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12-17-84 agendaHOUSING-AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 55 Agenda December 17, 1984 Housing and Redevelopment Authority Commissioners City of Richfield Subject: Legion Lake Dear Commissioners: Overview A discussion item concerning the future comprehensive deyelopment plan for Legion Lake has been placed on the HRA agenda. The purpose is to provide time to the HRA members and HRA staff to di~seuss the University of Minnesota School of Architecture student development concepts that were presented to city officials about a month ago. Don Fondrick, Director of Community Services, will attend this HRA meeting to collect HRA comments, recommendations and questions so that they may be forwarded to our planning consultants. All. of the student concept plans will be available at the meeting for more evaluat-ion. Housing Staff has had contact with a private non-profit organization which has expressed considerable int-crest in constructing housing adjacent to Legion Lake. The type of housing being contemplated is rental housing far the elderly. This housing could be either a Section 8/202 project and/or rental housing for moderate income elderly individuals and families. According to research done by this organization, there is a significant. unmet demand for this type of housing in the Richfield area. Also attached for informational purposes only is a newspaper article which appeared in the December 11 edition of the Minneapolis Star and Tribune which describes a mixed project which is propose to be constructed in southeast Edina. <;,,,. Respectful~,,y submitted , ' ~' ~' ~~. ~~~'rll~v ohn G. Car wr' t Executive Director 'T i viii .i L Li i t~ ~~ W 5~. iY ~- _. -t . '"' . ~, ~. i 4f ~ C ~ aYa w u`o. 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Y .~ ~~ $O yY Y~O. 9V~~Q o~Y ~,o Y.~_.i. ~ a ~~'3 ; 'm~~~$ ~'e3..spaq.a i~a° a iQ.~mpC~ Ea~ES~iTY ~.~t°~ o~~$. ~pe°+i:~- Ons 9~~a ~»~ va °~ Y V 3la~~~. ouSS.~ 3.a~o~ $RR`E.E°'.~oa° ae.aciaD at~~_~~ g' o S~'$~Q~v i~ra ~~~°o$ c-S ~og°iS9- `~~~ ~j~vE r O. v rNQS E O q Gs E. 7 "`~~ O E;i ° e$~a°~~~~ °~~~E of°g°gZga m' u e~~ooa'i5 F~o~ 4aiSX$ ~y8 C~$ ,ate Y ~~-,Y a - i i $3 _~ A'E{~3s~ iia g~Yq' - `o °~~ r P~ ~+ias •i°~•r°• 7 V i~ ~~ V= C .~~ d~ a. ~'Wu °~uS~°~ V m`L ~Y~`° ^i ~ -~o m°oii~ E..ee y~°~ ~a ~,g a a Y .._ HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 54 Agenda December 17, 1984 Housing and Redevelopment Authority Commissioners City of Richfield Subject: Designation of Auditor for 1984 Financial Records Dear Commissioners: For the past four years, the City and the HRA have hired the auditing firm of Cummings, Keegan & Co. to perform the annual audit of the City and the HRA financial records. On November 26, 1984, the City Council designated this firm to conduct the audit of the City's. 1984 financial records. Cummings', Keegan & Co. have also proposed to conduct the 1984 audit for the HRA at a cost of $3,200. The 1983 and 1982 HRA audit costs were $3,000 and. $2,700 respectively. Because this firm has developed. a good working relationship .with the City and because certification of confirming program require- ments mandate a combined reporting of City and HRA financial information, i~t is recommended that the HRA designate Cummings, Keegan & Co. to conduct the 1984 audit. The City Manager has advised the City Council that efforts will be made in 1985 to again establish a longer-term (five to seven years) relationship with an auditing firm through requests for proposals (RFP), evaluation of proposals and interviews with responding firms. pectfu mitted, ti ~~ ie ~1 John G. Car rightf Executive Dir ctc~r JGC:sb cc: Acting Administrative Services Director Community Development Director Finance Manager JAMES J. KEEGAN. C.PA. - JOHN M. FREES, C.P.A, JEFFREY D. EMERICK, C.P.A ROGER S. WHERRY. C.P.A. W DONALO CUMMINGS. C.P.A. (RETIRED Cummings, Keegan Sc Co. Certified`Public Accountants 6800 France Ave. So. ~ Suite 465 • Minneapolis, MN 55435 Phone (612) 922-3622 October 29, 1984 City of Richfield City Council c/o John Cartwright City Manager 6700 Portland Avenue South Richfield, MN 55423 Dear Council Members: MEMBERS OF • PRIVATE COMPANIES PRACTICE SECTION OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • MINNESOTA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS This letter is to confirm the arrangements for our examination of the financial statements of City of Richfield for the year ending December 31, 1984. We will examine the financial statements of the various funds and accounting groups of The City of Richfield, Minnesota, The City of Richfield Police Relief Association and The Richfield Housing and Redevelopment Authority, for the year to end December 31 ,. 