01-15-2019 Complete AgendaR E G U LAR H O U S IN G AN D R E D E V E LO P ME N T AU TH O R ITY ME E TIN G
R IC H F IE L D MU N IC IPAL C E N TE R, C O U N C IL C H AMB E R S
J AN U ARY 15, 2019
7:00 P M
C all to Order
Oath of office of Richfield Housing and Redevelopment A uthority C ommissioner, P at E lliott.
Oath of office of Richfield Housing and Redevelopment A uthority C ommissioner, Mary S upple.
Oath of office of Richfield Housing and Redevelopment A uthority C ommissioner, Maria Regan Gonzalez.
C onsideration of the election of officers and designation of assistant to the S ecretary for the Richfield Housing and
Redevelopment A uthority for 2019.
S taff Report No. 1
Approval of the Minutes
A pproval of the minutes of the: (1) S pecial concurrent C ity C ouncil, Housing and Redevelopment A uthority, and
P lanning C ommission work session of November 13, 2018; and (2) Regular Housing and Redevelopment A uthority
meeting of November 19, 2018.
AG E N D A APPR O VAL
1.A pproval of the A genda
2.Consent Calendar contains several separate items which are acted upon by the H R A in one motion.
Once the Consent Calendar has been approved, the individual items and recommended actions have
also been approved. No further H R A action on these items is necessary. However, any H R A
Commissioner may request that an item be removed from the Consent Calendar and placed on the
regular agenda for H R A discussion and action. All items listed on the Consent Calendar are
recommended for approval.
A .C onsideration of the adoption of resolutions designating official depositories for the Housing and
Redevelopment A uthority for 2019, including the approval of collateral.
S taff Report No. 2
B .C onsideration of the approval of an amended C ontract with the C enter for E nergy and E nvironment to
provide loan and remodeling advising services to Richfield homeowners for 2019.
S taff Report No. 3
C .C onsideration of the adoption of a resolution approving the A ssignment and A ssumption of C ontract
between NHH C ompanies, L L C , C P II D evelopment, L L C , and the Housing and Redevelopment A uthority.
S taff Report No. 4
D .C onsideration of the adoption of a resolution approving execution of a Right of E ntry A greement with C edar
P oint Investments, L L C , for the C edar P oint II properties owned by the Housing and Redevelopment
A uthority.
S taff Report No. 5
E .C onsideration of the adoption of a resolution approving collateral assignment of the S econdary D eveloper
Tax Increment F inancing Note to be issued by the Richfield Housing and Redevelopment A uthority for the
benefit of the S econdary D eveloper.
S taff Report No. 6
3.C onsideration of items, if any, removed from C onsent C alendar
R E S O L U T IO N S
4.C onsideration of the adoption of a resolution authorizing acceptance of a donation of $100,000 to the Housing
and Redevelopment A uthority from A ffordable S uburban Housing and approval of program guidelines for
distributing the funds through an A ffordable A partment Improvement Grant P rogram.
S taff Report No. 7
5.C onsideration of the adoption of a resolution authorizing the purchase of 6412 B loomington Avenue S . for future
development as a single-family home.
S taff Report No. 8
6.C onsideration of the adoption of a resolution amending the B ylaws of the Richfield Housing and Redevelopment
A uthority to reflect the composition of membership as authorized by the Mayor and C ity C ouncil of the C ity of
Richfield.
S taff Report No. 9
O T H E R B U S IN E S S
7.C onsideration of the approval of the use of up to $180,000 from the Housing and Redevelopment A uthority's
C apital Improvements F und to advance payments for the Housing C hoice Voucher P rogram for the month of
March (if necessary).
S taff Report No. 10
H R A D IS C U S S IO N ITE MS
8.HRA D iscussion Items
E X E C U T IV E D IR E C TO R R E P O R T
9.E xecutive D irector's Report
C LAIMS AN D PAYR O L LS
10.C laims and P ayrolls
11.A djournment
Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96
hours in advance to the City Clerk at 612-861-9738.
AGENDA SECTION:Call to Order
AGENDA ITEM #
S TAFF REPORT NO. 1
HOUSING AND RE DEVELOPMENT AUT HORIT Y
MEET ING
1/15/2019
RE P O RT P RE PA RE D B Y: J ared Voto, E xecutive A ide/A nalyst
O THE R D E PA RTM E NT RE V IE W: N/A
E X E C UTIV E D IRE C TO R RE V IE W: J ohn S tark, E xecutive D irector
1/3/2019
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consideration of the election of officers and designation of assistant to the Secretary for the Richfield
Housing and Redevelopment Authority for 2019.
E X E C UT IV E S UM M ARY:
The bylaws of the Richfield Housing and Redevelopment Authority (HRA) provide that the HRA hold an
annual meeting in J anuary. The bylaws further provide that the Chair, Vice Chair, and Secretary of the HRA
be elected at this meeting.
Officers for 2018 were:
Mary Supple, Chair
Pat Elliott, Vice Chair
Erin Vrieze Daniels, Secretary
Additionally, the bylaws provide that the HRA may designate an assistant to the Secretary who shall keep the
records of the HRA, act as recorder of the meetings and record all votes, keep a record of the proceedings,
and perform all duties incidental to the office. I t is recommended that the HRA designate the Housing
Specialist as assistant to the Secretary.
RE C O M M E ND E D AC T I O N:
By motion: Elect officers for the Richfield Housing and Redevelopment Authority for 2019 and
designate the Housing Specialist as the assistant to the Secretary.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
Provided in the Executive Summary.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The HRA bylaws provide for the election of officers.
C.C R IT IC AL T IMIN G IS S U E S:
The HRA bylaws require that an election of officers be held at the annual meeting in J anuary.
D.F IN AN C IAL IMPAC T:
N/A
E.L E GAL C ON S ID E R AT ION:
None
ALTE R N AT IV E R E C O MME N D ATIO N(S):
None
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
N/A
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Special Concurrent City Council, Housing
and Redevelopment Authority and
Planning Commission Work Session
November 13, 2018
CALL TO ORDER
The work session was called to order by Chair Supple at 6:15 p.m. in the Bartholomew Room.
HRA Members Mary Supple, Chair; Erin Vrieze Daniels; Sue Sandahl; Pat Elliott; and
Present: Michael Howard.
Council Members Pat Elliott, Mayor; Maria Regan Gonzalez; Edwina Garcia; Michael Howard
Present: and Simon Trautmann.
Planning Commission Sean Hayford Oleary, Chair; Allysen Hoberg; Susan Rosenberg.
Members Present:
Planning Commission Bryan Pynn; Kathryn Quam; James Rudolph; and Daniel Kitzberger.
Absent:
Staff Present: Steven L. Devich, City Manager; John Stark, Community Development
Director; Julie Urban, Housing Manager; Kate Aitchison, Housing Specialist;
and Jared Voto, Executive Aide/Analyst.
Item #1
EMERSON LANE REDEVELOPMENT
Housing Specialist Aitchison presented on the history of the site. The Housing and
Redevelopment Authority (HRA) purchased the property in 2005, hired a design architect to sketch
out possibilities for the property, and in 2007 released an RFP for developers that received no
responses. She showed a video walkthrough of the property. She discussed internal opportunities for
the City’s use of the site and outside interests since summer of 2014 to summer of 2018. She
discussed a current development proposal by Endres Custom Homes for five homes with list price of
approximately $330-340,000. Lastly, she also discussed the financials of the property, including the
amount the HRA has spent thus far and a number of scenarios including: do nothing; sell as vacant
land; divide and sell; transfer to recreation services; development of one home; development of three
homes; and development of five homes.
Council Members, HRA Commissioners and Planning Commissioners asked questions of staff
about the sound wall, the roadway being public versus private, the number of proposed homes, what
is included in the development costs estimates, the annual cost and replacement costs of the public
roadway compared to the tax revenue from new homes, and sewer and water access to the property.
Special concurrent Council, HRA and Planning
Commission Work Session -2- November 13, 2018
Mayor Elliott invited Dustin Endres, Endres Custom Homes, to the table to speak and answer
questions.
Commissioner Sandahl asked Mr. Endres about the type of home.
Mr. Endres stated the homes would be 4 bedroom, 3 bath, and 2,145 square feet. He stated it
is a popular floor plan and built five of these homes in the north east of Richfield last summer. He
stated he has two people who have reserved lots if this proposal moves forward and four others who
are interested.
Mayor Elliott asked staff about the affordable housing plan and if it was applicable to this
proposal.
Housing Manager Urban outlined the affordable housing plan requires over a 3-year period the
City expects 20% to be affordable. She stated they would have to recalculate the numbers, and that
these would not be affordable, and staff would have to look into another area to ensure the 20% are
affordable. She mentioned that currently the City is at around 30% affordable, but these numbers
would need to be recalculated.
Commissioner Hoberg commented about including affordability into new developments and
not falling back on not including it because we are already at 30% affordable, and having the housing
plan incorporate affordable housing especially on the west side.
Mayor Elliott invited homeowners near the proposed development to speak.
Jody Powell, 6800 Emerson Lane, discussed their factors in purchasing their home being near
Wood Lake Nature Center and the vacant lot behind their home. She asked how they would be
compensated for the loss in value for their home.
Mayor Elliott responded he wasn’t certain there would be a loss in value.
John Stark responded that they have tracked this in larger projects and in other areas —
Sheridan and 76th St — and the values have risen. He stated they could look at the assessed value
of the homes near there.
Ms. Powell asked about the width of the road and the ability for emergency vehicles in the
area. She commented on changing the character of the neighborhood with five additional homes in a
space where there was previously one or none and asked about the timeline.
Housing Manager Urban responded that there is no timeline at this point, they are seeking
guidance from policy makers and mentioned if the proposal moved forward there would be a
neighborhood meeting before approvals were considered.
Jerri Scott, 6608 Emerson Ave S, shared her concern about placing five homes and the
increased traffic that would come into the street. She also was concerned about the height of these
home compared to the ramblers currently there and aske the height to be reduced.
Paul Zobeck, 6714 Emerson Ave S, asked about the proposed costs of purchasing the lot.
Housing Manager Urban responded that they estimated $60,000 per lot based on previous
values.
Special concurrent Council, HRA and Planning
Commission Work Session -3- November 13, 2018
Mr. Zobeck asked if neighbors had the potential to purchase the lot outright. He commented
they purchased in 2009 and the driving force to purchase it was not having neighbors behind them
and he was more in favor of one home than five homes.
April Pream, 6639 Emerson Ave S, commented on the quiet nature of the block and asked
about the look of the proposed homes.
Urban stated they are the same model but they would change the roof lines and colors and
would expect that from the builder.
Ms. Preem stated it would be helpful to see how the homes would actually look. She asked
about the annual costs of maintaining the property currently and commented on the range of property
values on the block and that any homes on the block above the price of the new homes might reduce
in their value and those below the price of the new homes might increase in value.
Mayor Elliott commented on the availability of homes in Richfield and the limited options of lots
for the HRA to purchase.
Urban asked the policymakers if there was an option they wanted staff to pursue.
Mayor Elliott did not see this project moving forward while he was on the Council and deferred
to the other Council Members.
Council Member Regan Gonzalez stated she did not feel comfortable with the five house
proposal.
Council Member Trautmann stated he shared questions about the property if the City is not
gaining revenue from the development or sale and taking on certain costs with the public road.
Planning Commission Chair Hayford Oleary stated it is worse if it is three houses than five
houses if it has to be a public road and considered if it was better to stay vacant, as it doesn’t seem
feasible with three homes.
Council Member Howard suggested having another work session in 2019.
ADJOURNMENT
The work session was adjourned by unanimous consent at 7:00 p.m.
Date Approved: January 15, 2019
_____________________________
HRA Chair
_____________________________ ____________________________
Kate Aitchison John Stark
Housing Specialist Executive Director
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
November 19, 2018
CALL TO ORDER
The meeting was called to order by Commissioner Pat Elliot at 7:00 p.m. in the Council
Chambers.
HRA Members Mary Supple, Chair; Pat Elliott; Michael Howard; and Erin Vrieze Daniels.
Present:
HRA Members Sue Sandahl.
Absent:
Staff Present: Steve Devich, Executive Director; John Stark, Community Development
Director; Julie Urban, Housing Manager; and Kate Aitchison, Housing
Specialist.
OATH OF OFFICE OF RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY
COMMISSIONER, MARY SUPPLE
APPROVAL OF THE MINUTES OF THE: (1) SPECIAL CITY COUNCIL, HOUSING AND
REDEVELOPMENT AUTHORITY, AND PLANNING COMMISSION WORK SESSION OF
OCTOBER 9, 2018; AND (2) REGULAR HOUSING AND REDEVELOPMENT AUTHORITY
MEETING OF OCTOBER 15, 2018.
M/Howard, S/Vrieze Daniels to approve the minutes of the (1) Special City Council, Housing
and Redevelopment Authority, and Planning Commission work session of October 9, 2018; and (2)
Regular Housing and Redevelopment Authority meeting of October 15, 2018.
Motion carried 4-0.
Item #1
APPROVAL OF THE AGENDA
M/Elliott, S/Howard to approve the agenda.
Commissioner Vrieze Daniels requested the amendment of removing item 2a from consent
calendar to discussion.
Motion carried 4-0, as amended.
HRA Meeting Minutes -2- November 19, 2018
Item #2
CONSENT CALENDAR
Executive Director Devich presented the Consent agenda:
B. Consideration of the approval of revisions to the First Time Homebuyer Program
Guidelines. (S.R. No. 48)
M/Elliott, S/Howard to approve of the consent calendar.
Motion carried 4-0.
