying Mortgage Loan, the Authority-will use funds available to it to rake interest reduction payments to reduce the effective -rate .of interest to the mortgagors pn quali- fying Mortgage Loans by the amount for which the .2 ~~ ~~ ~~- _ ~~ ~ ~~ ~~ mortgagor qualifies pursuant to section E of these regulations; 2. 1-^- S. Interest reduction payments will not be made after the time the aggregate of principal, interest, taxes. and insurance on the mortgage _is equal to or .less than 28 percent of the mortgagor's gross income; Interest reduction payments will not be made after the time when title to the Assisted Property is transferred because of sale or any other transaction, but subse- quent purchasers will be eligible to qualify for .participation in the .Program; ~~. Interest reduction payments will not be made if the ... ~._. ~.._~~ ,~} ,..~. w. gtra la. fy~.ng~ -Mort __ ~;W _ .~....._._.~._.m....~_w~...~ .~~,..._ .,_~., ...__ ,~ _ .~..~ . _.. ~ . R._ _ - `Loan's' Mortgage Loans which meet the following requirements .shall be eligible for assistance under the Program.: Assisted Property ceases to be owner-occupied, which shall .include. property which is leased for less than six months or longer than one year; b~ The Authority shall annually re-evaluate all mortgagors participating in the Program to ensure continued qualification under the Authority' s income liraitations~,~.o ,. ~~ G z . 1. The Mortgage Loan must have been purchased by the Trustee selected by MHFA for the Municipal Partcipa- ton Home. Mortgage Loan Program; and 2. .One :hundred percent of the funds appropriated by t_he Authority for- interest reduction payments under the Program in.any year must be used with respect to loans made to persons or families with gross 'incomes qualify- ing under the guidelines established pursuant to .• .Section E of these Regulations. E. Qualifying Participants Participants in the Program shall qualify under either of the following criteria: 1. Gross annual income shall not exceed $21,000 for families of -not more than two persons,. $23,000 for families of not more than three persons, $26,250 for .families of not more than four persons, $27,900 for families'of not more than five persons, anal $29,550 far families of not more than six persons; or 3 -~ ~y 2. Grass annual income shall not exceed 80 percent of • MHFA's eligible income or $27,200, regardless of family size, as adjusted from time to time by the Authority to be consistent with HUD Section 8 program income guide- Iines. Fifty percent of the units shall be reserved for persons qualifying under subsections 1 above and 50 percent for persons qualifying under subsection 2 above. F. Program Recnzired Agreements ~_ In order to obtain assistance under the. Program an applicant must execute an .agreement providing that upon the sale or transfer of the Assisted Property, the Authority- shall be paid an amount equal to at least the sale price of the property, less the downpayment, any payments of principal, other payments made to construct,._acquire or improve the property and -any outstanding liens or mortgages securing loans, advances, or goods and services provided for the construction, acquisition or improvement of the. property, less the- amount, if any, which the Authority determine s should be allowed for the: benefited property owner as a _._.... ~ _.......;~.... return.,_.on_ _:ths --•benef~ted , F~:~`~.P~.,~t'1'°_ow3re-r-~ s~.,'~;zzvestme~;t;:':.in:.-the;.:.: ~..:....M~___- .,. °' "" '"" p"r'ope=ty:" This amount- shall be multiplied by a fraction, the numerator of which is the interest reduction payments '~ made by the Authority and the denominator of which is the ' total of the downpayrnent, alI principal and interest pay- meats including any portion paid by the Authority., and .other payments made to construct, acquire or improve the property.. Authorized improvement expenses are expenses,~in a maximum amount of $3,000, paid or incurred in connection 'with an improvement to the Assisted Property of a sort which ~in- creases the market value of the home. Such improvements may include the addition of a -room, installation of a dec?c, the installation of a fireplace, addition of central air condi- boning, finishing unfinished Living space or any other improvements approved by the Authority. Prior to incurring any improvement expense, a mortgagor may seek a written opinion .from the Authority regarding whether the expense is an authorized improvement expense. Expenses incurred to .maintain the Assisted Property, such as .the replacement or .repair of any part thereof, do not constitute authorized improvement expenses. Upon the sale or transfer of the Assisted Property, the mortgagor must provide the Authority with receipts, or other proof satisfactory to the Authority, of any authorized improvement expenses. G. Pledged Savings Account Zn order to obtain assistance under the Program an applicant must also execute any documents necessary to make the Mortgage Loan a pledged savings account :aortgage Loan. Zf 4 _.: such Mortgage Loan .meets alI the requirements of Sections D, E, G and H of these Regulations, the