1984. Our examination will be in accordance with generally accepted auditing standards and will include such tests of the accounting records and such other auditing procedures as we consider necessary in the circumstance's. While the objective of our examina- tion is the expression of an unqualified opinion on the aforementioned financial statements, an opinion may .have to be qualified or denied as the facts and circumstances dictate. The ordinary examination leading to the expression of an opinion on financial statements is not designed to disclose defalcations and other irregularities, nor can it be relied on for this purpose. However, if such irregularities come to our attention during the examination, we will discuss. them with you to determine what course of action to take. Your accounting department personnel will be available to assist in preparing certain audit schedules and data, locating various supporting documents in the files and. typing confirmations and the final audit report. Fees for these services are at our standard hourly rates and will be billed to you, plus out-of-pocket costs, monthly. These invoices are payable on presentation. A service charge of 1 1/27 per month is made on accounts over thirty days old. • ^ Accounting Finns Associated inc. City of Richfield City Manager Page 2 Every effort would be made to keep our fees to the minimum consistent with the service requirements of the engagement. Assuming that the City and the two related entities have accounting records which are complete, balanced, reconciled and well documented as of December 31, 1984, and that City per- sonnel would be available to assist in preparing certain audit schedules and data, locating various supporting documents in the files and typing confirma- tions and the final audit report, our charges for the various audit examina- tions for the year ending December 31, 1984 would not exceed the following maximum fees: City itself and City Police Relief Association $20,000 Richfield Housing and Redevelopment Authority $3,200 If at any time during the engagement, any extraordinary matters requiring an extension of our services come to our attention, we will consult with you before proceeding. If the preceding correctly expresses your. understanding, please sign the enclosed copy where indicated and return it to us. We are looking forward to serving you again and working with the City staff, Sincerely, CUMrIINGS, KEEGAN & CO. . _ ~, ~~ .. Par~ner The above is in accordance with our understanding. sy Title HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 53 Agenda December 17, 1984 Housing and Redevelopment Authority Commissioners City of Richfield Subject: Cancelling a Contract with Hennepin County Concerning Administration of a Loan Program Dear Commissioners: On September 19, 1983, the Richfield HRA authorized the execution of a contract with Hennepin County for the administration of the Minnesota Housing Finance Agency (MHFA) Rehabilitation Loan Program.' By entering into this contract, the program was locally administered by the Richfield HRA rather than the Hennepin County Office of Planning and Development (OPD). This arrangement has allowed the improvements funded by loan funds to be more closely monitored and has enabled better coordination with other locally administered programs. Administrative revenue of approximately $2,780 is paid to the HRA by Hennepin Caunty for administration of the program. Recently, Hennepin County was notified by MHFA that the total funding of their allocation (of which Richfield has a share) has been reduced by 32~. This. resulted from Hennepin County failing to disburse 75~ of its funding allocation by September 28,-1984, as required by MHFA. Although Richfield had committed its appropriate share, it is held accountable for the same reduction as the County since the funds were provided to Richfield through the County. Therefore, the initial Richfield allocation of $27,78a-was reduced by 32~ to $1$,.