Item #3
CONSIDERATION OF THE ADOPTION OF A RESOLUTION AUTHORIZING THE
PURCHASE OF REAL PROPERTY LOCATED AT 6701 17TH AVENUE SOUTH,
PENDING CONSIDERATION OF A FINDING OF CONSISTENCY BY THE
RICHFIELD PLANNING COMMISSION. (S. R. NO. 47)
Community Development Director John Stark presented staff report No. 47.
M/Supple, S/Howard to adopt a resolution authorizing the purchase of real property located at
6701 17th Avenue South, pending the consideration of a finding of consistency by the Richfield
Planning Commission.
RESOLUTION NO. 1316
RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY
LOCATED AT 6701 17TH AVENUE SOUTH
Commissioner Vrieze Daniels asked for clarification on the long-term costs of maintaining the
road.
Community Development Director Stark stated that he did not have the exact numbers, but
that staff did have the support of the Public Works department for this acquisition.
Executive Director Devich responded that it long-term makes sense for holding and
maintaining this property. He provided examples for the use of this property in the short term holding.
Commissioner Vrieze Daniels explained her concerns that the staff report did not include the
long-term costs and implications of the use of the property. She stated her concern for the spending of
government money.
Executive Director Devich requested that any need for more information in staff reports can be
made in advance of the meetings.
Commissioner Elliot suggested a change to the Purchase Agreement for consistency.
Commissioner Howard stated his support for the acquisition, from a practical and fiscal
standpoint.
Commissioner Vrieze Daniels stated she plans to vote against the acquisition of the property.
Motion carried 3-1, with Commissioner Vrieze Daniels voting nay.
Item #4
CONSIDERATION OF THE ADOPTION OF A RESOLUTION APPROVING A FAIR
HOUSING POLICY. (S.R. NO. 49)
HRA Meeting Minutes -3- November 19, 2018
Housing Manager Julie Urban presented Staff Report No. 49.
M/Howard, S/Vrieze Daniels to adopt a resolution approving a Fair Housing Policy.
RESOLUTION NO. 1317
RESOLUTION APPROVING THE ADOPTION OF A FAIR HOUSING
POLICY
Commissioner Howard supported the policy and its work in tandem with the Inclusionary
Housing Policy.
Commissioner Vrieze Daniels stated her support, especially in regards to soliciting community
input as we move forward.
Chair Supple agreed and added her support.
Motion carried 4-0.
Item #5
CONSIDERATION OF THE APPROVAL OF A CONTRACT FOR PRIVATE
DEVELOPMENT BETWEEN THE HOUSING AND REDEVELOPMENT
AUTHORITY AND ENDRES CUSTOM HOMES, INC. FOR THE
REDEVELOPMENT OF 6933 OLIVER AVENUE S UNDER THE RICHFIELD
REDISCOVERED CREDIT PROGRAM. (S.R. NO. 50)
Housing Specialist Kate Aitchison presented Staff Report No. 50.
M/Elliott, S/Vrieze Daniels to approve and authorize execution of a Contract for Private
Development between the Housing and Redevelopment Authority and Endres Custom Homes, Inc.
for the redevelopment of 6933 Oliver Avenue S.
Commissioner Vrieze Daniels stated her appreciation for the inclusion of numbers regarding
both affordable and market-rate new construction.
Motion carried 4-0.
Item #6
CONSIDERATION OF THE APPROVAL OF A CONTRACT FOR PRIVATE
DEVELOPMENT BETWEEN THE HOUSING AND REDEVELOPMENT
AUTHORITY AND ENDRES CUSTOM HOMES, INC. FOR THE
REDEVELOPMENT OF 7420 SHERIDAN AVENUE S UNDER THE RICHFIELD
REDISCOVERED PROGRAM. (S.R. NO. 51)
Housing Specialist Kate Aitchison presented Staff Report No. 51.
M/Elliott, S/Howard to approve and authorize execution of a Contract for Private Development
between the Housing and Redevelopment Authority and Endres Custom Homes, Inc. for the
redevelopment of 7420 Sheridan Avenue S.
Motion carried 4-0.
Item #7
HRA DISCUSSION ITEMS
Chair Supple asked for clarification on the date of the January HRA meeting. Staff responded
that they will clarify the date with staff and the commissioners.
HRA Meeting Minutes -4- November 19, 2018
Chair Supple commended Executive Director Devich for his time and commitment to the HRA
and the city of Richfield.
Executive Director Devich stated his thanks and his appreciation for the HRA and his time
spent working with the body. He stated his appreciation for the community and for all the great
experiences he has had with the Housing and Redevelopment Authority.
Commissioner Elliott stated his appreciation for the hard work and dedication of Executive
Director Devich.
Commissioner Howard shared his appreciation for all that he has learned about
redevelopment from his time on the HRA.
Commissioner Vrieze Daniels also stated her appreciation of the dedication of Executive
Director Devich to making Richfield a great community.
Item #8
EXECUTIVE DIRECTOR REPORT
None.
Item #9
CLAIMS AND PAYROLL
M/Elliott, S/Howard that the following claims and payroll be approved:
U.S. BANK
Section 8 Checks: 130204-130287 $165,331.38
HRA Checks: 33544-33558 $ 41,494.43
TOTAL $206,825.81
Motion carried 4-0.
Item #10
ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:36 p.m.
Date Approved: January 15, 2019
HRA Chair
Kate Aitchison John Stark
Housing Specialist Executive Director
AGENDA SECTION:Consent Calendar
AGENDA ITEM #2.A.
S TAFF REPORT NO. 2
HOUSING AND RE DEVELOPMENT AUT HORIT Y
MEET ING
1/15/2019
RE P O RT P RE PA RE D B Y: C hris Regis, F inance D irector
O THE R D E PA RTM E NT RE V IE W: N/A
E X E C UTIV E D IRE C TO R RE V IE W: J ohn S tark, E xecutive D irector
1/2/2019
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consideration of the adoption of resolutions designating official depositories for the Housing and
Redevelopment Authority for 2019, including the approval of collateral.
E X E C UT IV E S UM M ARY:
I n compliance with Minnesota statutes, the Housing and Redevelopment Authority of Richfield (HRA) must
designate on an annual basis those financial institutions it does business with.
The following resolutions for the HRA Board’s consideration, designate U.S Bank/4M Fund as a depository of
HRA funds, and certain savings and loan associations, banks, credit unions and certain financial institutions
as depositories for the investment of HRA funds.
RE C O M M E ND E D AC T I O N:
By motion: Adopt the resolutions designating official depositories, with the understanding that the
H R A could not invest in any of the depositories beyond the level of insurance coverage of the pledged
collateral.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
N/A
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
I n accordance with Minnesota Statutes Section 118A.01 - 118A.06, the HRA of Richfield must
designate financial institutions annually. The institutions must pledge the collateral over and above
the amount of federal insurance, as public depositories.
U.S. Bank acts as the banking institution in the HRA’s banking arrangement with the 4M Fund.
Monies received, checks written, by the HRA, flow through U.S. Bank, however, at the end of
each business day, any proceeds remaining in HRA U.S. Bank accounts are swept to the 4M
Fund to be invested. Therefore, at the end of the business day the HRA accounts are zero, which
means the collateral requirements of Minnesota Statutes Section 118A.03 are not required.
Accordingly, U.S. Bank has met all other statutory requirements and should be considered as a
depository for the HRA’s vendor accounts and all savings deposits.
The HRA must also designate annually, certain savings and loan associations, banks, and credit
unions as official depositories for deposit and investment of certain HRA funds. W ith approval of
these official depositories, the HRA will be able to invest funds in these institutions, not exceeding
the federal insurance of $250,000.
Finally, a designation must be made for certain financial institutions as depositories for the
investment of HRA funds for 2019. These institutions, such as investment brokerage firms, offer
government securities in the manner required by law. These financial institutions include RB C
Capital Markets, Raymond J ames & Associates, Northland Securities, Oppenheimer & Co., W ells
Fargo I nstitutional Retirement and Trust, and the 4M Fund.
C.C R IT IC AL T IMIN G IS S U E S:
N/A
D.F IN AN C IAL IMPAC T:
N/A
E.L E GAL C ON S ID E R AT ION:
The HRA is required by Minnesota Statute 118A.01 - 118A.06, to designate as a depository of
funds, insured banks or thrift institutions. Any collateral so deposited is accompanied by an
assignment pledged to the HRA in the amount specified in the resolutions.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
The HRA could solicit other financial institutions for official depositories, but past relationships with the
depositories recommended have proven satisfactory for the City.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
N/A
AT TAC H ME N T S:
D escription Type
Resolution designating US B ank a depository of funds for
the HRA Resolution L etter
Resolution designating certain savings & L oan
associations, banks, and credit unions as depositories for
the investment of HRA funds
Resolution L etter
Resolution designating certain financial institutions as
depositories for the investment of HRA F unds Resolution L etter
RESOLUTION NO.
RESOLUTION DESIGNATING U.S. BANK A
DEPOSITORY OF FUNDS OF THE HRA OF RICHFIELD
FOR THE YEAR 2019
BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield as
follows:
That, in accordance with Minnesota Statutes, Section 118A.01- 118A.06, U.S.
Bank be, and hereby is designated a depository of the funds of the Housing and
Redevelopment Authority of Richfield, subject to modification and revocation at any time
by said Housing and Redevelopment Authority, and subject to the following terms and
conditions:
The said depository shall not be required to give bonds or other securities for
such deposits provided that the total sum thereof shall not at any time exceed in any
depository the sums for which its deposits are insured under the Acts of Congress of the
United States relating to insurance of bank deposits; but that in case such deposits in
any such depository shall at any time exceed such insured sum, said depository shall
immediately furnish bonds or other security for such excess according to law, approved
by the Housing and Redevelopment Authority of Richfield.
That said depository shall pay on demand all deposits therein; and shall pay all
time deposits, at or after the end of the period for which the same shall be deposited, on
demand.
BE IT FURTHER RESOLVED, that there shall be maintained a general account
in which shall be deposited all monies. The following officers or their facsimile
signatures shall sign checks on this account;
, CHAIR
JOHN STARK, EXECUTIVE DIRECTOR
BE IT FURTHER RESOLVED, that all funds remaining in the account at the end
of each business day will be transferred from U.S. Bank to the 4M Fund where funds
deposited are invested and insured.
Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota
this 15th day of January, 2019.
, Chair
ATTEST:
Erin Vrieze Daniels, Secretary
RESOLUTION NO.
RESOLUTION DESIGNATING CERTAIN SAVING AND
LOAN ASSOCIATIONS, BANKS AND CREDIT UNIONS
AS DEPOSITORIES FOR THE INVESTMENT OF
HOUSING AND REDEVELOPMENT AUTHORITY OF
RICHFIELD FUNDS IN 2019
WHEREAS, pursuant to Minnesota Statutes, Sections 118A.01 – 118A.06,
municipal funds may be deposited in any Savings and Loan Association, Bank or Credit
Union which has its deposits insured by the Federal Deposit Insurance Corporation
(FDIC), or National Credit Union Administration (NCUA); and
WHEREAS, the amount of said deposits may not exceed the FDIC/NCUA
insurance covering such deposits which insurance amount is presently $250,000; and
WHEREAS, the deposit of Housing and Redevelopment Authority funds in
Savings and Loan Associations and Banks would provide greater flexibility in the
Housing and Redevelopment Authority’s investment program and maximize interest
income thereon.
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority of Richfield, Minnesota, as follows:
1. It is hereby found and determined that it is in the best interest of the proper
management of Housing and Redevelopment Authority funds that certain
Savings and Loan Association and Banks be designated as additional
depositories for Housing and Redevelopment Authority funds for 2019.
2. It is further found and determined that the purpose of such depository
designation is to facilitate the proper and advantageous investments of
Housing and Redevelopment Authority funds and that such designation is not
exclusive nor does it preclude the deposit of any Housing and
Redevelopment Authority funds in other officially designated depositories of
the Housing and Redevelopment Authority.
3. The Finance Director is hereby authorized to deposit Housing and
Redevelopment Authority funds in various depositories up to the amount of
$250,000, or such other amount as may be subsequently permitted by law,
such deposits to be in the form of demand accounts, payable to the Housing
and Redevelopment Authority of Richfield on the signatures of the Housing
and Redevelopment Authority Finance Director. Such deposits may be made
and withdrawn from time to time by the Finance Director as his best judgment
and the interests of the Housing and Redevelopment Authority dictates.
4. The investment of funds and the reporting thereof pursuant to this resolution
shall be conducted in accordance with established policies of the Housing
and Redevelopment Authority regarding the investment of Housing and
Redevelopment Authority funds.
Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota
this 15th day of January, 2019.
, Chair
ATTEST:
Erin Vrieze Daniels, Secretary
RESOLUTION NO.
RESOLUTION DESIGNATING CERTAIN FINANCIAL
INSTITUTIONS AS DEPOSITORIES FOR THE
INVESTMENT OF HOUSING AND REDEVELOPMENT
AUTHORITY OF RICHFIELD FUNDS IN 2019
WHEREAS, the Housing and Redevelopment Authority of Richfield has money
which is available for investment; and
WHEREAS, different financial institutions offer different rates of return on
investments; and
WHEREAS, the Housing and Redevelopment Authority of Richfield shall purchase
U. S. Treasury Bills, U. S. Treasury Notes and other such government securities in the
manner required by law from the institution offering the highest rate to the Housing and
Redevelopment Authority of Richfield providing greater flexibility in the investment
program and maximize interest income thereon.
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority of Richfield, Minnesota, in accordance with Minnesota Statutes, Sections
118A.01 – 118A.06, as follows:
1. It is hereby found and determined that it is in the best interest of the proper
management of Housing and Redevelopment Authority of Richfield funds that
certain financial institutions be designated as additional depositories for
Housing and Redevelopment Authority of Richfield funds for 2019.
2. The following financial institutions designated as depositories for the Housing
and Redevelopment Authority of Richfield funds:
RBC Capital Markets. Raymond James & Assoc.