Authority will fund the; pledged savings account with funds available to it. H. Security The obligation to make the payment detailed in the program required .agreement shall be secured by a lien against the Assisted Property.. Such interest in the ;property, at the option of the Authority, may be subordinate to other inter- . ests in the property,-and. will be subordinate to the Mort- gage Loan made with respect to the Assisted Property under the Municip~.I- Participation Dome Loan mortgage Program sponsored by MHFA. In all cases, an appraisal shall be used to establish the sale price. H. Source of Funds -_~ The Authority shall use funds available to it to finance interest reduction payments. After the expiration of developer-financed interest reduction payments,. the Author- ity intends ~„Q ~inazu~ „its.,..coa~tr~but~ons by - . __.._ ,.~r.,. ... W. e.;~t ~ ~earn~ed "r-from ~` -the':.;°~ znvestnreat_. `o ~ ...:funds'.: received from the ...4._ a~,. sale of certain real estate owned by the Authority. However, the source of funds used by the Authority may vary during the eight .year period during which -the Authority intends to participate in the Program. I. Reporting On or before January 2 of each year during which the Program is in existence, the Authority shall report to the Minnesota Department of Energy, Planning and Development a description of the Program established and a description of the recipi- ents of interest reduction assistance. 5 £ ; ` } v / CITY OF RICHFIELD, MINNESOTA Office of Executive Director HRA Letter No. 6~ Agenda November 18, 1985 Housing and Redevelopment Authority Commissioners City of Richfield Subject: City of Richfield Contribution to Tax Increment Financing Project Dear Commissioners: The League of Minnesota Cities and NAHRO have joined tog-ether to support tax increment financing. Proposed legislation in 1986 and beyond may eliminate tax increment financing. The law firm of Holmes and Graven has been retained by the League/NAHRO as a consultant on this project. The fees for Holmes and Graven are to be paid on a voluntary contribution basis-from cities involved in tax increment financing. These contributions will defray the costs of employing Holmes and Graven while the League would provide staff and other services to the effort on behalf of the cities who will benefit .from the overall activity, but are not currently engaged in the use of tax increment finance. Riehfield~s voluntary contribution amounts to $1,55.00, payable in 1985. All cities which had tax increment districts in 198 payable 198.5 tax year are being asked to proportionally contribute to the cost of the program. It is recommended that the HRA authorize the payment of $772..50 (50% of the voluntary contribution}, and request that the remaining $772.50 be -paid b.y the City of .Richfield. p ~tfu~sxtQnitted, ~~// John G . /Car wrigh Executive Di c;to JGC/eja ~-teague of . ~. (. Minnesota Citi¢s ~~~nn m~,na.o+~,Y ~,~ o~,d Gxnrrxx~ DwwioExr,o~,r n~ a'as Increment Financing Project October 3I, 1985 Ms. Jean Mithcell Finance Manager- 6700 Portland Ave. Richfield, MN 55423 Dear Ms. Mithcell: 3- z Earlier this month we informed cities that the League of Minnesota Cities and the Minnesota Chapter of the National Association of Housing and Redevelopment Officials (NAHRO) had joined together to support tax increment financing. A program of analysis and representational activities was developed. This step was taken in response to resolutions adopted by city officials who s tidied the possibilities of legislative action by the legislature in 1986 and beyond. The Boards of Directors of both the League and NAHRO reviewed the proposal and unanimously endorsed the program. The League/NAHRO committee retained the law firm of Holmes -and Graven as a consultant. Pursuant to this program cities have already received a questionnaire on tax increment finance usage which will provide data for a comprehensive study. City officials will recall that the League/NAHRO program is to be financed by voluntary contributions from cities involved in tax increment finance. These contributions will defray the direct costs of employing Holmes and Graven while the League would provide staff :and other services to the effort on behalf of the cities who will benef it from the overall activity, but are not currently engaged in the use of tax increment finance. This. letter officially requests your financial contribution in accordance with the enclosed invoice. Several alternatives were considered before establishing the assessment formula. All cities which had tax increment districts in 1984 payable 198S tax year are being asked to proportionally contribute to the cost of the program. The two factors-used .are the total assessed value in .tax increment districts and the total assessed value of your city. Both of these factors have been adjusted by sales ratio. Statewide totals for all cities using tax increment were established .along with each city's percent of that total. Half the cost of the project is assessed based on each city's proportionate share of the total assessed value of the cities involved. The