$90. In staff discussions between Richfield and Hennepin County, it was found to be in .the best interest of both Hennepin County and the Richfield HRA to cancel the contract for administration of the MHFA Rehabilitation Loan Program for the following reasons• -Although Richfield~s initial allocation was reduced by 32 , cancellation of .the contract would allow Richfield homeowners to share in an additional amount o~loan-funds that MHFA will make available to Hennepin county OPD in the next few months. The Richfield HRA would not be able to secure these extra funds and homeowners in Richfield could not receive funds directly from the County program if the contract still remained in effect.- -2- The amount of funds MHFA has taken back from Hennepin County has been re-appropriated to other communities in the state who demonstrated the ability to expend the funds in a timely manner. -The Richfield HRA will now receive administrative funds of approximately $1890 because of the work that has already occurred in assisting homeowners. This amount will be adequate to cover administration of the original Rehabilitation loan applicants; The additional allocation of funds that will be available to Richfield through Hennepin County are derived from a different source; previous MHFA loan and grant program paybacks or un- committed funds. If Richfield maintains the present contract as a subgrantee, only the reduced allocation is available. If Richfield cancels the contract and becomes a general participant in the County program, the reduced allocation and the additional allocation are available to homeowners. -By Richfield securing a portion of this additional allocation through MHFA, the city will be assisting Hennepin County in the timely commitment of their .funds. The.County currently lacks eligible applicants. The HRA hasa waiting list of eligible Richfield residents, which allows processing of the additional allocation rather quickly. It is recommended that the HRA approve the attached resolution cancelling the contract with Hennepin County for administration of the MHFA Rehabilitation Loan Program. Res~ectfu v w-..v ohn G. ar City Manager ~s ' fitted , ~righ HRA RESOLUTION N0. --- CANCELLING CONTRACT WITH HENNEPIN COUNTY FOR HRA ADMINISTRATION OF A LOAN PROGRAM WHEREAS, the Richfield Housing and .Redevelopment entered into a contract with Hennepin County on September 19, 1983 for the administration of the Minnesota Housing Finance Agene,y (MHFA) Rehabilitation Loan Program; and WHEREAS, Hennepin County has been notified by MHFA of a 32~ reduction in their allocation which also. reduces Riehfield~s share of that allocation by a similar amount; and WHEREAS,. it has been found to be in the best: interests of both Hennepin County and the Richfield HRA to cancel the contract. NOW, THEREFORE, BE IT RESOLVED by .the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota: That the City Manager is authorized to notify Hennepin County that the contract is cancelled as of December 19, 19$4. Passed by the Housing and Redevelopment on this- 17th day of December, 1984. Thomas E. Harms, Chairman Joan Helmberger, Secretary OFFICE OF PLANNING & DEVELOPMENT ~''" ~~ ~., C-2353 Government Center , ~; ~, ~--~.. Minneapolis, Minnesota 55487 ~~--•° HENNEPIN _ (612) 348-64'I 8 November 26, 1984 Mr. John Cartwright Executive Director Richfield Housing and Redevelopment Authority 6700 Portland Avenue South Richi?field, MN 55423 Dear Mr. Cartwright:. Under the terms of the Loan'Funding Agreement between the MHFA and Hennepin County which governs administration of Phase II of the Rehabi- litation Loan Program, the Agency is empowered to reduce the funding level of any administering entity which failed to disburse 75~ of its funding allocation by September 28, 1984. Hennepin County did not meet this goal and as a result its overall funding level has been reduced by 32 percent. The Richfield HRA administers the MHFA Rehabilitation Loan Program in the City of Richfield through a special Cooperating Contract with the County. Richfield is therefore subject to a 32 percent reduction in overall allocation, from $21,778.00 to $1$,889.00. This. reduces the amount available to the