4M Fund Oppenheimer & Co.
Wells Fargo Institutional Retirement & Trust
Northland Securities, Inc.
3. The Finance Director is hereby authorized to deposit the Housing and
Redevelopment Authority of Richfield funds in any or all of the depositories
herein designated. Such deposits may be made and withdrawn from time to
time by the Finance Director’s judgment and as the interest of the Housing
and Redevelopment Authority of Richfield dictates.
4. The investment of funds and the reporting thereof pursuant to this resolution
shall be conducted in accordance with established policies regarding the
investment of these funds.
Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota
this 15th day of January, 2019.
, Chair
ATTEST:
Erin Vrieze Daniels, Secretary
AGENDA SECTION:Consent Calendar
AGENDA ITEM #2.B.
S TAFF REPORT NO. 3
HOUSING AND RE DEVELOPMENT AUT HORIT Y
MEET ING
1/15/2019
RE P O RT P RE PA RE D B Y: J ulie Urban, Housing Manager
O THE R D E PA RTM E NT RE V IE W: N/A
E X E C UTIV E D IRE C TO R RE V IE W: J ohn S tark, E xecutive D irector
1/7/2019
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consideration of the approval of an amended Contract with the Center for Energy and Environment to
provide loan and remodeling advising services to Richfield homeowners for 2019.
E X E C UT IV E S UM M ARY:
The Housing and Redevelopment Authority (HRA) has contracted with the Center for Energy and
Environment's Lending Center (C E E) to provide loan and remodeling advising services to Richfield residents
since 2017.
Approval of a amended Contract is needed for C E E to continue providing services to Richfield homeowners.
The proposed Contract amendment includes the following changes:
1. An extension of services through December 31, 2019.
2. An annual administration fee of $500.
Costs for loan origination and remodeling adviser visits remain the same.
RE C O M M E ND E D AC T I O N:
By motion: Approve an amended Contract with the Center for Energy and Environment to provide
lending and remodeling advising services for 2019.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
C E E's Lending Center has extensive experience in providing lending and remodeling services and
offers these services to several communities in the metro area.
I n 2018, C E E provided 44 remodeling advisor visits and originated 9 Fix-Up Fund loans.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
Extending the Contract with C E E would enable the City to continue offering valuable remodeling
resources to its residents and meet the Comprehensive Plan goal of supporting the rehabilitation
and upgrading of the existing housing stock.
C.C R IT IC AL T IMIN G IS S U E S:
The current Contract with C E E expired on December 31, 2018. An amended Contract is
necessary in order to continue offering lending and remodeling services to Richfield residents.
D.F IN AN C IAL IMPAC T:
The HRA would pay C E E a $500 administrative fee, a loan origination fee of $125 for each loan
processed, and $225 for each remodeling advising visit.
Funds are designated in the 2019 budget for these expenses.
I n addition, HRA and Minnesota Housing funds are available to write down the Fix-Up Fund
interest rate to three percent.
E.L E GAL C ON S ID E R AT ION:
The HRA Attorney reviewed the original Contract.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Decide not to approve the amendment to the Contract.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
N/A
AT TAC H ME N T S:
D escription Type
C ontract A mendment C ontract/A greement
E xhibit A -1: P rogram Guidelines C ontract/A greement
E xhibit B -1: B udget C ontract/A greement
C:\Program Files (x86)\neevia.com\docConverterPro\temp\NVDC\C4ABC66C-6883-437D-AA05-
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AMENDMENT 1 to the LOAN ORIGINATION AGREEMENT
Between
HOUSING AND REDEVOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD
And
CENTER FOR ENERGY AND ENVIRONMENT
City of Richfield Home Improvement Loan Program
The Agreement made the 1st day of October, 2017 by and between the HOUSING AND
REDEVOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, with offices at
6700 Portland Ave, Richfield, MN 55423, (the “Authority”), and the CENTER FOR ENERGY
AND ENVIRONMENT, with its offices at 212 3rd Avenue North, Suite 560, Minneapolis,
Minnesota 55401 (“CEE”) is hereby amended.
Exhibit A shall be replaced by Exhibit A1 (attached)
Section 2. Compensation of the agreement shall be amended to read:
2.1 The Authority shall compensate CEE for services provided under this agreement
according to the following schedule and more fully described in Exhibit B1 attached hereto:
Annual Administration Fee $500
The Authority shall pay an Annual Administration Fee on January 1st of each year this
contract is active. This shall cover the cost of one CEE staff to attend home shows, the
City of Richfield Home Tour, meetings and contract renewals.
Loan Origination Fee $125
The Authority shall pay CEE an Origination Fee for each loan closed using the Authority
Funded Program to subsidize the Minnesota Housing Finance Agency (MHFA) interest
rate. The Origination Fee shall compensate CEE for assisting borrowers with loan
applications, loan closing and other direct costs of processing loans. Mortgage filing
fees, document preparation, credit report, flood, title work and a 1% Origination fee shall
be paid by the borrower. CEE shall provide a copy of the MHFA purchase approval as
documentation of the loan closing.
Section 5. Term and Termination of the agreement shall read:
5.1
Unless earlier terminated as provided in the following paragraphs, this Agreement shall
become effective on October 1, 2017 and continue through December 31, 2019.
C:\Program Files (x86)\neevia.com\docConverterPro\temp\NVDC\C4ABC66C-6883-437D-AA05-
CBB406036DD2\Richfield.5016.1.Contract_Amendment_1_2019_Richfield_(DRAFT).doc 12/27/2018
All other sections of the contract shall remain as written in the original and amended agreements.
IN WITNESS WHEREOF, the parties hereunder set their hands as of the date written below:
HOUSING AND REDEVOPMENT
AUTHORITY IN AND FOR THE CITY
OF RICHFIELD
CENTER FOR ENERGY AND
ENVIRONMENT
By ___________________________ By __________________________
Chairperson
Date __________________________
Date _________________________
By ___________________________ TAX ID 41-1647799
Executive Director
Date __________________________
Exhibit A Page 1
Agreement between Richfield Housing and Redevelopment Authority and Center for Energy and Environment
EXHIBIT A1
PROGRAM GUIDELINES
This document includes guidelines for the
MHFA Interest Subsidy Program
Exhibit A Page 2
Agreement between Richfield Housing and Redevelopment Authority and Center for Energy and Environment
RICHFIELD LOAN PROGRAM GUIDELINES
The HOUSING AND REDEVELOPMENT AUTHORITY is making funds available for homeowners to assist
with home maintenance and energy improvements. The Richfield Interest Subsidy Program is designed
to supplement existing loan programs available from MHFA, CEE, private lenders and other housing
resources. This program is not intended to be the sole source of improvement funds available to the
City. Center for Energy and Environment shall serve as the administrator for the Richfield Interest
Subsidy Program and will secure the most beneficial financing based on the borrower’s needs
independent of the funding source.
Richfield Interest Subsidy Program
Interest Rate: 3% fixed
Amortization Type: Amortizing. Closed-end (Monthly Payments Required)
Loan Amount: Minimum of $2,000 and Maximum of $50,000.
Total Project Cost: The borrower must have sufficient funds necessary to cover the cost of the entire
project (as outlined in the bid(s). Additional funds may come from personal savings, gifts, or other loan
funds.
Loan term: Generally, one year per $1,000 borrowed. This will be somewhat flexible depending on the
size of the loan and the borrower’s ability to repay the loan. The minimum term is 1 year; the maximum
term will be 20 years.
Eligible Properties: 1-4 unit owner-occupied properties located within the geographical boundaries of
the City of Richfield. Townhomes and Condominiums are eligible, subject to Association Bylaws.
Properties may be held in a Contract for Deed.
Ineligible Properties: Dwellings with more than 4 units, cooperatives, manufactured homes, time
shares, properties held in the name of a trust and properties used for commercial purposes.
Eligible Borrowers: All borrowers must be legal residents of the United States, as evidenced by a social
security number, Including: U.S. Citizens, Permanent Resident Aliens, Non-Permanent Resident Aliens.
TAX IDENTIFICATION NUMBERS (ITIN) ARE NOT ACCEPTABLE.
Ineligible Borrowers: Including but not limited to: - Businesses, Foreign Nationals, Non-Occupant Co-
Borrowers, and Properties held in the name of a trust.
Exhibit A Page 3
Agreement between Richfield Housing and Redevelopment Authority and Center for Energy and Environment
Ownership/Occupancy: Owner- occupied only.
Loan - to - Value Ratio: The ratio of all loans secured by the property, including the new loan, should
not exceed 110% of the property value. Half of the improvement value may be added to the initial
property value.
Income Limit: The property owner’s household income shall not exceed 115% of the HUD Regional
Median Income based on household size or the MHFA income limit, whichever is less. Income for
eligibility will be determined by the projected income for the next 12 months per MHFA guidelines. This
limit adjusts annually.
Debt - to - Income Ratio: Applicant must have the ability to repay the loan. An applicant who has a debt
to income ratio in excess of 48% will be ineligible to receive financing.
Credit Requirements: All borrowers must have a minimum credit score of 620 and: 1) All mortgage
payments must be current and reflect no 30 day late payments history in the past 12 month period
(without reasonable explanation) 2) All real estate taxes must be current. 3) No outstanding
judgements or collections (excluding medical). 4) Bankruptcy must have been discharged for at least 18
months prior to loan closing. 5) The redemption period on prior foreclosures must have occurred at
least 18 months prior to the loan application date. 6) Generally, no more than two 60-day late
payments on credit report. Any 60 day late requires a documented explanation and reasonable reasons;
medical, unemployment, divorce. 7) No defaulted government loans.
Multiple Loans per Property: More than one loan per property is allowed, however, the outstanding
balance(s) cannot exceed $50,000.
Eligible Use of Funds: Same as the current MHFA guidelines
Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless
due to emergency. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment,
saunas, whirlpools, etc.), furniture, non-permanent appliances , and funds for working capital, debt
service, homeowner labor or refinancing existing debts are NOT allowed.
Bids: Only one bid/estimate is are required. All contractors must be properly licensed
Sweat Equity / Homeowner Labor: Work may be performed by property owners on a “sweat equity”
basis. Loan funds may be used only for the purchase of materials. Loan funds cannot be used to rent
tools/ equipment or compensate for labor. The property owner will provide evidence to CEE that they
have the ability to complete the work and complete a Homeowner Labor Agreement.
Remodeling Advisor Visit (RAV): The Remodeling Advisor Visit provides rehabilitation and/or
remodeling advice upon request of the resident. The intent is to help residents improve their homes by
providing technical assistance before and during the bidding and construction process. All home-owners
are eligible for this service regardless if applying for the Richfield Interest Subsidy Program or not. This
visit is not required.
Loan Security: Determined by MHFA requirements.
Exhibit A Page 4
Agreement between Richfield Housing and Redevelopment Authority and Center for Energy and Environment
Borrower Fees: Borrower will be responsible for a 1% origination Fee (which may be financed),
mortgage filing and service fees, flood certificate and credit report.
Underwriting Decision: Applicants must have acceptable credit history. CEE will approve or deny loans
based on a credit report, income verification and other criteria as deemed necessary through CEE’s
underwriting guidelines. CEE’s decision shall be final.
Work Completion: All work must be completed within 9 months of the loan closing.
General Program Conditions
Application Processing: Loans will be distributed on a first come first serve basis as borrowers qualify.
Applicants must provide a completed application package including the following in order to be
considered for funding.
Completed and signed application form
Proof of income
Proof of Identity (drivers license, passport, etc.)
Bids or estimates for proposed projects
Other miscellaneous documents that may be required.
Program Costs: Loan origination, interest subsidy and remodeling advisor visit fees will be paid out of
the Program Budget. Loan program marketing efforts will be billed directly to the City of Richfield and is
a separate expense should the city choose to commission CEE for marketing support
Total Project Cost: It is the borrower’s responsibility to obtain the amount of funds necessary to finance
the entire cost of the work. In the event the final cost exceeds the original loan amount, the borrower
must obtain the additional funds and show verification of the additional funds in order to be approved
for the loan.
Disbursement Process: Funds are disbursed to the borrower(s)
Exhibit B
EXHIBIT B1
TOTAL PROGRAM BUDGET $41,250
RICHFIELD LOAN PROGRAM BUDGET
A. MHFA Interest Subsidy Program Budget Allocation (includes Annual Administration Fee,
Origination Fees and Interest Subsidy): 2019: $26,625
Remodeling Advisor Visit Budget: 2019: $14,625
Budget Notes:
1. CEE shall submit monthly invoices for origination fees, interest subsidy and remodeling advisor
visits for that period.
2. Services performed by CEE will initially be funded from the Total Program Budget as stated
above and paid in accordance with the following schedule.
(1) Annual Administration Fee $500 (one time)
(2) Origination Fee: MHFA Interest Subsidy $125.00 per loan closed
(3) MHFA Interest Subsidy $varies on loan amount and term
(4) Remodeling Advisor Visit $225.00 per inspection
3. Marketing
Marketing efforts will be supported by CEE and marketing costs are not included in the
administrative budget. Hourly rates are inclusive of all overhead expenses and will be charged
only for hours directly related to the labor of all program marketing. CEE will also be reimbursed
by City of Richfield for any non-labor, out-of-pocket expenses relating to these services on a
dollar-for-dollar basis.
AGENDA SECTION:Consent Calendar
AGENDA ITEM #2.C.
S TAFF REPORT NO. 4
HOUSING AND RE DEVELOPMENT AUT HORIT Y
MEET ING
1/15/2019
RE P O RT P RE PA RE D B Y: J ulie Urban, Housing Manager
O THE R D E PA RTM E NT RE V IE W: N/A
E X E C UTIV E D IRE C TO R RE V IE W: J ohn S tark, E xecutive D irector
1/7/2019
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consideration of the adoption of a resolution approving the Assignment and Assumption of Contract
between N H H Companies, L LC, C P II Development, L LC, and the Housing and Redevelopment
Authority.