factors used and the resulting assessments are noted in the attached list. We sincerely hope that your city will comply with its voluntary assessment to help preserve tax increment as a viable development tool financing in the .future. Sincerely, Susan Edel LMC President Sincerely, Nancy Reeves NAHRO President -~- ~-~ TIF TIF AAV AAV Total ,fie City Factor Assesseent Factor Assess~ent ASSesseent _~_ . Anoks County , 12 AtiOKA 0.2088E 11L71 -0.5707% 305.35 ~ 417.06 14 BLAINE tJT) 0.2843% 15208 i.llT3x 597.76 ~ 749.84 it CO`I~IBIA FEI6HTS 1.5096E 807.61 0.6446% 344.84 ~ 1,152.46 i8 COON RAPIDS 0.2449E 131.00 1.3802% 738.40 ~ 869.40 20 FRIDLEY 0.9211% 492.77 1.4872% 795.64 ~ 1,288.41 21 HAK LAKE 0.0617E 33.02 4.2618E 140.08 ~ 173.11 26 SPRIt~ LK PK (JT) 0.1539E 82.32 0.2105E lI2 60 194.93 Carver County 52 CHAN1 (JT) 1.7047% 91204 0.3583E 191.b9 1,103.73 53 CFIRSKR O.QSbOt 29.96 0.3458x- 185.02 ~ 214.98 b0 HACONIA 0.3019% 161.52 0.1050% 56.15 ! 2I7.bT 61 NATERTDiN 0.0672E 35.97 0.0552% 29.54 45.51 Dakota County 83 APPLE VAilEY 0.1852% 99.07 1.0016E 535.84 634.90 84 BtiRNSViLLE 0.0457E 24.47 P. 3164% 1,239.29 ~ 1, 263.76 87 FAAMIN6TON 0.1791% 95.84 0.1664% 89.01 ( 184.86 89 FgSTINGS tJT) 0.2662E 142.42 0.4649% 248.73 391.14 90 INVER GROVE FITS 1.1859% b34.44 0.7353E 393.39 1,027.83 9i LAKEVILLE 0.3496% 187.03 0.6684x. 357.58 ~ 544.60 94 Mc~@OTA FEI6HTS 0.4450E 238.09 0.5330% 285.17 1 S?3.26 98 T 0.2782E 148.84 0.3192E 170.79 ! 319.63 99 SOUTH 5T PAUL 1..5869E 848.99 0.7579% 405.45 1,254.44 102 iBST ST PAlI~ 0.0080E 4.27 0.8672E 463.95 ~ 468.22 nenneoin County 114 BLOOMINGTON 0.9207E 49255 5.2813E 2,825.48 ) 3,318.02 115 BROOKLYN CENTER 0.1168E 6250 1.3395E 716.65 779.14 Ilb BROOKLYN PARK 1.5000E 802.52 1.7436% 93285 1,735.37 120 CRYSTW. 0.1818% 97.24 0.8413E 450.12 547.36 122 DEEPHAVEN 0.1078E 57.b7 0.2702E 144.55 ! 20221 123 EDEN PRAIRIE 4.1051E 2,196.24 1.6168% 864.99 ~ 3,061.23 124 EDINA 2.0911% 1,118.71 4.1108E 2,199.29 t 3,318.01 • 126 80LDEN VALLEY 2.3748E 1,270.54 1.6473E 881.32 2,151.86 130 EDPKINS L 1658E 623.71 0.8628% 4bi.58 i, 085.29 132 LDN6 LAKE 0.1186% 63.45 0.0893E 47.76 ~ 111.21 134 MAPLE GROVE 0.2253% 120.53 1.1030E 590.10 710.63 135 MAPLE PLAIN 0.0426% 22.78 0.0625% 33.45 56..23 138 KINtB:APOLiS 39.7185E 21,249.39 36.6815% 8,924.62 1 30,174.02 140 MItBET'O~0(R 0.8976% 480.21 3.0523% 1,633.00 ~ 2,11320 142 MOUND 0.0003E 0. l5 0.3840E 205.45 205.60 143 MEN FDPE 1.1261% 60245 0.9895E 529.40 1,131.85 146 PLYMOUTH 0.1978E 105.84 2.2772E 1,218.30 ! 2,324.14 147 RIClfiELD 1.4062% 75232• 1.4817E 792.68 ~ 1,545.00 148 ROBBINSDALE 0.6740E 467.60 0.5205% 278.44 ~ 746.04 153 ST ANTHONY (JT) 0.0231E 1234 0.4013E 214.71 227. Q5 155 S'T LDUIS PARK 2.0502E 1,096.84 2.5945E 1,388.05 ! 2,484.89 151 WAYiATA 0.3949E 211.29 0.3938% 210.68 421.96 Rtesey County \ 177 fAL1i0N FEI6HT5 0.0531% .26.39 0.1965% 105.11 133.50 • 183 NE>i BRISHTON 0.1828E 97.78 0.9933% 531.39 ~ 629. I7 185 NORTH ST PAUL O.i409lc 75.38 0.397bx 212.73 .288.11 186 ROSEVILLE 0.2027% 108.46 2.1700E 1,160.94 1,269.40 190 ST PRUL 11.3318E 6,062.52 10.5712E 5,653.58 ~ 12,:718.10 192 iHITE BEAR LAKE. 0.0891% 47.65 0.386E 448.65 ~ 496.30 -~- ~/ TIF 7IF AAV ARV total Code City Futon AsseSSient Futon Assesssent iksesseent , Scott County Z17 JORDAN 0.0465E P4.86 0.0832E 44.58 ! 69.38 221 SAVAGE 0.5213E 278.89 0.2523E 134.99 ~ 413.88 222 SHAKOPEE 1.3587E 726.93 0.5805E 310.55 i 1,031.48 Washington County 245 FOREST LAKE 0.03401E 18.18 0.2145E .114.76 ~ 132.94 -252 MAFtTOP6:DI 0.0578E 30.91 0.1779E 95.18 12b.OB Benton County 446 FOLEY 0.0288E 15.42. 0.03371 18.01 ~ 35.00 451 SRtM RAPIDS 0.2219E 118.70 0.1375E 73.57 192.26 Blue Earth County 511 GOOD ?FtdVDER 0.0010E 0.56 0.0089E 4.74 35.00 512 LAKE CRYSTAL 0.0331E 17.72 0.4391E 20.90 t 38.62 514 MANKATO (JT) i.b091E 860.81 0.86677c 463.67 i 1,324.53 515 NAPLE'[p~! 0.0063E 3.40 0.4272E 14.56 ~ 35.00 ~o~m- County 547 SLEEPY EYE 4.0282E 15.08 0.0724E 38.73 53.81 548 SPRIt6;FIELD 0.0316E 16.93 0.0438E ?3.41 40.34 Carlton County S/4 BARtJU4 0.0028E 1.48 0.0061E 3.25 ~ 35.00 576 CLOQtET 0.0265E 14.18 0.3105E .166.11 t 180.30 579 MLmSE LAKE 0.0022E 1.19 0.0246E 13.16 35.00 Cass County ~ RJR 4.0002E a. 10 0.4065: 3.46 35.00 ChipPera bounty b83 PgN'TEVIDEO -0.1016E 54.34 .0.1233E 65.97 ~ 120.31 Chisago County 707 RUSH CITY 0.1223E 65.44 0.0441E P3.62 t 89.05 Clay County 757 lOQRHEAD 0.8632E 461.77 0.6751E 361.15 822.93 Cottonwood County d30 MOII~iTAIN LAKE 0.0183E 9.81 0.0360E 19.25 ~ .35.00 833 WINDOM 0.0473E 25.29 0.1042% 53.62 78.92 Dodge County 910 DODGE CEh7ER 0.0485E 25..93 0.0426E 2Z 79 ~ 48.71 Douglas County 941 ALEZANDRIA 0.0014E .0.75 0.ffi56E 152.80 1 153..55 951 OSAKIS (JTI 0.0029E 1.54 0.0260E 13.91 35.00 Faribault County 978 GLEE EARTH 0.0122E b.50 0.0952E 50.92 ~ 57.42 987 WELt.S 0.0475E 25.44 0.4572E 30.60 56.04 988 WIMEBA60 0.0031E 1.65 0.0362E 19.38 35.00 ~illoore County 1020 CHATFIF~.D (JT1 0.0008E 0.43 0.0474E 25.37 35.00 1027 PRESTON 0.0015E 0.81 0.0263E 14.09 ~ .35.00 1028 RIlSFtFORD CITY 0.0921E 49.27 0.0304E 16.29 b5.56 freeborn County 1059 ALBERT LEA 0.0426% x.79 0.3182E 277.21 ~ 300.00 1069 t~l.L.ANDALE 0.0024E 1.28 0.0106E 5.67 35.00 hue County 1f02 CAN~1 FAILS 0.0427E ?,2.86 0.0953E 50.97 ~ 73.83 1105 KEtiYON 0.0047E 2.51 0.0372E 19.91 35.00 1107 PINS ISLAt~@ IJT) 0.0233E 12.48 0.0551E 29.48 41.96 1108 RED WINS 0.6563E 351.10 1.1554E 618.22 969.22 f • • TIF 'RF AAV AAV Total ~, S Code City Factor iiasessaent Factor Assessaent . Assessoent 1120 ZU(BRQTA 0.08661 46.32 0.06931 37.09 ; 83.41 Euston County 1170 LA CRr~tf 0.02631 14.06 0.08701 46.57 ; 60.:63 Isanti County 1230 CAl~RID6E 0.16571 88.66 0.10921 58.42 ; 147.09 Itasca County 1281 BOVEY 0.00871 4.68 0.00941 5.02 ! 