Richfield HRA for the placement of loans from S25;OOO.OO to $17,000.00 and for the deferment of administrative costs from $2,778.00 to $1,889..00. I understand that discussions relative to this matter held. between Jim Graham from the Hennepin County Office of Planning and Development and Bruce Nordquist and Marcia Hale from the HRA, indicate that cancelling the Cooperating Contract and turning over Richfield's clients to the County for processing would be in the best interests of both parties. Such action would eliminate amending the Contract to reflect the reduction in funding and provide the opportunity for 'each of Richfield's prospective clients to be served by the program and simplify the administrative process. Hennepin County is therefore fornally notifying the .Richfield HRA that Cooperating Contract 30515 is terminated effective December 19, 1984. Please bear in mind that all individual loan applications initiated by the HRA, even if they total more than could be expected to be funded from a reduced allocation, should be submitted as quickly as possible to HENNEPiN COUNTY an equal opGotfuntty ¢mpioy¢r r--. --~-... Mr. John Cartwright November 26, 1984 Page Two to the County so they might be approved before program funds are expended. The more rapidly the Gounty expends its revised allocation, the greater its chances are of accessing additional funding which the MHFA has indicated will become available. It is unfortunate that program funds could not be committed in suffi- cient time to avoid a reduction, but Lam certain that the opportunity still exists to draw significant benefit from the program. -~ancerely, Dai a 'A. Ackmann County Administrator mlg HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 52 3 _ Agenda December 17, 1984 Housing :and Redevelopment Authority Commissioners City of Richfield Subject: Consideration of Financial Commitments and Construction Contracts for the Market Plaza Project Dear Commissioners: ' As of Thursday night, December 13, 1984, the status of financial commitments and construction contracts was not finalized for the Market Plaza project. Condominium Project The city has been furnished a financial commitment by Twin City Federal for a construction loan. Dick Krier expects to have the co-developers sign the construction contract with Knutson on Friday, December 14, 1984. Knutson is expected to sign the construction contract on Monday, December 17, 1984. The construction contract requires work to commence before January 1, 1985 or the contract is void. Commercial and Apartment Components First Federal has provided the city attorney with a conditional letter of financial commitment on the commercial component. The commercial redevelopment bonds will be accepted by First Federal for a period not to exceed six months. This process is called "parking the bond issue". Market Plaza Limited Partnership will then secure credit enhancement and a triple A bond rating to meet the Prudential- Baehe requirements for the permanent sale of the bonds. The developers will. also proceed to complete their housing bond financing plan for the apartment component. Both bond issues could then be sold in early 1985. -2- The construction contract with Bar-Son has not been executed by Derrick as of Friday morning, December 1~+, 198. A joint city staff and developers meeting will take place Monday morning, December 17, 198, to get a final update on these. matters. Res ectful s N fitted , • ~~ ~ ~ hn G. ar Wright Executive Di ctor JGC/eja HOUSING AND REDEVELOPMENT AUTHORITY Office of Execu-five Director HRA Letter No. 51 Agenda December 17,1984 Housing and Redevelopment Authority Commissioners City of Richfield Subject: City Council Action on Moratorium for Interstate-Lyndale Commercial Study Area (ILCSA) Dear Commissioners: ,i Attached is a City Council letter which will be presented for discussion and aetian at the Couneil meeting at 7:00 PM on December 17th concerning the ILCSA. The HRA is encouraged to attend this council meeting. If the ordinance authorizing a moratorium is passed after a second reading on February 11, 1985, the city Couneil will call upon the HRA to play an important role in both the planning and implementation stages of the proposed redevelopment, area. tful-~//~abmitte 6hn G. ;C~a~{twrigh~C' xecutive D' ect r JGC/eja