E X E C UT IV E S UM M ARY:
On September 17, 2018, NHH Companies, L L C, (NHH) entered into a Contract for Private Development
(Contract) with the Richfield Housing and Redevelopment Authority (HRA) for the development of the eastern
half of the Cedar Point I I area with 218 units of market-rate apartments. NHH is requesting to assign their
obligations under the Contract to C PII Development, LL C. C PII Development, LL C, is a subsidiary
of N H H and T he Simmons Group.
Section 8.2 of the Contract allows NHH to assign its rights and duties under the Contract to another entity
with the approval of the HRA, if: (a) the proposed transferee has the qualifications and financial
responsibility, in the reasonable judgement of the H R A, necessary and adequate to fulfill the
obligations undertaking in the Contract Agreement; and (b) the proposed transferee expressly
assumes all of the obligations under the Contract and agrees to be subject to all of the conditions
and restrictions to which N H H is subject to.
Staff feels that the company has the qualifications and financial capability to fulfill the obligations in the
Contract, and they will assume all the obligations in the Contract for Private Development.
RE C O M M E ND E D AC T I O N:
By motion: Adopt a resolution approving the Assignment and Assumption of Contract to C P II
Development, L LC.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
The Cedar Point I I development area (16th Avenue to Richfield Parkway, 63rd Street to 65th
Street) has been identified for redevelopment as multi-family housing in the Cedar Corridor
Master Plan since 2004.
The HRA entered into a Contract for Private Development with NHH Companies, L L C, on
September 17, 2018, for the development of the eastern half of the Cedar Point I I area with 218
units of market-rate rental housing.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The Cedar Point I I development area is guided for high-density residential development in the
Comprehensive Plan.
C.C R IT IC AL T IMIN G IS S U E S:
The Contract needs to be assigned to the entity, C P I I Development, LLC, which represents both
developers, in order to proceed with the development. Closing on the HRA's property is
anticipated in March 2019 with construction beginning in April.
D.F IN AN C IAL IMPAC T:
The financial terms of the development remain the same.
The development is financially feasible with the two development partners/investors.
E.L E GAL C ON S ID E R AT ION:
The HRA Attorney drafted the Assignment and Assumption of Contract.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Do not approve the Assignment and Assumption of Contract.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
Representative of the developer
AT TAC H ME N T S:
D escription Type
Resolution Resolution L etter
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION NO. ______
RESOLUTION APPROVING ASSIGNMENT OF CONTRACT FOR PRIVATE
DEVELOPMENT
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota
(the “Authority”) has entered into a Contract for Private Development, dated September 17, 2018 (the
“Contract”) with NHH Companies, L.L.C., a Minnesota limited liability company (the “Original
Developer”); and
WHEREAS, pursuant to the Contract, the Original Developer has proposed to construct (i) a
multifamily housing development with approximately 218 units; (ii) a parking ramp with approximately 188
spaces; and (iii) necessary public infrastructure, including streets and utilities (the “Minimum
Improvements”) on certain land (the “Development Property”) within the Cedar Avenue Tax Increment
Financing District; and
WHEREAS, the Original Developer has proposed to assign the Contract to an affiliated entity, CPII
Development LLC, a Minnesota limited liability company (the “Assignee”), pursuant to an Assignment of
Contract for Private Development (the “Assignment of Contract”), between the Original Developer, the
Assignee, and the Authority and the Assignee has proposed to assume all of the Original Developer’s rights
and duties under the Contract; and
WHEREAS, there has been presented to the Board of Commissioners of the Authority (the “Board”)
the Assignment of Contract; and
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota that:
1. The Assignment of Contract is hereby in all respects authorized, approved, and confirmed.
The Chair of the Board and the Executive Director are hereby authorized and directed to execute the
Assignment of Contract for and on behalf of the Authority in substantially the form now on file with the
Community Development Director but with such modifications as shall be deemed necessary, desirable, or
appropriate, the execution thereof to constitute conclusive evidence of their approval of any and all
modifications therein.
2. The Chair and the Executive Director are hereby authorized to execute and deliver any other
documents or certificates deemed necessary to carry out the intentions of this resolution and the Assignment
of Contract.
549947v2 JAE RC125-366
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota
this 15th day of January, 2019.
Chair
Secretary
AGENDA SECTION:Consent Calendar
AGENDA ITEM #2.D.
S TAFF REPORT NO. 5
HOUSING AND RE DEVELOPMENT AUT HORIT Y
MEET ING
1/15/2019
RE P O RT P RE PA RE D B Y: J ulie Urban, Housing Manager
O THE R D E PA RTM E NT RE V IE W: N/A
E X E C UTIV E D IRE C TO R RE V IE W: J ohn S tark, E xecutive D irector
1/7/2019
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consideration of the adoption of a resolution approving execution of a Right of Entry Agreement with
Cedar Point Investments, LL C, for the Cedar Point II properties owned by the Housing and
Redevelopment Authority.
E X E C UT IV E S UM M ARY:
On August 20 and September 17, 2018, the Housing and Redevelopment Authority (HRA) approved
Contracts for Private Development with NHH Companies, LLC (Developer), for the development of the Cedar
Point I I area (63rd to 65th Streets and 16th Avenue to Richfield Parkway). The Developer, now doing
business as Cedar Point I nvestments, LLC, is ready to begin construction on the townhomes on the western
half of the site and is seeking a Right of Entry Agreement (Agreement) in order to conduct construction
staging on the eastern half of the site, which is still owned by the HRA.
Construction of the apartments on the eastern half of the site is not scheduled to begin until later in the
Spring; therefore, the HRA will retain ownership of this property until apartment construction is ready to
commence. Because much of the construction activity (e.g., grading, staging, entrances, sediment and
erosion control) will cross over all of the property, the Agreement is needed to allow construction on the
townhomes to move forward.
The proposed Agreement authorizes the Developer to enter the HRA property to conduct construction-related
activities.
RE C O M M E ND E D AC T I O N:
By motion: Adopt a resolution approving execution of a Right of Entry Agreement with Cedar Point
Investments, LL C, for the Cedar Point II properties owned by the Housing and Redevelopment
Authority.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
On May 21, 2018, the HRA approved a Right of Entry Agreement with NHH Companies, L L C, to
conduct pre-construction activities on HRA-owned property. That Right of Entry Agreement
expired on December 30, 2018.
The HRA approved Contracts for Private Development for the construction of 218 apartments and
up to 80 townhomes on August 20 and September 17, 2018.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The proposed development is consistent with the City's Comprehensive Plan and the Cedar
Corridor Master Plan for the area.
C.C R IT IC AL T IMIN G IS S U E S:
The Agreement expires when all necessary improvements, as required in the Contract for Private
Development, are completed.
Closing on all HRA-owned property in the development area will not occur until spring. An
agreement allowing construction staging and activity to occur prior to that closing will enable
townhome construction to begin yet this winter.
D.F IN AN C IAL IMPAC T:
There is no financial impact to the HRA. All costs for the work to be done, any liability expense,
and restoration of any damage done to the property is at the Developer's expense.
E.L E GAL C ON S ID E R AT ION:
The HRA Attorney prepared the Right of Entry Agreement.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
The HRA may choose to not authorize execution of a Right of Entry Agreement at this time.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
N/A
AT TAC H ME N T S:
D escription Type
Resolution Resolution L etter
Right-of-E ntry A greement C ontract/A greement
550711v1 JAE RC125-366
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION NO. ______
RESOLUTION APPROVING THE EXECUTION AND DELIVERY OF A RIGHT OF ENTRY
AGREEMENT WITH CEDAR POINT INVESTMENTS LLC
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota
(the “Authority”) owns certain real property located within the City of Richfield, Minnesota (the “Authority
Property”); and
WHEREAS, pursuant to a Contract for Private Development, dated September 17, 2018 (the
“Contract”), between the Authority and Cedar Point Investments LLC, a Minnesota limited liability company
or any assigns approved by the Authority (the “Developer”), the Developer has agreed to acquire certain real
property located within the City of Richfield, Minnesota (the “Development Property”) and to construct
(i) approximately 80 affordable owner-occupied townhomes; (ii) two parking stalls per unit of
owner-occupied housing; and (iii) necessary public infrastructure, including streets and utilities (the
“Minimum Improvements”) on the Development Property, all subject to the conditions set forth in the
Contract; and
WHEREAS, the Authority has proposed to provide the Developer with the right to enter the
Authority Property for construction staging purposes to facilitate the development of the Minimum
Improvements on the Development Property; and
WHEREAS, there has been presented before this Board of Commissioners of the Authority a form of
Right of Entry Agreement (the “Right of Entry Agreement”) proposed to be entered into between the
Authority and the Developer, pursuant to which the Authority will grant the Developer the right to enter the
Authority Property as necessary for construction staging purposes to facilitate the development of the
Minimum Improvements on the Development Property, subject to the terms and conditions provided therein;
and
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota as follows:
1. The Right of Entry Agreement is hereby in all respects authorized, approved, and confirmed,
and the Chair and the Executive Director are hereby authorized and directed to execute the Right of Entry
Agreement for and on behalf of the Authority in substantially the form now on file with the Community
Development Director but with such modifications as shall be deemed necessary, desirable, or appropriate,
the execution thereof to constitute conclusive evidence of their approval of any and all modifications therein.
2. The Chair and the Executive Director are hereby authorized to execute and deliver any and
all documents deemed necessary to carry out the intentions of this resolution.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota
this 15th day of January, 2019.
Chair
2
550711v1 JAE RC125-366
Secretary
1
RIGHT OF ENTRY AGREEMENT
THIS RIGHT OF ENTRY AGREEMENT (the “Agreement”) is made and entered into on
__________, 2019, by and between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE CITY OF RICHFIELD, a public body corporate and politic under the laws of the State of
Minnesota (the “Authority”), and CEDAR POINT INVESTMENTS LLC, a Minnesota limited liability
company (the “Developer”).
WHEREAs, the Authority is the owner in fee simple of certain real estate in the City of Richfield,
Minnesota, which is legally described in EXHIBIT A attached hereto and incorporated herein (the
“Authority Property”); and
WHEREAS, the Developer acquired certain real estate in the City of Richfield, Minnesota, which
is legally described in EXHIBIT B attached hereto and incorporated herein (the “Development
Property”), from the Authority under the terms of the Contract for Private Development, dated August 20,
2018 (the “Development Agreement”), between the Authority and the Developer, subject to the
conditions set forth in Section 3.2 of the Development Agreement; and
WHEREAS, pursuant to Section 4.1 of the Development Agreement, the Developer agreed to
construct (i) approximately 80 affordable owner-occupied townhomes; (ii) two parking stalls per unit of
owner-occupied housing; and (iii) necessary public infrastructure, including streets and utilities (the
“Minimum Improvements”) on the Development Property; and
WHEREAS, the Authority has agreed to allow the Developer the right to enter the Authority
Property as necessary for construction staging purposes to facilitate the development of the Minimum
Improvements on the Development Property; and
NOW THEREFORE, the parties agree as follows:
1. Access. The Authority grants to the Developer, upon the terms and conditions stated
below, on a non-exclusive basis, the permission and right to access and use the Authority Property for
construction staging purposes and to facilitate the construction of the Minimum Improvements. The
Developer shall not construct any structures or improvements on the Authority Property without the prior
written consent of the Authority, unless such structures or improvements are described in construction
plans approved by the Authority. Such right of access and use is granted only for the term of this
Agreement, as set forth below, and only for the purposes set forth above.
2. Term. The term of this Agreement (the “Term of this Agreement”) shall commence on
the day that this Agreement is executed and it shall continue until the Developer has completed all
contemplated Improvements.
3. Safety and Maintenance. The Developer agrees that if there is damage or changes to the
Authority Property as a result of the construction of the Improvements, the Developer will, after
completion of the Improvements, restore the Authority Property to substantially the same condition as it
previously was and remove all rubbish, waste, and debris in connection therewith. The Developer also
agrees not to use the Authority Property for the production, storage, deposit or disposal of toxic,
dangerous or hazardous substances, pollutants, wastes or contaminations, including but not limited to,
nuclear fuel or wastes that are considered hazardous by law and regulations. The Developer shall
indemnify the Authority, its officials, employees, agents and others acting on behalf of the Authority,
hold it harmless against any and all loss, damage, liability, claim, cost or expenses (specifically including
reasonable attorneys’ fees and other costs and expenses of investigation and defense of any sort), resulting
545753v2 JAE RC125-366 2
from injury or death to any person or from loss of or damage to any property, however caused, which
occurs on the Authority Property with respect to the production, storage, deposit or disposal of toxic,
dangerous or hazardous substance pollutants, wastes or contaminations by the Developer.
4. Hold Harmless and Indemnity. The Developer agrees to indemnify, defend, and hold
harmless the Authority and the City of Richfield, Minnesota (the “City”), their agents, officials and
employees from any and all claims, losses, damages, liabilities, causes of action, judgments, costs, or
expenses because of personal injury, death, or property damage caused by Developer or its officers,
employees, agents, contractors, or assigns’ use of the Authority Property. The Authority and the City
agree to indemnify, defend, and hold harmless the Developer, its agents, officers, and employees from
and against any and all claims, losses, damages, liabilities, causes of action, judgments, costs, or expenses
because of personal injury, death, or property damage caused by the Authority or the City or their
officials, employees, agents, contractors, or assigns’ entry into the Authority Property during the Term of
this Agreement.