35.00 1286 GRAND RAPIDS 0.0012' 0.29311 156.79 ; 157.44 Jackson County 1323 JACKSON 0.48031 42.87 0.06961 37.22 ; 80.19 Kanaber County 1330 O6ILVIE 0.00231 1.21 0.00521 2.80 ; 35.00 Kandiyahi County 1386 NEW LONDON 0.03521 18.84 0. 41671 8.91 ; 35.00 1393 WILLMsBt 0.36591 195.75 0.45691 244.45 ! 440..20 Kittson County 1431 HIiLLOCK 0.00171 4.92 0.02451 13.10 ; .355.00 1434 KARLSfAD 0.03081 ib.46 :0.01621 8.68 ; -35.00 Lac Qui Farle County 1482 DAWSON 0.08161 43.65 4.05251 28.10 ; 71.75 1484 MADISON 0.00161 0.85 0.:04411 23.59 35.00 Le Sauer County 1536 LE CENTER 0.00681 3.62 0.04041 21.64 ; 35.00- 1537 LE St141R 0.19301 103.25 0.10981 58.76 ; 162.01 IS39 NEW PRA6tE WT1 0.13331 71.31 0.09511. . 50.90. ; 122.21. Lyon County 2594 'WTTONil00D 0.06561 35.08 0.02131 11.38 ; 46.46 15'99 MARSNRLL 1.02181 546.64 0.35721 191.12 ; 737.7b McLeod County 1627 6LENEOE 0.15051 -80.49 0.12831 68.62 ; 149.12 1628 fiiITCHINSON 0.61781 330.55 0.32151 111.98 ; 50253 1633 WINSTED 0.0277% 14.81 0.04301 22.99 ; 37.84 Martin County 1752 FAIRKONT Q.0120X 6.39 0.34891 186.64 ; 193.04 1757 TRIMONt 0.01971 10.53 0.01601 8.57 ; 35.00 1758 TRU~9AN 4.04431 ?3.68 0.02651 14.20 ; 37.87 Meeker Cowty 1790 LITCFD•IELD 0.0139E 7.43 0.16537c 88.41 ; 95.85 1791 iIATKINS 0.0279% 14.90 0.01511 8.08 ; 35.00 Mille Lacs County 1818 MILACA 0.04291 22.97 0.04891 2b. 14 ! 49.11 1821 PRIt~Tal (JT3 0.46881 250.81 0.08771 46.92 ; 297.73 Moller County . 1904 At1STIN ~ 0.41631 & 71 0.58521 313.11 ; 321.82 Nicollet County 1974 NICOLLET 0.-00521 2.78 0.01601 8.57 35.00 1975. ND MAN~ATO 0.06861 36.70 0.26751 143.09 ; 179.79 .Nobles County 2003 ADRIAN 0.41511 8.08 0.0!851 9.91 ; 35.00 2413 WORTHIN6Ta1 0.45731 30.67 0.27221 145.63 ; 176 31 Norran County 2045 ADA ~ 0.02741 14.68 0.0320% 17.10 ; 35.00 , Jlested County eon erRON o.oo38x 2.06 0.o452fc 24.70 ; 35.00 -4- TIF % TIF AAV ARV Total .Code City Factor Assess~ent Factor Assess.en# Assesseent 2oaz RodfstER 1.39o1x 743.72 2.6524x 1, 419.05 2,162.77 2083 stEi~IARTVILLE o. 05191 27.74 0.0958x 51.26 ~ 79. o0 Ottertail County 2160 FERGLRS FALLS 0.24821 . 132.80 0.3922% 209.75 t ~~~ Pine. County 2254 SAt02STO~~ 0. 0i58x & 43 0.02531 13.'53 35.00 Dipestone Count; 2280 PIPESTDFiE 0.0210x 11.23 0.0856x 45..82 ~.~ Polk County 2351 CROOKSTtr! O.i166x 62.39 0.156ix 83.Si 145.90 Red Lake County 2422 RED LAKE FALLS 0.04321 23.10 0.0244x 13.03 36.13 Redwood County 2463 REDbIQQA FAILS 0.03681 19..67 0.1420x 75.96 ~ 95.63 2469 NRI.lAli GROVE 0.0017x 0.88 0. 01491 1.96 35.00 penville County 2504 BIRD ISLAI~ID 0.02991 16.00 0.0233x 12.47 35.00 251i OLiVIR 0. 0i97x 10.35 0.06301 33.72 44.27 Rice county T 2535 FARIBAU .0.34391 183.99 0.4034x• 215.84 ~ 3~. . 2337 MQRRISTI~1 O.OOi7x 0.89 24 51 0.01191 2989x 0 6.39 159.90 ~ ~ 21L14 2539 NORTFFIELD 1JT~ 0.04581 . . Rock County 1831x 0 97,.95 .0..10721_.__ ..::57.35__1 L5~.30 __ _ _...--- 2564 titlVEit~ _ . _.._. _ - ..-- __- _ .. - _. . St. Louis County O:d277x 14.80 0.0336x 17.95 35.00 2690 ALiRDRA 2303x 2 i,i93.2i i.7644x 943.94 1 2, 145 x697 DtLIT~ . 07691 0 41.17 0.084bx 45.25 1 2694 EVELETH . 16501 0 88.26 0.41121 220.00 ! 308.ffi 2704 HIBBIN6 2711 MDI~ITAIN IRON .. . 0.0030x 1.60 0.0870x 46.52 ~~ 2713 PROCTOR O.OOilx d.90 24 194 0.0552x 0.2301x 29.52 1 123.10 1 35.00 317.34 2715 VIRGINIA 0.3631x . Sherburne County o296x o i5.82 0.47201 252.53 1 868.35 2739 R • 2740 BI6 LAKE. . 0.03181 17.02 0.0624x 33.3] ~ 50.39 Sibley County 0597x 0 31.96 0. 0380x E0.3~' 52.28 2770 GAYLORD . Stearns County ooo5x O 0.29 0.0109x 5.82 1 35.00. 2822 BROOTEN 2823 COLD SPRII~ . -0.0012x 0.65 0.0614x 32.86 ~ 35.00 2$39 SAR1II1 tJT? 0.1097x 58.70 91 311 0.1838x 4103x i 98.33 1 754.50 ~ 157.03 1,066.4T 2843 ST CLOW 1ny 0.5830x . . Steele County 2868 BLOOMll6 PRAIRIE 0.00231 1.23 0.04121 22.06 35.00 405.34 2871 OWATOI~iR 0.25821 138.13 0.4995x 267.22 1 ~9tevens County 00121 0 0.63 0.00721 3.83 35.00 2895 CHOKIO . 0392x 0 211.95 . 0.0944x 30.52 ~ 71.47 2848 MORRIS . Swift County Q451x O 50.90 0.0286x 15.31 1 66.21 2426 APPLETOH . 2705x 0 91.23 0.05291 28.29 1 119.51 2927 8El~tSON . Traverse County dsesx d 9.8T o. oo46x 5.16 35. o0 3000 BRr~s VALLEY . liaseca county ,- • ur TiF ARS- AAV Total bode -= City... _._. _ .. __Fsctor-- Assessrent ---Futon ° Assess~ent Assessaertt 3086 WAl.DORf 0.0017x o.91 o.oos6x 3.00 ~ : ~- 35.00 3 3087 1iR5c'CA 0.fl443x 23.b8 0.2264x 122.11 144.79 ffatowan county 3110 MADrZIA 0.0565x 30.24 0.0425x X2.75 ~ ~.gg _akin County 3142 BRECKENRID~ 0.0347x 18.54 0.0590x 31.58 ~ 50.12 {firana County 3185 ST CHARLES O.000Bx 0.44 0.0519x 27.77 ~ .35.00 3188 gIiVE11fA 0.2877x 153.94 0.5964x 319.07 473 O1 {fright County 3217 A(.BERNILLE 0.0424x 22.67 0.0213x 11.42 ~ 35.00 3218 AMiANDALE • 0.1826x -97.71 0.0421x 22.54 ~ 120. ~, 3zI9 StlFFALD 0.3975x 212.66 O.i342x 71.78 ~ 284.44 .3221 COKATD 0.0679x 36.32. 