5. Insurance. The Developer agrees to provide and maintain a liability insurance policy with
a general liability limit of at least $1,500,000 each occurrence throughout the Term of this Agreement and
to list the Authority as an “additional insured.” Said policy is limited to any person or persons working for
or under the Developer as employees, contractors, and agents. On execution of this Agreement, the
Developer shall provide the Authority with evidence that is satisfactory to the Authority that the insurance
coverage required hereunder will be in full force and effect during the Term of this Agreement. In the
event that any insurance renews or is terminated during the Term of this Agreement, the Developer shall
promptly provide the Authority with evidence that such coverage will be renewed or replaced upon
termination with insurance that complies with these provisions. At the request of the Authority, the
Developer shall, in addition to providing such evidence of insurance, promptly furnish the Authority with
a complete (and if so requested, insurer-certified) copy of the insurance policy intended to provide
coverage required by this Agreement.
6. Assignment. The Developer shall not assign or otherwise transfer this Agreement, any
right or interest in this Agreement or any right or interest in the Authority Property without the express
written consent of the Authority, which consent shall not be unreasonably withheld.
7. Costs. The Developer shall be responsible to pay any fees, wages, and other charges and
expenses in any manner associated with the Developer’s activities under this Agreement.
8. Other Authority or Rights. The Developer shall bear the sole obligation of obtaining such
other authority or rights as it may need in addition to the rights provided in this Agreement for the use of
the Authority Property.
9. Liens and Encumbrances. The Developer shall keep the Authority Property free of all
liens and encumbrances arising out of its interest in or activities on the Authority Property.
10. Disclaimer of Warranty. The Developer has conducted its own investigation and
inspection of the Authority Property and is familiar with the physical condition of the Authority Property
and surrounding terrain, and is fully informed as to the existing conditions and limitations. The Authority
makes no representation or warranty as to the suitability of the Authority Property for use by the
Developer and no such representation, warranty, or any other representations are made by the Authority
or shall be implied by operation of law or otherwise. The Developer accepts the Authority Property in an
as-is, where-is condition with all faults, defects, and deficiencies.
545753v2 JAE RC125-366 3
11. Governing Law. The parties agree that the interpretation and construction of this
Agreement shall be governed by the laws of the State of Minnesota, without regard to such state’s conflict
of law provisions.
12. Notices and Demands. All notices, demands or other communications under this
Agreement shall be effective only if made in writing and shall be sufficiently given and deemed given
when delivered personally or mailed by certified mail (return receipt requested) or registered mail,
postage prepaid, properly addressed as follows:
To the Authority: Housing and Redevelopment Authority
in and for the City of Richfield, Minnesota
6700 Portland Ave. South
Richfield, MN 55423
Attn: Community Development Director
To the Developer: Cedar Point Investments LLC
7455 France Avenue South
Suite 351
Edina, Minnesota 55435
Attn: Adam Seraphine
or to such other person at such other address as that party may, from time to time, designate in writing and
forward to the other as provided in this Section.
13. Execution in Counterpart. This Agreement is executed in any number of counterparts, each
of which shall constitute one and the same instrument.
14. Amendment. This Agreement may be amended only by a written amendment signed by
both parties.
15. Relationship of Parties. Nothing in this Agreement shall be interpreted or construed as a
partnership or joint venture between the Authority and the Developer concerning the Developer’s use of
the Authority Property. This Agreement shall not be interpreted to be any type of lease or easement
affecting the Authority Property and does not convey an interest in the Authority Property to the
Developer.
16. Severance. Should any portion of this Agreement be declared invalid and unenforceable,
then such portion shall be deemed to be severed from this Agreement and shall not affect the remainder
thereof.
17. Default. If any default is made by the Developer in any of the agreements contained in this
Agreement which is not cured within 30 days of written notice from the Authority, it shall be lawful for
the Authority to declare the term ended and to enter the Authority Property either with or without legal
process, and to remove the Developer or any other person occupying the Authority Property, using such
force as may be necessary, without being liable for prosecution, or for damages, and to repossess the
Authority Property free and clear of any rights of the Developer.
18. Developer. With respect to the right to access and use the Authority Property granted to the
Developer in this Agreement, the term “Developer” shall include Developer’s agents, employees,
contractors, affiliates, and other representatives.
545753v2 JAE RC125-366 S-1
IN WITNESS WHEREOF, the parties have executed this Right of Entry Agreement as of the date
first above written.
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
RICHFIELD
By
Its Chair
By
Its Executive Director
545753v2 JAE RC125-366 S-2
Execution page of the Developer to the Right of Entry Agreement dated as of the date first written above.
CEDAR POINT INVESTMENTS, LLC
By:
Its: __________________________________________
545753v2 JAE RC125-366 A-1
EXHIBIT A
LEGAL DESCRIPTION OF THE AUTHORITY PROPERTY
Lots 9, 10, 11, 12, 13, 14, Block 1, Iverson’s Second Addition, according to the recorded plat thereof,
Hennepin County, Minnesota
Lots 9, 10, 11, 12, 13, 14, 15, 16, Block 2, Iverson’s Second Addition, according to the recorded plat
thereof, Hennepin County, Minnesota
545753v2 JAE RC125-366 B-1
EXHIBIT B
LEGAL DESCRIPTION OF THE DEVELOPMENT PROPERTY
Lots 3 and 6, Block 1, Iverson’s Second Addition, according to the recorded plat thereof, Hennepin
County, Minnesota
Lots 1 and 2, Block 2, Iverson’s Second Addition, according to the recorded plat thereof, Hennepin
County, Minnesota
AGENDA SECTION:Consent Calendar
AGENDA ITEM #2.E.
S TAFF REPORT NO. 6
HOUSING AND RE DEVELOPMENT AUT HORIT Y
MEET ING
1/15/2019
RE P O RT P RE PA RE D B Y: Melissa P oehlman, A sst. C ommunity D evelopment D irector
O THE R D E PA RTM E NT RE V IE W: N/A
E X E C UTIV E D IRE C TO R RE V IE W: J ohn S tark, E xecutive D irector
1/8/2019
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consideration of the adoption of a resolution approving collateral assignment of the Secondary
Developer Tax Increment Financing Note to be issued by the Richfield Housing and Redevelopment
Authority for the benefit of the Secondary Developer.
E X E C UT IV E S UM M ARY:
Lyndale Gardens, LLC ("Master Developer") is preparing to sell to Richfield Property Holdings, L L C and 15th
NB Property1 LLC (Secondary Developer) the property on which the apartment and townhome portion of the
approved project will be constructed. I n order to secure financing for the project, the Secondary Developer's
lender (Drake Bank) has required the Secondary Developer to assign all of its interests in the Secondary
Developer Tax I ncrement Financing (TI F) Note to Drake Bank.
T he collateral assignment of the Secondary Developer's interest in the revenue note (to Drake
Bank) provides that when the T IF Note is issued (contingent upon all requirements provided in the
Contract for Private Development), T IF Note payments will go directly to Drake Bank. Drake Bank
will have the right to exercise any rights of the Secondary Developer specifically related to the T IF
Note.
Section 3.4(c) of the Development Agreement allows for the assignment of the Secondary Developer TI F
Note to a lender that provides part of the financing for the construction of the Secondary Developer
I mprovements.
RE C O M M E ND E D AC T I O N:
By motion: Adopt a resolution approving the collateral assignment of the Secondary Developer Tax
Increment Financing Note.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
Lyndale Gardens LLC secured land-use approvals for the redevelopment of the north half of the
former Lyndale Garden Center site (approx. 63rd Street and Lyndale Avenue) in J une 2018. The
approved project includes 30 for sale condominiums, 8 rental townhomes, a 66-unit multifamily
apartment building, and approximately 6,000 square feet of retail space.
The HRA approved an Amended and Restated Contract for Private Development on J uly 17,
2018.
The Secondary Developer has submitted plans for construction of the 66-unit multifamily
apartment building and 8-unit townhome building to the Building I nspections Department for
review.
The mortgage lender for the construction of the apartment and townhome portions of the project
are requiring assignment of the Secondary Developer's TI F Note.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
Section 3.4(c) of the Development Agreement allows for the assignment of the Secondary
Developer TI F Note to a lender that provides part of the financing for the construction of the
Secondary Developer I mprovements.
C.C R IT IC AL T IMIN G IS S U E S:
Construction cannot begin until the lenders have assignment.
Land use approvals will expire in J une 2019 unless substantial work has been completed.
D.F IN AN C IAL IMPAC T:
Pursuant to the Contract for Private Development, the HRA has agreed to issue a TI F "Pay-As-
You-Go" TI F Note in the amount of $1,491,077 to the Secondary Developer. The TI F Note will be
issued only after the Master Developer has provided the HRA with evidence of sufficient qualified
costs.
E.L E GAL C ON S ID E R AT ION:
The Collateral Assignment of the Secondary Developer TI F Note was reviewed and approved by
the HRA Attorney.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Do not adopt the resolution.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
N/A
AT TAC H ME N T S:
D escription Type
Resolution Resolution L etter
C ollateral A ssignment E xhibit
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION NO. ______
RESOLUTION APPROVING COLLATERAL ASSIGNMENT OF SECONDARY DEVELOPER
TIF NOTE
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota
(the “Authority”) has entered into an Amended and Restated Contract for Private Development, dated
July 16, 2018 (the “Development Agreement”), between the Authority and Lyndale Gardens, LLC, a
Minnesota limited liability company (the “Master Developer”), pursuant to which the Master Developer, or a
secondary developer selected by the Master Developer, agreed to construct 8 rental townhome units and a
66-unit multifamily apartment complex, including 7 affordable residential units (collectively, the “Secondary
Developer Improvements”), on property located within the City of Richfield, Minnesota (the “Development
Property”); and
WHEREAS, to make the Secondary Developer Improvements economically feasible, the Authority
agreed to provide to the Master Developer a Tax Increment Limited Revenue Note (the “TIF Note”) in a
maximum principal amount of $1,491,077; and
WHEREAS, pursuant to an Agreement between Master Developer and Secondary Developer
executed in December 2018 (the “Master Developer/Secondary Developer Agreement”) between the Master
Developer and Richfield Property Holdings, LLC, a Minnesota limited liability company, and 15TH NB
Property1 LLC, a Minnesota limited liability company (together, the “Secondary Developer”), the Secondary
Developer agreed to construct the Secondary Developer Improvements as required under the Development
Agreement, and the Master Developer agreed to cause the Secondary Developer TIF Note defined in and
contemplated by the Development Agreement to be issued in favor of the Secondary Developer in place of
the TIF Note; and
WHEREAS, Drake Bank, a Minnesota banking corporation (the “Lender”), has agreed to make a
loan to the Secondary Developer (the “Lender Loan”) in the amount of $1,340,000 to finance in part the
development of the Secondary Developer Improvements; and
WHEREAS, prior to making the Loan, the Lender requires that the Secondary Developer assign all
of its interests in the Secondary Developer TIF Note to the Lender to secure the obligations of the Secondary
Developer with respect to the Lender Loan and that the Authority issue the Secondary Developer TIF Note
directly to the Lender; and
WHEREAS, the Secondary Developer is permitted under Section 3.4(c) of the Development
Agreement to assign the Secondary Developer TIF Note to the Lender; and
WHEREAS, there has been presented before this Board of Commissioners of the Authority a form of
Collateral Assignment of Secondary Developer TIF Note (the “Collateral Assignment”) proposed to be
entered into between the Authority, the Secondary Developer, and the Lender, pursuant to which the
Secondary Developer will assign its right, title, and interest in the Secondary Developer TIF Note to the
Lender, including the Secondary Developer’s right to receive payments under the Secondary Developer TIF
Note, and the Authority will issue the Secondary Developer TIF Note directly to the Lender; and
2
550749v1 JAE RC125-360
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota that:
1. The Collateral Assignment is hereby in all respects authorized, approved, and confirmed,
and the Chair and the Executive Director are hereby authorized and directed to execute the Collateral
Assignment for and on behalf of the Authority in substantially the form now on file with the Community
Development Director but with such modifications as shall be deemed necessary, desirable, or appropriate,
the execution thereof to constitute conclusive evidence of their approval of any and all modifications therein.
2. The Chair and the Executive Director are hereby authorized to execute and deliver any and
all documents deemed necessary to carry out the intentions of this resolution.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota
this 15th day of January, 2019.
Chair
__________________________________
Secretary
COLLATERAL ASSIGNMENT OF SECONDARY DEVELOPER TIF NOTE
THIS COLLATERAL ASSIGNMENT OF SECONDARY DEVELOPER TIF NOTE
(this “Agreement”) is made and entered into as of the ____ day of January, 2019, by and among
the HOUSING AND REDEVELOPMENT AUTHORITY OF AND FOR THE CITY OF
RICHFIELD, MINNESOTA, a public body corporate and politic organized under the laws of the
State of Minnesota (the “Authority”), RICHFIELD PROPERTY HOLDINGS, LLC, a Minnesota
limited liability company, and 15TH NB PROPERTY1 LLC, a Minnesota limited liability
company (collectively, the “Developer”), and DRAKE BANK, a Minnesota state banking
corporation (the “Lender”).