0.0467fc 24.99 ~ 61.31 3~3 ~~ 0.0878x 46.98 0.062bx 33.47 ~ 80.44 3227 lIONTICELL,O 0.O105x 5.63 0.4625x 247.44 253.07 3229 ~ (JT1 O.000lx 0.07 0.0380x 20..32 ~ 35.00 1lelloM Medicine County 3262 CLARKFIEID 0. 0?34x 12. Si 0. OI65x 8.83 ~ 35.00 3264.6RAlVITE FALLS (JTI 0.1394x 74.60 0.0822~c 43.96 ~ 118.56 100.000Ox 53,500.00 100.000Ox 53,.500.00 101,674.73 r • I ~~ x~„~ _ -~ III 1 ~ '_ FFEf .E ~kE) -------~ :vc~cc €~~ t~i~~~scts cities. October 7, 1985 T0: Mayors, Managers, and Clerks FROM: Donald A. Slater, Executive Director RE: Tax Increment Finance Study 3- ~ The staff of the League of Minnesota Cities became concerned ab-out the future integrity of tax increment financing (TIF). There are several reasons for this concern: 1) The Legislative Auditor is conducting a study of TIF and is scheduled to report to the legislature in January, 1986. 2) The Senate Tax Committee .established a special task force on TIF and development tools. This group; under the chairmanship of Senator Larry Pogemiller intends to produce recommendations for changes in the TIF program for consideration during the 1986 session of the legislature. 3) The House Tax Committee has established a special subcommittee to study TIF. 4) The Citizens League of the Twin Cities/Metropolitan area issued a report on the subject of TIE recommending the abolition of this legislative authority and the replacement of it with an entirely new program. Over the summer, meetings of interested municipal officials took place in which it was concluded that a more general discussion of this subject should be held. In August, the League invited all cities in Minnesota to a review of the legislative situation and a discussion of the potential courses of action. At the August meeting, after reviewing information from representatives of the legislature, independent students of this issue, and League staff, League members adopted a resolution directing the League to formulate a joint program to protect and improve TIF and work together with the Minnesota Chapter of the National Association of Housing and Redevelopment Officials (NAHRO). City officials agreed that any extraordinary costs associated with studying or lobbying TIF should be borne by a voluntary assessment of cities participating in TIF. Meetings of representatives of the League and NAHRO met and reviewed•the situation, concluding that it would be necessary to do additional studies of the current state of TIF as well as be prepared to mount a vigorous campaign at the 1986 legislature, as .necessary. -~- ~- ~ '~ er~ty avenue east, st. paui, minnescta 5s'; O'! C6 '1 2) 22~-S000 _ ~ ~ ~ ~• Tax Increment Finance Page 2 October ?, 1985 These officials concluded that this effort would exceed the. capabilities of either organization under current arrangements. It was decided that the League and NAgRO would work out a special voluntary assessment of cities currently utilizing TIF who have a major interest in the preservation of this important development tool. It was also concluded that the League .would provide in-kind services to the effort which would represent a contribution from cities throughout the state having an interest in this tool although they are not currently using TIF. Discussions also suggested that those cities not currently using TIF-but desiring to contribute should be encouraged to do so. A direct billing is being computed. for cities currently employing TIF as an active development program. The League Board of Directors reviewed the tax increment situation and the joint program worked out with NAIiRO. The Board approved the.joint program, recognizing the importance of tax increment to the cities of Minnesota. HOUSING. AND REDEVELOPMENT AUTHORITY ~ _ / ~" ~"` Office of Executive Director HRA Letter No. 63 Agenda November 18, 1985 Housing and Redevelopment Authority Commissioners City of Richfield Subject: .Project and District Boundary Change, Modification No. 1, Technical Correction., ILN Dear Commissioners: On November 12 ,1985, the City Council approved the establishment of the ILN Redevelopment Project anal. Tax Increment Financing District. Hennepin County as a part of determining the Original Assessed Value-for the Tax Increment District (base value) has reviewed the boundary location and list`of parcels included in the district.. .They are requesting a slight modification in the tax increment district boundary and parcel list. This letter requests the HRA to adopt the attached resolution approving. these modifications. At the present time, the eastern boundary of the ILN District splits two tax parels occupied by tracks of~the Minneapolis., Northfield Southern Railroad, see attachment "Existing". It is proposed that the location of that boundary be shifted to that shown on the same attachment and marked "Proposed". The parcel occupied by the north-south railroad track would be completely deleted from the project. The parcel occupied by a spur track servicing Lambert Lumber would be included entirely within-the ILN. Also the parcels owned by the railroad and located within the district were inadvertently not included in Exhibit IV, Tax Increment Financing District Parcels. Thus,. page 51 has been modified to add these two parcels. The appropriate changes have been made in the pages of the Plan document and have been attached to the resolution. Legal Counsel has indicated this is a technical amendment and would require the adoption of an appropriate resolution by both the HRA and City Council. It is recommended that the HRA adopt the attached resolution approving the modification of the ILN district boundary. .The modification deletes the westerly half of the railroad right-of-way between I~9~+ and West 77th Street. The modification adds the parcel upon which the railroad spur line crosses to the lumber yard and the railroad parcel immediately west of the railroad right-of-way. This latter parcel has always been in the redevelopment project and tax increment financing district, but it was not listed on page 51 of the October 21, 1985, document. -~ The resolution also directs the Executive Director to present this modification to the City Council for consideration.. Respectfully submitted, ~~. ~' ~` ' artwr ht John G. C Executive Director JCG/eja a-3 HRA RESOLUTION N0. APPROVING MODIFICATION NUMBER 1 TO THE INTERSTATE LYNDALE NICOLLET REDEVELOPMENT AND TAX INCREMENT FINANCING PLAN DATED -0CTOBER 21, 1985 WHEREAS, the Housing and Redevelopment Authority Ln and For The .City of Richfield, Minnesota (HRA) adopted resolution number 267 on October 21, 1985, approving a redevelopment plan and tax increment financing plan for the Interstate Lyndale Nicollet Redevelopment Project pursuant to provision of Minnesota Statutes Sections 462.11 to 462.585 and Sections 273.71 to 273.78 (the Act); and WHEREAS, the City Council of the City of Richfield, Minnesota (City) adopted resolution number 7101 on November 12, 1985, approving a redevelopment plan and tax increment financing plan for the Interstate Lyndale Nicollet Redevelopment Project pursuant to the Act; and WHEREAS, the 'tax increment financing district boundary. is depicted in Figure B1, page 45, and, is desoribed in. Exhibit V, page 52, in the~Redevelopment and .Tax .Increment Financing Plan dated October 21, 1985; and WHEREAS, Exhibit IV, pages 48 through 51 contains a list of the Tax Increment Financing District Parcels in the Redevelopment and Tax Increment Financing Plan dated October 21, 1985; and WHEREAS, Hennepin County in reviewing the boundary location has found that it inappropriately divides two tax parcels, and that two parcels were inadvertently omitted from the list of Tax Increment Financing District Parcels. NOW THEREFORE, BE IT RESOLVED by the Housing and Redevelopment in and for the City of Richfield as follows: 1. Figure B1, page 45, dated November 18, 1985 and, Exhibit V, page 52, dated November 18,~-1985, and Exhibit IV, page 52 dated November 18,1985, as attached are hereby approved as Modification Number 2. The Executive .Director is requested and directed to present this Modification Number 1 to the City Council and request their approval. Passed by the Housing and Redevelopment Authority of Richfield, Minnesota this 18th day of November, 1985. Thomas E. Harms, Chairman ATTEST: Joan Helmberger, Secretary _ is 1. _.~ J_ J -_ ~I r: i I ............ .... ..............»................................... .... .Ir. i_ _-.. ~. «..... .. r....... ....~ 'a'an,o; i ~ ~~, ,~ ; ' ~uC~~~;D~C ~ .{_ .J~.J I r .r_ i~~ .J._....r 1 i' r I ~_. 1` PC A^tl p ~D ~^ ~D ID ;I IUD j0 10 iD ~ CI„~ i ~ I y Ch C~ U ' ..~ :i ~... ate.. f` ~ i ff u I i ' i ! D a, D!o+ D `D ~ b 1'0'D J I~ i i._ .al 1 i :~ y ~- l _L i.1 4~ ~ T ! !' ~ -; -t ; I ~_ -' - 1 i 1 ~ ` r ~ i ! i i i I' ~n ~^ o .o,i ~ a, I j ira n n ~ ~ a~n r 'y.~i ~ ~ IL ~_._L.. ~_ ..:~_ j1_ . ~ ~- r i i i i ~. j i , j I i ~ ~ I I I ; D,D~DIO; ~~G if .~~- I .~.~ .- i i I .DIOiDj^ iD ID 10 j I i ~ w~.~.~r~.r~ ^! ~ i j ~ I ~ 1 ~ ~ ~~ ji - -~-- -1-- ~- ~.~._~_t; ~i_. ~Qio~~nio~a~nio lia n;aCc .n loicraiabc, L 1 J..1.1 .1...L .1j (i1.,.....1. .L 1.~. .x.1.1 .1J _ T._.~.TT `n;n~b~ ~a'ca~ll`D,D~DL'1C1ot~0`DD`D~II' r ~. ~ .,_..~. I r_t 11:~.rt..,1...1. ~ I ~^I D O+O~O~O~p ~iQp ! O,Cl'GipinlOia+Da ~ _ --i-+--L-~~i (i1_L. 1.11111 _ ~~, o •antl we {•x'j r~ .; .. a- ~~ 'r. ~ r Ir~ ~-.~'~. 1 It 7 i i ~ ~-~ ~ . ;: ~._- - is r ~ L._._ _..i1 ~~ I~_ 1.- --i- -----~ ~i ly i~ it ~.. / i ~~ jI jpfl / _ .r~'2:i_..L.._._J ~ L_. alb../ J+ •oS •eny a7epuA~ i 'o;o;'D'o;n'o^ +_ _ . T T _ ~`- is ~, I Di,D i~ r 0101 C5~ I, t ...i !~ a !o `o'o io!D 3coi n;oD o i ~~..i ^ ` a'c'ne `~' 7anab i~ ~'' ~ -r ~ -r ~ ._ . 7 ~1~1 , , ;D; o, liniip,cioicaja~o;a ;o , D~~Ipr In In, ~!IDDi©IO;CiIOfD'L1'O~ ~]; ~•; OrD 'O'a Ia !n 'n oS a r .euo:t 0 o~QTa,_ p a i~ o«^'o'^ o"o `O; a'Q~3:'D'A' t° ~~ I i i l l i i I~ i i c!c I °io ODdII Iia>s^+D;Qi I ° lo'~~ICJ~ ii 1.-i_1~1.1~i j11.1_.l..t_ i .1_ _L .i _i1~1 octl uxwrq, 7O i17~D~1~~7~ ~a~LiOOa~c~a;a~0 I .. ' 71D I (D Ii I // ~[llicola~cro~nic~ b!^ ~i r.-l._ ~._..y ~...! L~._' .1...7.1.1.1 ...L .i ...L. 1. ' 'O 'P+tl Up6lewa j®! ~ i ~f7i0~>~IO,~~i E d1 ! a~ .