W I T N E S S E T H:
WHEREAS, the Authority and Lyndale Gardens, LLC (“Master Developer”) have
entered into that certain Amended and Restated Contract for Private Development dated as of
July 16, 2018 (the “Development Agreement”), concerning, amongst other things, the
construction by the Master Developer, or a secondary developer selected by Master Developer,
of 8 rental townhome units and a 66-unit multifamily apartment complex, including 7 affordable
residential units (as further described in the Development Agreement), on property legally
described on Exhibit A attached hereto and hereby made a part hereof (the “Project”); and
WHEREAS, pursuant to the Development Agreement, and provided the Master
Developer is in compliance with the requirements contained in the Development Agreement, the
Authority shall execute that certain Taxable Tax Increment Revenue Note, in the principal
amount of not more than $1,491,077, the form of which is attached as Schedule A to the
Development Agreement (the “TIF Note”); and
WHEREAS, Master Developer and Developer are parties to that certain Agreement
between Master Developer and Secondary Developer dated December 26, 2018 (the “Master
Developer/Secondary Developer Agreement”), pursuant to which Master Developer and
Developer have agreed that Developer will construct the Project as required under the
Development Agreement in exchange for the Master Developer’s agreement to cause the
Secondary Developer TIF Note to be issued in favor of Developer in lieu of the TIF Note
described above; and
WHEREAS, the Lender intends to make a loan to the Developer to be evidenced by,
among other things, a Promissory Note (the “Lender Note”) in the original principal amount of
$1,340,000.00 (the “Loan”), to finance in part the development of the Project; and
2
WHEREAS, the Lender has required, as a condition to the making of the Loan, that
(a) the Developer assign all of its interests in the Secondary Developer TIF Note to the Lender to
secure the obligations of the Developer to the Lender under the Lender Note (the Lender Note
and all documents executed in connection therewith are collectively referred to as the “Loan
Documents”), and (b) the Authority agrees to certain other matters, all as more fully contained
herein.
NOW THEREFORE, in consideration of the foregoing recitals and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto hereby agree as follows:
1. Assignment. The Developer hereby assigns to the Lender all of its right, title and
interest in the Secondary Developer TIF Note, including, without limitation, the right to receive
payments under the Secondary Developer TIF Note, to secure the Developer’s obligations under
the Loan Documents.
2. TIF Note. To perfect the Lender’s security interest in the Secondary Developer
TIF Note, at such time as the Authority issues the Secondary Developer TIF Note, the Authority
shall deliver the Secondary Developer TIF Note directly to the Lender, and the Developer shall
execute and deliver to the Lender an endorsement to the Secondary Developer TIF Note, all to be
held by the Lender pursuant to the terms of this Agreement. Until payment in full of the Lender
Note, the Developer authorizes and directs the Authority to make all payments under the
Secondary Developer TIF Note directly to the Lender, and the Lender shall apply any such
payments to amounts owing under the Lender Note.
3. Representations and Warranties of Developer. The Developer hereby represents
and warrants that there have been no prior assignments of the Secondary Developer TIF Note,
that the Secondary Developer TIF Note will be valid and enforceable and that neither the
Authority nor the Master Developer is in default thereunder and that all covenants, conditions
and agreements have been performed as required therein, except those not to be performed until
after the date hereof. The Developer agrees not to sell, assign, pledge, mortgage or otherwise
transfer or encumber its interest in the Secondary Developer TIF Note as long as this Agreement
is in effect. Subject to Section 4 hereof, the Developer hereby irrevocably constitutes and
appoints the Lender as its attorney-in-fact to demand, receive and enforce the Developer’s rights
with respect to the Secondary Developer TIF Note for and on behalf of and in the name of the
Developer, or, at the option of the Lender, in the name of the Lender, with the same force and
effect as the Developer could do if this Agreement had not been made.
4. Present Assignment. This Agreement shall constitute a perfected, absolute and
present assignment, provided that the Lender shall have no right under this Agreement to enforce
the provisions of the Secondary Developer TIF Note or exercise any of its rights or remedies
under this Agreement until an Event of Default (as that term is defined in the Lender Note) shall
occur and be continuing.
5. Event of Default. Upon the occurrence and during the continuance of an Event of
Default (as that term is defined in the Lender Note), the Lender may, without affecting any of its
rights or remedies against the Developer under any other instrument, document or agreement,
3
exercise its rights under this Agreement as the Developer’s attorney-in-fact in any manner
permitted by law and, in addition, the Lender shall have the right to exercise and enforce any and
all rights and remedies available after a default to a secured party under the Uniform Commercial
Code as adopted in the State of Minnesota. If notice to the Developer of any intended
disposition of collateral or of any intended action is required by law in any particular instance,
such notice shall be deemed commercially reasonable if given at least ten (10) days prior to the
intended disposition or other action.
6. Representations and Warranties of the Authority. The Authority hereby consents
and agrees to the terms and conditions of this Agreement. The Authority has not declared an
event of default under the Development Agreement.
7. No Assumption. The Authority acknowledges that the Lender is not a party to the
Development Agreement and by executing this Agreement does not become a party to the
Development Agreement, and specifically does not assume and shall not be bound by any
obligations of the Developer to the Authority under the Development Agreement.
8. Default Under Development Agreement. Notwithstanding anything to the
contrary in the Development Agreement, if the Lender exercises its rights under this Agreement
or under the Loan Documents, the Authority will not declare an event of default under the
Development Agreement; provided, however, that the Authority’s obligations under the
Development Agreement, and in any event, Authority’s obligation to make payments under the
Secondary Developer TIF Note is conditioned upon performance by the Developer or the Lender
or their successors of all of the Developer’s obligations under the Development Agreement to the
extent provided in the Development Agreement.
9. Notice from the Authority. So long as the Development Agreement remains in
effect, the Authority agrees to give to the Lender copies of notices of any event of default given
to the Developer under the Development Agreement.
10. Amendments. The Authority and the Developer agree that no change or
amendment shall be made to the terms of the Development Agreement or the Secondary
Developer TIF Note without the prior written consent of the Lender.
11. Waiver. This Agreement can be waived, modified, amended, terminated or
discharged only explicitly in writing signed by the parties hereto. A waiver by the Lender shall
be effective only in a specific instance and for the specific purpose given. Mere delay or failure
to act shall not preclude the exercise or enforcement of any of the Lender’s rights or remedies
hereunder. All rights and remedies of the Lender shall be cumulative and may be exercised
singularly or concurrently at the Lender’s option, and any exercise or enforcement of any one
such right or remedy shall neither be a condition to nor bar the exercise or enforcement of any
other.
12. Headings. The descriptive headings for the several sections of this Agreement are
inserted for convenience only and not to confine or limit any of the terms or provisions hereof.
13. Addresses for Notice. Any notice from, request, demand or communication
hereunder shall be deemed fully given if delivered or served by depositing the same with the
4
United States Postal Service, postage prepaid, certified or registered, addressed to the parties as
set forth below:
If to the Authority: Housing and Redevelopment Authority of and for
the City of Richfield, Minnesota
6700 Portland Avenue
Richfield, Minnesota 55423
Attention: Executive Director
If to the Developer: Richfield Property Holdings, LLC
15th NB Property1 LLC
c/o North Bay Companies
2316 4th Avenue South
Minneapolis, Minnesota 55404
If to the Lender: Drake Bank
60 East Plato Blvd, Suite 100
Saint Paul, Minnesota 55107
Attention: Daniel Batten
14. Transfer of Title to Lender. The Authority agrees that in the event the Lender, a
transferee of the Lender, or a purchaser at foreclosure sale, acquires title to the Project pursuant
to foreclosure, or a deed in lieu thereof, the Lender, transferee or purchaser shall not be bound by
the terms and conditions of the Development Agreement, except as expressly provided herein.
The Authority agrees that in the event the Lender, a transferee of the Lender or a purchaser at
foreclosure sale acquires title to the Project pursuant to a foreclosure sale or a deed in lieu
thereof, then the Lender, transferee or purchaser shall be entitled to all rights conferred upon the
Developer under the Development Agreement, as long as no condition of default exists and
remains uncured beyond any applicable cure periods in the obligations of the Developer under
the Development Agreement.
15. Successors. This Agreement and each and every covenant, agreement and other
provision hereof shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns.
16. Severability. The enforceability or invalidity of any provision hereof shall not
render any other provision or provisions herein contained unenforceable or invalid.
17. Governing Law. This Agreement is made in and shall be construed in accordance
with the laws of the State of Minnesota.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year first above written.
18444.7
16595109v4
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
[SIGNATURE PAGE TO COLLATERAL ASSIGNMENT OF SECONDARY
DEVELOPER TIF NOTE]
HOUSING AND REDEVELOPMENT
AUTHORITY OF AND FOR THE CITY
OF RICHFIELD, MINNESOTA
By:
Name:
Its: Chair
By:
Name: John Stark
Its: Executive Director
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this ____ day of January, 2019, by
___________________, the Chair of the Housing and Redevelopment Authority of and for the
City of Richfield, Minnesota, a public body corporate and politic organized under the laws of the
State of Minnesota, for and on behalf of said public body.
Notary Public
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this ____ day of January, 2019, by
John Stark, the Executive Director of the Housing and Redevelopment Authority of and for the
City of Richfield, Minnesota, a public body corporate and politic organized under the laws of the
State of Minnesota, for and on behalf of said public body.
Notary Public
[SIGNATURE PAGE TO COLLATERAL ASSIGNMENT OF SECONDARY
DEVELOPER TIF NOTE]
RICHFIELD PROPERTY HOLDINGS,
LLC, a Minnesota limited liability company
By:
Daniel Oberpriller
Its: Manager
STATE OF MINNESOTA )
) ss.
COUNTY OF ___________ )
The foregoing instrument was acknowledged before me this ____ day of January, 2019, by
Daniel Oberpriller, the Manager of Richfield Property Holdings, LLC, a Minnesota limited
liability company, for and on behalf of said limited liability company.
Notary Public
[SIGNATURE PAGE TO COLLATERAL ASSIGNMENT OF SECONDARY
DEVELOPER TIF NOTE]
15TH NB PROPERTY1 LLC, a Minnesota
limited liability company
By:
Daniel Oberpriller
Its: Chief Manager
STATE OF MINNESOTA )
) ss.
COUNTY OF ___________ )
The foregoing instrument was acknowledged before me this ____ day of January, 2019, by
Daniel Oberpriller, the Chief Manager of 15th NB Property1 LLC, a Minnesota limited liability
company, for and on behalf of said limited liability company.
Notary Public
[SIGNATURE PAGE TO COLLATERAL ASSIGNMENT OF SECONDARY
DEVELOPER TIF NOTE]
DRAKE BANK, a Minnesota state banking
corporation
By:
Name: Daniel A. Batten
Its: Vice President
STATE OF MINNESOTA )
) ss.
COUNTY OF RAMSEY )
The foregoing instrument was acknowledged before me this ____ day of January, 2019, by
Daniel A. Batten, the Vice President of Drake Bank, a Minnesota state banking corporation, for
and on behalf of said corporation.
Notary Public
A-1
EXHIBIT A
(Legal Description)
Lot 2, Block 1, Lyndale Gardens 2nd Addition
AGENDA SECTION:RESOLUTIONS
AGENDA ITEM #4.
S TAFF REPORT NO. 7
HOUSING AND RE DEVELOPMENT AUT HORIT Y
MEET ING
1/15/2019
RE P O RT P RE PA RE D B Y: J ulie Urban, Housing Manager
O THE R D E PA RTM E NT RE V IE W: N/A
E X E C UTIV E D IRE C TO R RE V IE W: J ohn S tark, E xecutive D irector
1/8/2019
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consideration of the adoption of a resolution authorizing acceptance of a donation of $100,000 to the
Housing and Redevelopment Authority from Affordable Suburban Housing and approval of program
guidelines for distributing the funds through an Affordable Apartment Improvement Grant Program.
E X E C UT IV E S UM M ARY:
Affordable Suburban Housing (A S H) is a non-profit that supports affordable housing in suburban
communities. A S H recently offered the Housing and Redevelopment Authority (HRA) the opportunity to
request a donation to be used to support affordable housing efforts in the community. Staff submitted an
application proposing to use the funds on an Affordable Apartment I mprovement Grant Program (Program)
and was awarded $100,000 in funding. The HRA must formally accept the funds by resolution.
The purpose of the proposed Program would be to provide financial resources to improve existing, affordable
apartments. The HRA would provide grants targeted at small rental buildings to make improvements to units
currently occupied by tenants, while maintaining affordable rents. Grants of up to $5,000 per unit would be
provided to units occupied by tenants who have lived in the unit for ten or more years. The owner would
provide a 60% match and commit to maintaining the affordability of the unit for at least five years. Only
buildings containing between four and fourteen units and charging rents affordable to households earning no
more than 50% of the area median income (A MI ) would be eligible.
RE C O M M E ND E D AC T I O N:
By motion:
1. Adopt a resolution authorizing acceptance of a donation of $100,000 to the Housing and
Redevelopment Authority from Affordable Suburban Housing for funding of an Affordable
Apartment Improvement Grant Program.
2. Approve guidelines for the Affordable Apartment Improvement Grant Program.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
Bill Schatzlein, the founder of Affordable Suburban Housing, had a long relationship with the
HRA. Bill was one of the original organizers of the Remodeling Fair, developed several affordable
single family homes through the New Home Program, and helped to coordinate the Community
Apartment Program. Bill passed away several years ago, and the A S H Board recently decided to
disband the non-profit and donate the remaining funds to other non-profit organizations who work
on providing affordable housing in suburban communities. A S H contacted HRA staff last Fall
asking that we submit a proposal for use of the funds.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The proposed Program furthers a goal of the City's Comprehensive Plan to encourage the
maintenance and upgrading of aging apartment buildings, while maintaining affordability and
preventing displacement of residents.
C.C R IT IC AL T IMIN G IS S U E S:
This grant was received at the end of 2018 and should be formally accepted as soon as possible.
Funds will be made available to interested owner(s) following approval of the guidelines by the
HRA.
D.F IN AN C IAL IMPAC T:
A S H donated $100,000 to the HRA. The funds will be used to support improvements to affordable
apartments in small apartment buildings while maintaining affordable rents. W ith the funds and the
required match from the owner, 20-30 units may be improved with the funds.
E.L E GAL C ON S ID E R AT ION:
The HRA Attorney reviewed the program guidelines.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
N/A
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
Board members of Affordable Suburban Housing, including Mary Schatzlein and Dan Schatzlein.
AT TAC H ME N T S:
D escription Type
Resolution Resolution L etter
P rogram Guidelines B ackup Material
RESOLUTION NO.
RESOLUTION AUTHORIZING ACCEPTANCE OF A DONATION RECEIVED BY THE
HOUSING AND REDEVELOPMENT AUTHORITY (HRA) AND TO AUTHORIZE THE
HRA TO ADMINISTER THE FUNDS IN ACCORDANCE WITH AFFORDABLE
APARTMENT IMPROVEMENT GRANTS PROGRAM GUIDELINES
WHEREAS, Minnesota Statute 465.03 reads in part as follows:
Any city, county, school district or town may accept a grant or devise of real or
personal property and maintain such property for the benefit of its citizens in
accordance with the terms prescribed by the donor. Nothing herein shall authorize
such acceptance or use for religious or sectarian purposes. Every acceptance shall
be by resolution of the Council adopted by two-thirds majority of its members,
expressing such terms in full, and
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield has received grants and donations as described below:
$100,000 from Affordable Suburban Housing for funding an Affordable Apartment
Improvement Grant Program
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota, as follows:
That the Housing and Redevelopment Authority hereby accepts the grants and
donations as listed above, received in 2018, and authorizes the HRA to administer the
funds in accordance with program guidelines.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield this 15th day of January, 2019.
Chairperson
Secretary
Richfield Housing & Redevelopment Authority
Affordable Apartment Improvement Grants
Program Guidelines
Purpose: The purpose of the Affordable Apartment Improvement Grants (AAIG) Program is to provide financial
resources to improve existing, affordable apartments. The grants are targeted at small rental buildings and
intended to make improvements to units currently occupied by tenants, while maintaining affordable rents.
Program Objectives:
• To maintain and improve Richfield’s rental housing stock.
• To provide improvement resources to small apartment buildings.
• To improve units occupied by existing tenants while maintaining affordability.
• To incentivize owners to invest private resources into apartment buildings.
• To stabilize and improve neighborhoods.
Criteria for Eligibility:
1. Rental apartment buildings that contain between four and fourteen units.
2. Units to be improved must be occupied by tenants who have lived in the unit for ten or more years.
3. The building(s) to be improved must be at least 30 years old.
4. The contract rent of the units to be improved must be affordable at 50% of the Twin Cities Area Median
Income. As of April 1, 2018, the maximum rents to be charged are: Efficiency/Studio = $826; 1BR = $885;
2Br = $1,061; 3BR = $1,226.
5. The grant recipient must be willing to commit to five years of affordability for improved units and raise
rents no more than three percent per year.
6. The Applicant must have a current rental housing license for the Property and be in compliance with
applicable city codes and ordinances.
Terms and Conditions of the Grants:
1. Funds will be awarded in the form of a grant.
2. Minimum grant amount = $5,000. Maximum grant amount per unit = $5,000.
The HRA Executive Director may consider requests for amounts more than the maximum.
3. The grant recipient must provide a 60% match of the grant funds.
4. A grant agreement will detail the terms of the grant.
5. Eligible improvements include but are not limited to: kitchen cabinets, counters, bathroom vanities,
flooring, accessibility improvements, energy-efficiency-related improvements, paint. The plan for
improvements to individual units must be made in consultation with the tenant.
6. HRA funds can only be used for improvements to individual units. Matching funds may be used to improve
individual units, common areas, and/or the building exterior.
7. Funds will be disbursed following completion of the improvement work and submission of invoices and
digital photos of the improvements.
8. Funding is available on a limited basis.
9. Funding an application is at the HRA’s discretion. 1/15/19
AGENDA SECTION:RESOLUTIONS
AGENDA ITEM #5.
S TAFF REPORT NO. 8
HOUSING AND RE DEVELOPMENT AUT HORIT Y
MEET ING
1/15/2019
RE P O RT P RE PA RE D B Y: K ate A itchison/C eleste McD ermott, Housing S pecialists
O THE R D E PA RTM E NT RE V IE W: N/A
E X E C UTIV E D IRE C TO R RE V IE W: J ohn S tark, E xecutive D irector
1/8/2019
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consideration of the adoption of a resolution authorizing the purchase of 6412 Bloomington Avenue S.
for future development as a single-family home.
E X E C UT IV E S UM M ARY:
The owner of 6412 Bloomington Avenue S has expressed an interest in selling her home to the Richfield
Housing and Redevelopment Authority (HRA). The house is 707 square feet and was built in 1928. I t is a
1.25 story home, with a small second-floor space that can only be accessed via a stairway in the home’s only
bathroom. I t has one bedroom plus den, along with one bathroom and an unfinished basement. There is a
detached one-car garage on the property. An independent assessment of the property found that it had "an
awkward floorplan resulting from multiple additions over the years," and that it has excessive code deficiencies
that would cost more than 25% of the property's value to correct. The house was deemed substandard and
meets the requirements for acquisition and demolition under state statute. A sale price of $115,000 was
agreed upon with the seller, with $1,000 paid ahead of closing as earnest money.
This home could be redeveloped under the Richfield Rediscovered Program or the New Home Program. Staff
will seek the HRA's input on future development at the February meeting.
RE C O M M E ND E D AC T I O N:
By motion: Adopt a resolution authorizing the purchase of 6412 Bloomington Avenue S for future
development as a single-family home.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
I n late 2017, the owner of 6412 Bloomington Avenue S contacted Richfield staff inquiring about
the possibility of the City purchasing her home. After a visual inspection by staff, a substandard
inspection of the home was completed, which indicated that it would qualify for purchase and
demolition utilizing the Housing and Redevelopment Fund. The owner was not ready to move
forward at that time.
I n November of 2018, the owner again contacted staff stating she was ready to move forward and
had new housing arranged at a local senior living facility. Staff ordered an appraisal and worked
with the homeowner to find an agreed upon price.
Constructed in 1928, the 1.25 story home has 707 finished square feet with an unfinished
basement. I t has one bedroom plus den, along with one bathroom and a small upper-level crawl
space, accessed via the bathroom.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The Richfield 2040 Comprehensive Plan states as a goal: "Provide a full range of housing choices
that meet residents' needs at every stage of their lives, and ensure a healthy balance of housing
types that meet the needs of a diverse population with diverse needs."
I n efforts to reach that goal, the following policies are promoted:
Encourage the creation of "move up" housing through new construction and home
remodeling.
Promote the development of a balanced housing stock that is available to a range of income
levels.
Through the Richfield Rediscovered Program, the HRA purchases and removes substandard and
functionally obsolete housing and replaces it with newer, higher valued homes with square
footages and design features sought after by current buyers.
Through the New Home Program, the HRA, in conjunction with partner organizations,
purchases and removes or rehabilitates substandard and functionally obsolete housing, replacing
it with newer, subsidized housing reserved for households at, or under, a certain income threshold.
C.C R IT IC AL T IMIN G IS S U E S:
A Purchase Agreement was signed by the property owner contingent upon HRA approval.
Under the terms of the purchase agreement, closing would occur, at the latest, by April 1, 2019.
I f redeveloped under the Richfield Rediscovered Program, the property would be marketed in
early summer to builders and potential buyers for the construction of a new home.
I f redeveloped under the New Home Program, the timeline would likely be more drawn out, and
the land held for a period of time.
D.F IN AN C IAL IMPAC T:
The home was appraised on December 4, 2018. The appraised market value of the property
was $146,000.
The homeowner indicated in a letter dated December 18, 2018, that she would be willing to sell the
property for $120,000.
Staff spoke with the homeowner and a price of $115,000 was agreed upon.
$1,000 will be deducted from the sales price and paid before closing as earnest money.
I f sold through the Richfield Rediscovered Program, staff anticipates a sale price of at least
$50,000. The property would be sold as-is, with the buyer assuming the responsibility for
demolition. The HRA's subsidy in this case would be around $65,000. I n the Richfield
Rediscovered Program, overall subsidies have ranged from $29,000 - $63,000/unit in the past five
years.
I f sold through the New Home Program, the development of the parcel would depend on funding
availability and capacity of partner organizations, like Twin Cities Habitat for Humanity, or the
W est Hennepin Affordable Housing Land Trust (Homes W ithin Reach). I n the past five years, the
subsidies per unit in the New Home Program have ranged from approximately $70,000 to
$100,000 per unit.
E.L E GAL C ON S ID E R AT ION:
The purchase agreement was reviewed by legal counsel.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Do not approve a resolution authorizing the acquisition of 6412 Bloomington Avenue S.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
J eannine Sloan, homeowner of 6412 Bloomington Avenue S.
AT TAC H ME N T S:
D escription Type
Resolution Resolution L etter
P hoto B ackup Material
P urchase A greement C ontract/A greement
HRA RESOLUTION NO. ________
RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY
LOCATED AT 6412 BLOOMINGTON AVENUE
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (“the HRA”) desires to purchase certain real property pursuant to and
in furtherance of the Richfield Rediscovered Program, said property being described as:
6412 Bloomington Avenue
Legal: Lot 3, Block 6, Girard Parkview, Hennepin County, Minnesota
WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to
acquire real property within its area of operation; and
WHEREAS, Housing and Redevelopment Fund money is available for acquisition
purposes.
NOW THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority in and for the City of Richfield:
1. The purchase price for the property is approved at $115,000 plus closing
costs, not to exceed $119,000.
2. The Chairperson and Executive Director are authorized to execute a
Purchase Agreement and to take other actions necessary to purchase
the property for the amount set forth in this Resolution.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota on this 15th day of January, 2019.
_______________________
Chairperson
_______________________
Secretary
AGENDA SECTION:RESOLUTIONS
AGENDA ITEM #6.
S TAFF REPORT NO. 9
HOUSING AND RE DEVELOPMENT AUT HORIT Y
MEET ING
1/15/2019
RE P O RT P RE PA RE D B Y: J ohn S tark, HRA E xecutive D irector
O THE R D E PA RTM E NT RE V IE W: N/A
E X E C UTIV E D IRE C TO R RE V IE W: J ohn S tark, E xecutive D irector
1/7/2019
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consideration of the adoption of a resolution amending the Bylaws of the Richfield Housing and
Redevelopment Authority to reflect the composition of membership as authorized by the Mayor and
City Council of the City of Richfield.
E X E C UT IV E S UM M ARY:
On December 13, 2011, the Richfield Mayor and City Council adopted a resolution amending the
composition of the board of Commissioners of the Richfield Housing and Redevelopment Authority (HRA) to
require the appointment of two sitting members of the City Council as HRA Commissioners. The HRA
Bylaws, however, were never amended to reflect this action nor other details related to the composition of the
HRA board. HRA staff and legal counsel are recommending that the HRA amend it's Bylaws at this time to
reflect the language pertaining to the composition of the HRA as approved by the City Council. The
recommended amendment mirrors the wording contained in the 2011 City Council resolution.
RE C O M M E ND E D AC T I O N:
By motion: Adopt a resolution amending the Bylaws of the Richfield Housing and Redevelopment
Authority to reflect the composition of membership as authorized by the Mayor and City Council of the
City of Richfield.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
Although not refelected in its current Bylaws, the HRA's composition has included two City
Council members for over seven years (since J anuary 2012).
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
State Statute (Chapter 469) allows a City Council to create a Housing and Redevelopment
Authority and to determine the composition of it's membership.
C.C R IT IC AL T IMIN G IS S U E S:
The terms of (former) Commissioners Pat Elliott and Michael Howard (as ex-officio Commission
members) expired on December 31, 2018 to coincide with the termination of the office of City
Council members that they had held.
The City Council is scheduled to make HRA Commission appointments, including appointments of
two ex-officio City Council members, on J anuary 8, 2018.
D.F IN AN C IAL IMPAC T:
N/A
E.L E GAL C ON S ID E R AT ION:
HRA Legal Counsel J ulie Eddington recommends that the HRA adopt this Bylaw revision to reflect
the City Council's appointment requirements.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Adopt the resolution (as recommended), but recommend a different HRA Commission composition to
the Richfield City Council for their future consideration.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
None
AT TAC H ME N T S:
D escription Type
Resolution Resolution L etter
C ity C ouncil Resolution No. 10586 B ackup Material
HRA RESOLUTION NO.
RESOLUTION AMENDING THE BYLAWS OF THE HOUSING AND
REDEVELOPMENT AUTHORITY OF THE CITY OF RICHFIELD, MINNESOTA
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota (Authority) has established Bylaws; and
WHEREAS, from time to time it is appropriate for the Bylaws to be amended; and
WHEREAS, in accordance with Minnesota State Statutes, the Mayor and the City
Council of the City of Richfield is authorized to create a Housing and Redevelopment Authority
(Authority) and to determine the composition thereof; and
WHEREAS, the bylaws of the Authority do not currently reflect or acknowledge the
Composition of Membership as determined by the Mayor and City Council.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority
in and for the City of Richfield, Minnesota that Article I of its bylaws be augmented to include:
Section 5. Composition of Membership. The Composition of Membership of the
Authority shall be determined by the Mayor and City Council of the City of Richfield (City
Council). Until and unless further amended by the Mayor and City Council, this
Composition shall be as follows:
a. In making appointments to the HRA commission, the Mayor and City Council shall
designate two positions as ex-officio with voting rights, to be filled by two members of
the City Council, which may include the Mayor. The term of office of an ex-officio
commission member shall be set to coincide with the member's term as mayor or
council member.
b. The remaining three members of the HRA commission shall be residents of the City
of Richfield and appointed in the manner required by law. The citizen members shall
serve five-year terms, which shall be staggered.
c. No citizen member of the HRA commission shall be appointed to more than two
consecutive terms on the commission.
d. No citizen member, once appointed, may serve on any city advisory commission,
except the Charter Commission, during the term of the HRA appointment.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 15th day of January 2019.