~ ~..l.y IL.lI ~' ~~ /` , ~ Or171OI0lp ~° I ga O B~~r IupYla)j ~, ooo~o~ ~b~fla~a~np ~i~~ 710'D ~OI&i'D'DI • InIC7 ~O~ ~ ~ D b tb~ 1..1.-.~ J..1 1.Jj L 1 ~I_._L...L..L.1.i.~ r .oS and we~J G ~ ~ ~ ~ i~'r f'I~tj Tni -T~1 ' _._!-....1.. _ ~ J_ i 1 L ~ ~.L :.L.L.y ~~;n:cln'^'o 7_ ~ . i...1... ~ ~._ ~_ aolo+aioi^n aia I o+n +'^ io la l i;- ,-i i ~~ ~! u -a ~-. r' ~-~ ~ i I 1i I ~~~~ f'~.i l , -- Goo--Qj i I L-; i i I I j i ~._._..._L.1.- -~-~ I ' ~ ~ ~ ~I ~ ; ~ i~ j ~..~.~J ; ipa~; _._1.1..1.1 _ _._ ~ 1 ~~ Q ~ ~--------- ~r~ ~ ~ i ~~ ~ .. LL N . 1 ~ ~ 4 _rs r ~_ ®Z ~ a ~ ~ a~ C_ ~~' a: ._. ~ \ " .~.. . (~ " G~ ~~ ~~ U ~ r•~ i fe T L ' ~~ r a! ~~I i€~ V i tr f 1~ i U '" O Z o V •~ a `" ~~ U H ~• ~ ~ ~ r.r ~' . x ~ Z o EE jj .~~~Li ~ ti ~.- S PROPERTY ADDRESS 7701 Lyndale Avenue 7745 Lyndale Avenue 512 W. 78th Street 501 W. 77th Street 7724 Harriet Avenue. 500 W• 78th Street 7701 Harriet Avenue 7713 Harriet Avenue 7737 Harriet Avenue 416 W. 78th Street- 400 W. 7gth Street 401 W. .77th Street 300 W. 78th Street 320 W. 78th Street Any other. right-of-way property. NO ADDRESS , NO ADDRESS PLAN MODIFICATION N0. 1 11/18/85 PROPERTY IDENTIFICATION NUMBER 34-028-24-33-C?001 34-028-24-33-02 34-028-24-33-0003 34-028-24-33-0004 34-028-24-33-.0005 34-028-24-33-0006 34-028-24-33-0007 34-028-24-33-0008 34-028-24-33-0009 34-028-24-33-0010 34-028-24-33-0011 34-028-24-33-0012 34-028-24-33-0013 34-028-24-33-0079 34-028-24-33-0014 34-028-24-33-0030 51 .EXHIBIT V _ Tax .Increment Financing District Boundary Description All that real. property within an area as described; Commencing at the intersect :: -:;~~e southerly line of .Section 34 with the westerly right-of-way line of the Minneapolis Northfield Southern Railroad, thence northerly along said westerly right-of-way .line to its .intersection with tY~ easterly line of Pleasant Avenue, thence south. along tha easterly line of Pleasant Avenue to its intersection with the easterly extension of the north line of 77th-Street, thence westerly along said ire to th° southwesterly point of Section 34 Township 28 Range 24 Quarter 33 Parcel 72, thence northerly to tk~ northeasterly point of Section 34 Township 28 Range 24 Quarter 32 Parcel 56,thence westerly to the .southwesterly corner of .Section 34 Township 28 Range 24,Quarter 32 .Parcel. 21, thence northerly along try east right of way _lrie of Lyndale Avenue South to the point of intersection of the north right of way line of West 75th Street extended, thence westerly along.-said right of way to the southwesterly point of Section 33 Township 28 Range 24 Quarter 41 Parcel 3, thence .southerly to tY~ southeasterly point•of .Section 33 Township 28 Range 24 Quarter 44 Parcel 49, thence westerly along the northerly right of way line of West 77th Street to th? southwesterly point of Section 33 Township 28 Range 24Quarter 43: Parcel 8, thence- along the easterly right of way of Emerson Avenue .South to the north right of way line of West 76th Street, thence westerly along said right of way to the southwesterly. point of Section 33 .Township 28 Range 24 Quarter 42 Parcel 108, thence north to tY~ northwesterly point of Section 33 Township 28 Range 24 Quarter 42 Parcel 10g, thence .westerly to tl~ center right of way line of U.S. Interstate •Highway No. 35W, thence south along said line to the .southwesterly point of Section 33 Township 28 Range 24 Quarter 43, thence east along tl~ southerly boundary of :Section 33 Township 28 Range 24 Quarters 43 and 44, and Section 34 Township 28 Range 24 Quarter 33 to said. point of beginning. MODIFICATION N0. 1 11/18/85 52 EXISTING J ~: z ~:~ .._.. ____.j n i ' ~ . - ~.- Y j ~ ~ ~ ,,,, j ,. .,~~. ~~ ~ ~ ~~~ .. ~ ~. ~. ,. ,, ~, _# ., ______ ~~ "' •~.. :... . ~- 7 PROPOSED ~~ - / ~ ~ ~ T 1 f ~ N..:. % ~~ { /, z -> , ,, . /,% ,~ j ~~+ j ~ ~ ~ ~ // 1 /~ , ~ 1 ~ j a ~" ~ "~ L ~ ~ ~,~ ~ ~~ ~ © L^~ s Y ~, . ~: j~ ,. ., ~~+~: s, ~' ;,,,; :~. ~~ `- •~ ~~•- - _ ., /-/ HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 62 Agenda November 18, 1.985 Housing and Redevelopment Authority Commissioners City of Richfield. Subject: Affordable Housing Achievement Award Dear Commissioners: The HRA Executive Director will present to Chairman Tom Harms and the HRA the Affordable Housing Award recently awarded to the City of Richfield by the Metropolitan Council and Association of Metropolitan Municipalities in the-category - Creative Re-Use for Housing and Housing Rehabilitation. The Me ropolitan Council and the Assooiation of Metropolitan Municipalities recently presented awards to local units. of government in recognition of outstanding accomplishments in providing .affordable.housing opportunities for low and moderate income families. Competing with other metro.. area large communities (those with populations of 30,000 or more,) the City of Richfield was recognized for its'"creative re-use for housing anal housing rehabilitation activities". This recognition is the first of its kind in the metropolitan area and is "meant to applaud and publicize the many ways that affordable housing opportunities have been provided since 