_________________________________
Chair
ATTEST:
__________________________
Secretary
BYLAWS OF THE
HOUSING AND REDEVELOPMENT AUTHORITY
OF RICHFIELD, MINNESOTA
ARTICLE I – THE AUTHORITY
Section 1. Name of Authority. The name of the Authority shall be the “Housing
and Redevelopment Authority of Richfield, Minnesota”.
Section 2. Seal of Authority. The seal of the Authority shall be in the form of a
circle and shall bear the name of the Authority.
Section 3. Office of Authority. The offices of the Authority shall be at City Hall in
the City of Richfield, Minnesota, but the Authority may hold its meetings at such other
place or places as it may designate by resolution.
Section 4. Official Newspaper. The official newspaper shall be the official
newspaper designated by the City as its official newspaper each year.
Section 5. Composition of Membership. The Composition of Membership of the
Authority shall be determined by the Mayor and City Council of the City of Richfield (City
Council). Until and unless further amended by the Mayor and City Council, this
Composition shall be as follows:
a. In making appointments to the HRA commission, the Mayor and City Council shall
designate two positions as ex-officio with voting rights, to be filled by two members of
the City Council, which may include the Mayor. The term of office of an ex-officio
commission member shall be set to coincide with the member's term as mayor or
council member.
b. The remaining three members of the HRA commission shall be residents of the City
of Richfield and appointed in the manner required by law. The citizen members shall
serve five-year terms, which shall be staggered.
c. No citizen member of the HRA commission shall be appointed to more than two
consecutive terms on the commission.
d. No citizen member, once appointed, may serve on any city advisory commission,
except the Charter Commission, during the term of the HRA appointment.
ARTICLE II – OFFICERS
Section 1. Officers. The officers of the Authority shall be a Chairperson, a Vice-
Chairperson, and a Secretary.
Section 2. Chairperson. The Chairperson shall preside at all meetings of the
Authority. Except as otherwise authorized by resolution of the Authority, the
Chairperson shall sign all contracts, deeds, resolutions and other instruments made by
the Authority. At each meeting the Chairperson shall submit such recommendations
and information he or she may consider proper concerning the business, affairs and
policies of the Authority.
Section 3. Vice-Chairperson. The Vice-Chairperson shall perform the duties of
the Chairperson in the absence or incapacity of the Chairperson; and in case of the
resignation or death of the Chairperson, the Vice-Chairperson shall perform such duties
as are imposed on the Chairperson until such time as the Authority shall select a new
Chairperson.
Section 4. Secretary. The Secretary shall perform the duties of a Secretary for
the Authority. The Secretary shall perform the duties as the Chairperson in cases
where both the Chairperson and Vice-Chairperson are absent or incapacitated.
Section 5. Executive Director. The Authority shall employ an Executive Director
who shall have general supervision over the administration of its business and affairs,
subject to the direction of the Authority. He or she shall be charged with the
management of the housing and redevelopment projects of the Authority. Regardless
of who is appointed, the City Manager of the City of Richfield shall have ultimate
authority in recommending an annual levy and budget. The Executive Director may
designate an acting Executive Director during periods when he or she is absent or
incapacitated.
Section 6. Other Administrative Officers. The Authority may designate an
assistant to the Secretary who shall keep the records of the Authority, shall act as
recorder of the meetings of the Authority and record all votes, and shall keep a record of
the proceedings of the Authority in a journal of proceedings to be kept for such purpose,
and shall perform all duties incidental to his office. He or she shall keep in safe custody
the seal of the Authority and shall have power to affix such seal to all contracts and
instruments authorized to be executed by the Authority.
The Authority may designate a Treasurer who shall have the care and custody of
all funds of the Authority and shall deposit the same in the name of the Authority in such
bank or banks as the Authority may select. The Executive Director and Treasurer shall
sign all orders and checks for the payment of money and shall pay out and disburse
such moneys under the direction of the Authority. Except as otherwise authorized by
resolution of the Authority, all such orders and checks shall also be countersigned by
the Chairperson. The Treasurer shall keep regular books of accounts showing receipts
and expenditures and shall render to the Authority, at each regular meeting (or more
often when requested), an account of his transactions and also of the financial condition
of the Authority. He or she shall give such bond for the faithful performance of his
duties as the Authority may determine
ARTICLE III – MEETINGS
Section 1. Annual Meeting. The annual meeting of the Authority shall be held on
the third Tuesday in January at 7:00 p.m. at the regular meeting place of the Authority.
Section 2. Regular Meetings. Monthly meetings shall be held without notice at
the regular meeting place of the Authority on the third Monday of each month, at 7:00
p.m. unless the same shall be a legal holiday, in which event said meeting shall be held
on the next succeeding secular day.
Section 3. Special Meetings. Special meetings of the Authority may be called by
the Chairperson, or two members of the Authority for the purpose of transacting any
business designated in the call. The call for a special meeting may be delivered at any
time prior to the time of the proposed meeting to each member of the Authority or may
be mailed to the business or home address of each member of the Authority at least two
(2) days prior to the date of such special meeting. At such special meeting no business
shall be considered other than as designated in the call, but if all of the members of the
Authority are present at a special meeting, any and all business may be transacted at
such special meeting.
Section 4. Quorum. The powers of the Authority shall be vested in the
Commissioners thereof in office from time to time. Three Commissioners shall
constitute a quorum for the purpose of conducting its business and exercising its
powers and for all other purposes, but a smaller number may adjourn from time to time
until a quorum is obtained. When a quorum is in attendance, action may be taken by
the Authority upon a vote of a majority of the Commissioners present.
Section 5. Order of Business. At the regular meetings of the Authority the
following shall be the order of business:
1. Roll Call.
2. Approval of the Minutes of the Previous Meeting.
3. Reports of the Executive Director.
4. Unfinished Business.
5. New Business.
6. Adjournment.
All resolutions shall be in writing and shall be copied in the journal of the
proceedings of the Authority.
Section 6. Manner of Voting. The voting on all questions coming before the
Authority shall be by roll call and the yeas and nays shall be entered upon the minutes
of such meeting.
Section 7. Combining Administrative Offices: Compensation. The compensation
of the Executive Director and other personnel of the Authority shall be determined by
the Authority. Any two or more administrative offices may be combined.
Section 8. Additional Duties. The officers of the Authority shall perform such
other duties and functions as may from time to time be required by the Authority or the
Bylaws or rules and regulations of the Authority.
Section 9. Election of Appointment. The first Chairperson shall, pursuant to this
appointment, serve in the capacity of Chairperson until the expiration of his term of
office as Commissioner. The Vice-Chairperson, Secretary and, except in the case of
the First Chairperson, the Chairperson shall be elected at the annual meeting of the
Authority from among the Commissioners of the Authority, and shall hold office for one
year or until their successors are elected and qualified.
The Executive Director shall be appointed by the Authority. Any person
appointed to fill the office of Executive Director or any vacancy therein, shall have such
term as the Authority fixes, but no Commissioner of the Authority shall be eligible for this
office.
Section 10. Vacancies. Should the office of Chairperson, Vice-Chairperson or
Secretary become vacant, the Authority shall elect a successor from its membership at
the next regular meeting, and such election shall be for the unexpired term of said
office.
Section 11. Additional Personnel. The Authority may from time to time employ
or contract for such personnel as it deems necessary to exercise its powers, duties and
functions as prescribed by the Municipal Housing and Redevelopment Law of
Minnesota applicable thereto. Such personnel may be employees of the Authority,
employees of other governmental organizations, or independent contractors. The
selection and compensation of such personnel shall be determined by the Authority
subject to the laws of the State of Minnesota.
ARTICLE IV – AMENDMENTS
Section 1. Amendments to Bylaws. The Bylaws of the Authority shall be
amended only with the approval of at least three of the members of the Authority at a
regular or a special meeting.
Amended 04/21/80
Amended 01/21/86
Amended 12/15/86
Amended 08/18/03
Amended 02/18/14
Amended 09/17/18
Amended 01/15/19
RESOLUTION NO. 10586
RESOLUTION REGARDING APPOINTMENTS TO THE HOUSING AND
REDEVELOPMENT AUTHORITY BOARD OF COMMISSIONERS;
ESTABLISHING COMPOSITION OF THE BOARD AND TERM LIMITS ON
NON-ELECTED MEMBERS
WHEREAS, Housing and Redevelopment Authority (HRA) was
established by the City of Richfield in 1974 to support the long-term vitality of
Richfield's residential and commercial property; and
WHEREAS, the HRA consists of five board members who are nominated
by the Mayor and approved by the City Council, serving staggered terms; and
WHEREAS, the HRA plays a significant role in the redevelopment of the
City and in the achievement of the City's goals for housing and commercial
development; and
WHEREAS, the City Council has determined that the public interest is
served by requiring that two HRA representatives be elected Council members;
and
WHEREAS, the City Council has determined that the use of term limits will
provide an opportunity for a greater number of individuals to serve as HRA
members.
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of
Richfield, Minnesota as follows:
1.In making appointments to the HRA commission, the Mayor and
City Council shall designate two positions as ex-officio with voting rights, to be
filled by two members of the City Council, which may include the Mayor. The
term of office of an ex-officio commission member shall be set to coincide with
the member's term as mayor or council member.
2. The remaining three members of the HRA commission shall be
residents of the City of Richfield and appointed in the manner required by law.
The citizen members shall serve five-year terms, which shall be staggered.
3.No citizen member of the HRA commission shall be appointed to
more than two consecutive terms on the commission.
4.No citizen member, once appointed, may serve on any city advisory
commission, except the Charter Commission, during the term of the HRA
appointment.
5. This resolution is effective upon adoption and shall be applied to
each appointment made after the effective date.
Adopted by the City Council of the City of _ afield, Minnesota u is 13th
day of December 2011.
I 14114. I irir/.
De:bie Goette; ayor
ATT ST:
d-41-A
Nancy Gibb ity Clerk
AGENDA SECTION:OTHER BUSINESS
AGENDA ITEM #7.
S TAFF REPORT NO. 10
HOUSING AND RE DEVELOPMENT AUT HORIT Y
MEET ING
1/15/2019
RE P O RT P RE PA RE D B Y: J ohn S tark, E xecutive D irector
O THE R D E PA RTM E NT RE V IE W: K atie Rodriguez, C ity Manager
E X E C UTIV E D IRE C TO R RE V IE W: J ohn S tark, E xecutive D irector
1/10/2019
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consideration of the approval of the use of up to $180,000 from the Housing and Redevelopment
Authority's Capital Improvements Fund to advance payments for the Housing Choice Voucher
Program for the month of March (if necessary).
E X E C UT IV E S UM M ARY:
The Housing and Redevelopment Authority (HRA) is responsible for local administration of the U.S.
Department of Housing and Urban Development (HUD) Housing Choice Voucher Program (Program). These
housing vouchers provide rent subsidies to low-income households. I n Richfield, we serve approximately 270
households through this Program. The amount of assistance that individual households receive vary from
under $100 a month to over $1,000 a month. Collectively, the Richfield HRA provides approximately $160,000
in housing voucher payments each month. These funds are advanced to us by HUD on a monthly basis. The
funds themselves are provided directly to rental property owners to make up the difference between the actual
rent and what the tenant can afford to pay.
HRA staff has learned from multiple sources (but not from HUD) that, if the federal government shutdown
were to continue beyond February, there would not be funding available to advance the HRA funds for our
payment of housing vouchers. This would result in a financial burden on the rental property owners that chose
to participate in the Program and it could give property owners justification to quit participating in the Program
and/or to begin eviction proceedings on tenants who are unable to pay their full month's rent.
Based on these concerns, HRA staff is recommending that the HRA use up to $180,000 from its Capital
I mprovement Fund to advance payments on housing vouchers for the month of March, if necessitated by a
continued federal government shutdown. I n past shutdowns, the federal government has always made
retroactive payments upon the conclusion of the shutdown and there hasn't been any reporting in the national
news media to cause concern that this will not continue to be the case. I f the shutdown is not resolved prior to
the February 19 HRA meeting, staff will plan to bring continuing funding actions to the HRA for further
consideration.
RE C O M M E ND E D AC T I O N:
By motion: Approve the use of up to $180,000 from the Housing and Redevelopment Authority's
Capital Improvements Fund to advance payments for the Housing Choice Voucher Program for the
month of March (if necessary).
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
The HRA has historically been charged with local administration of the U.S. Department of
Housing and Urban Development (HUD) Housing Choice Voucher Program.
The HRA typically gets payment from the federal government to make housing voucher payments.
The current federal government shutdown is putting the ability to make these payments in
jeopardy.
Historically, the federal government makes retroactive payments of funding upon the conclusion of
a shutdown.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The potential impacts of not being able to honor payments of housing vouchers due to the federal
government shutdown are a financial burden on the rental property owners that chose to
participate in the Housing Choice Voucher Program (Program) and it could give property owners
justification to quit participating in the Program and/or to begin eviction proceedings on tenants
who are unable to pay their full month's rent.
C.C R IT IC AL T IMIN G IS S U E S:
The reports that staff have received indicate that the federal government has sufficient funds
available to advance Housing Choice Voucher payments for the month of February, but that
further Housing Choice Voucher payments cannot be made without a cessation of the current
federal government shutdown.
D.F IN AN C IAL IMPAC T:
The Capital I mprovement Fund has a current investment balance of $1,157,000. As a matter of
policy (but not governed by any statute or ordinance) the HRA keeps $1 million invested from this
fund and only uses fund earning on project costs.
Historically, the federal government makes retroactive payments of funding upon the conclusion of
a shutdown.
E.L E GAL C ON S ID E R AT ION:
HRA legal counsel was made aware of this recommendation and has not identified any issues of
legal concern.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Defer this consideration until the February meeting (which may result in a great deal of anxiety for
housing voucher holders and landlords).
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
None