198~l." Richfield was recognized for its Vo-Tech housing projects, for its conservation programs, and, for the CDBG and MHFA rehabilitation .loan programs. The Accomplishments (1) The HRA has provided six housing units (the sixth is under eon truction now on Humboldt Avenue) in cooperation with Vo-Tech since 1981. Four of the houses were substantial reconstructions of existing Richfield homes. Two of the units (the duplex townhome on 66th Street) were. new construction. Three of the six units qualified. as "superinsulated" dwellings. All of the houses were sold to moderate income, first time home buying families. Local resources contributed to make these housing units affordable included: providing two city owned lots at minimal cost, utilizing CDBG funds (approximately $137,000.} to acquire three additional sites, authorizing the use of a second lien to lower initial sales .prices (these liens total $117,000 1- z for six units), the "donation" of Vo-Tech student labor, which reduces total construction costs; and developing the superinsulated units which reduces monthly heating costs. 2) Since 1983, the city-has promoted the "Bundle Up- Richfield" residential energy conservation theme. Homes are being weatherized utilizing several funding sources. The City Council and the State Department of .Energy and Economic Development have contributed funds for administration. The MHFA in coordination with local lenders and staff has targeted energy improvement loan funds totaling $422,000 for 131 loans. In cooperation with Minnegasco, staff utilized $40,000 of utility funds to reduce energy consumption costs for property owners through a"housedoctor" program in which 85 lower income households have been assisted. 3) The HRA has helped to provide the following support for rehabilitation activities since 1881: -MHFA Home Improvement Loans 76 units, $48$,000 (in cooperation with local banks.) -MHFA Rehabilitation Loans 19 units, $120,000 -CDBG Rehabilitation Deferred Loans 60 units, $374,OA0 Awards in the 30,000 or more population category were also provided to the City of St. Paul for its rental housing programs, the City of Brooklyn Center for homeownership opportunities programs. and, .the cities of Minneapolis and St. Paul for the McKnight Housing Fund. Richfield received this award because of the outstanding cooperation and support of the City Council, HRA and HRA staff. The HRA staff deserving special recognition are housing specialists Bruce Nordquist and Marcia Hale and their supervisors Dennis Kraft and Bruce Palmborg. pect ul ~mitted, ~ A John G /Ca .wright Executive Dir for JGC/eja tats O~ ~O ~~' f(~ ~~ ® IIIU ~ ~a o. ~ r. f~ ~ '~ww aT'"~ 3Q0 Metro Square Building 7th and Rabert St. Paul, Minnesota 55.101 August 30, 1985 T0: Metropolitan Area-Local tTnits of Government SDBJECT: Affordable"Housing Achievement Awards assocation of mefiropolrfion municrpaiities On behalf of the Metropolitan Council and the Association of Metropolitan Municipalities, we are .pleased to announce a series of awards to 'be presented to local units of government in recognition of outstanding accomplishments in providing affordable housing opportunities for .low- and moderate-income families. This recognition will be the first of its kind in the metropolitan area. It is a ahance•to applaud as well as publicize he many ways affordable housing has been encouraged and provided by communities. We invite your community to submit an entry for recognition in any of the following five award categories: - Outstanding overall achievement - Streamlaed local official development controls - Affordable homeownership opportunities - Affordable rental opportunities In the last three categories, two. awards will be given-one for communities over 30,000 population and .one for communities under 30,000 population. Nomination forms citing criteria for each of the awards are enclosed. Although a community is eligible for recognition in only one category, we encourage you to enter as many categories as applicable to the community's housing acti•~ities. Responses should address programs or projects the local unit of government, HRA, or other public agency has activated or participated in since 7981. We are using this year because Federal assistance cutbacks began, comprehensive plans were reviewed and put into effect, and the Council and AMM s joint: recommendations for revising local development controls were .completed. Dominations must be submitted to the Metropolitan Council no later than FY~iday, October 4, 1985. The recognition award recipients will be selected by a committee composed of members from the public and private sectors. The awards will be presented on October 24, 1985 at the Joint Conference on Affordable Housing. sponsored by the Council, AMM, MKFA and other housing organizations. Conference information will be mailed in September. Please contact Roberta Everting, Council Housing Planner, at 2q1-6378 if you have any questions .concerning the recognition .awards. Sincerely, 'tGt Sandra S. Gardebriag Chair Metropolitan Council /~ ~'~~o im Scheibel President _ .:: Association of Metropolitan Municipalities