04-15-2019 Complete AgendaS P E C IAL C O N C U R R E N T C IT Y C O U N C IL AN D H O U S IN G AN D R E D E V E LO P ME N T
AU TH O R IT Y W O R K S E S S IO N
R IC H F IE L D MU N IC IPAL C EN TER, B AR T H O L O ME W R O O M
AP R IL 15, 2019
5:45 P M
C all to order
1.D iscuss E merson L ane housing proposals
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.
CITY OF RICHFIELD, MINNESOTA
Office of City Manager
April 11, 2019
Council Memorandum No. 20 HRA Memorandum No. 3
The Honorable Mayor Housing and Redevelopment
and Authority Commissioners
Members of the City Council City of Richfield
Subject: Development of Emerson Lane Site
Council Members and Commissioners:
On November 13, 2018, staff presented an overview of the HRA-owned site located at
6812 Emerson Lane and the proposal for five single-family homes submitted by Endres
Custom Homes. No specific determination or direction was chosen at the work session;
however, the builder continues to be interested in developing the property . At the
upcoming HRA and Council work session on April 15, staff will revisit the site and the
proposed development.
Site Background
The 1.3 acre property is located between Interstate 35W and Emerson Avenue, just
north of Wood Lake Nature Center (Attachment A). The property was purchased by the
HRA in 2005 and is zoned and guided for single family residential .
The property was purchased in 2005 for the purpose of building new single-family
homes under the Richfield Rediscovered (RR) program. When staff began marketing
the property to builders, the housing market had begun its downturn, and interest was
scarce.
Over the past few years, the HRA has fielded the following inquiries for the property:
Summer 2014 – A neighbor expressed interest in subdividing the property and
building three single family homes. No formal application was submitted.
Spring 2017– An individual proposed building three slab-on-grade homes. No
formal application was submitted.
Spring 2018 – A neighbor expressed an interest in building one single family
home. No formal application was submitted.
Spring 2018 – A neighbor expressed an interest in purchasing the lot from the
HRA for $10,000.
Spring 2018 – Dustin Endres of Endres Custom Homes made inquiries about
the lot and began researching the City requirements to build five homes.
Fall 2018 – Neighbors sent a letter to the HRA expressing their opposition to
housing development and desire for it to be recognized as part of Wood Lake
Nature Center.
Staff have also discussed the site with the Minnesota Department of Transportation
(MnDOT), Public Works, and Recreation Services; however, none have expressed a
need or interest in the property . In the case of Recreation Services, the only possibility
for the site would be either a dog park or an archery range; however, costs of
development are prohibitive.
Proposed Housing Development
The current proposal by Endres Custom Homes is for five single-family homes
(Attachment B):
The homes would be based on the same split-level model with varying rooflines,
siding patterns and exterior colors. Each home would have four bedrooms, three
bathrooms, and an attached two-car garage. The estimated sale price would be
$345,000.
The homes would receive sound-attenuation upgrades to mitigate the noise of
nearby Interstate Highway 35W.
Two buyers have expressed interest in buying homes here, and the builder feels
confident that other buyers would respond once listed on the M ultiple Listing
Service (MLS).
A public road with turnaround would be constructed to provide access for
emergency vehicles.
The cost to prepare the property for development of five homes is estimated at
$300,000. This includes the cost of site preparation, road construction and utilit y
installation. These costs are beyond the normal costs undertaken at other RR lots
because utility mains would need to be constructed, and the public road would need to
be extended. The HRA would likely not receive any sale proceeds under this scenario
because they would be used to offset the high cost to develop the property.
Alternative Housing Scenarios
At the work session on November 13 policymakers considered the development of
fewer than five homes on the property . The feasibility of those alternatives is as follows:
The construction of three or four homes would also require a public road and
utility mains to be constructed, costing $300,000. With fewer homes to absorb
these costs, significant up-front investment from the HRA would be required for a
viable development. An estimated $60,000 - $120,000 in additional cash would
be needed to make three to four homes feasible. Staff does not view this as a
wise use of scarce HRA resources so is not recommending this scenario.
Reducing the development to two homes on the site allows for the construction
of a private, shared driveway instead of a public road. This lowers development
costs but also adds the additional cost and burden of installing a nd maintaining
shared utilities and the driveway. A small amount of sale proceeds may be
realized, depending on the final cost of the shared utilities.
The construction of one home would include the installation of a private driveway
and single-user utility lines, both of which would be significantly longer than a
typical development and therefore more costly . Sales proceeds and an additional
$10,000 would likely be required to cover development costs.
Since 2005, the HRA has spent over $335,000 for the acquisition, demolition and
maintenance of this property. Under no scenario does the HRA recoup these acquisition
and holding costs, except through property taxes over the long-term. (Attachment C)
Policies
The following policies provide guidance in considering the development of the property:
1. The main objectives of the Richfield Rediscovered Program include:
a. To remove substandard, functionally obsolete housing on scattered sites
throughout the City and replace with new, higher-valued housing;
b. To eliminate the blighting influence of substandard housing, thus
improving residential neighborhoods;
c. To alleviate the shortage of housing choices for families; and
d. To facilitate the construction of larger three - to four-bedroom, owner-
occupied homes designed for families.
There is high demand for new single family homes in Richfield, with nearly 200
individuals on the notification list for the program.
2. The Comprehensive Plan is the policy document that describes the
community’s vision for the future of Richfield. The Housing Goals and supporting
policies included in the document support the goals of the Richfield Rediscovered
program: the desire to provide a full range of housing choices and the creation of
“move up” housing.
3. The Inclusionary Housing Policy states that “With regards to “scattered-site
single family housing development,” at least 20% of the units newly constructed
or rehabilitated and converted to long-term affordability in any three-year period
must meet the proscribed affordability requirements.”
a. With the addition of five market-rate homes built at 6812 Emerson Lane,
the percentage of affordable new homes constructed would be 24% for
the 2018-2020 time period.
Land Use/Zoning Considerations
The property at 6812 Emerson Lane is designated for Low Density Residential in the
Comprehensive Plan and is zoned for single-family residential housing. In this zoning
district, single-family dwelling units are permitted uses, up to seven units per acre.
If the development of five homes on the property proceeds for approvals, the plat of the
property would come before the Richfield City Council for approval. Some of the
proposed lots may be non-conforming in width (i.e., less than 50 feet).
Neighborhood Input
The neighbors have expressed their concerns over the proposal for five homes. The
attached letter to the HRA commissioners, dated October 2, 2018, states their
opposition to any development of the property (Attachment D). A number of neighbors
also attended the November 13, 2018, work session and voiced their concerns
regarding the impact of development on property values, increased traffic on Emerson
Avenue, house height and design, and impact of added households on a property that
has been vacant si nce 2005.
Postcard notifications for this work session were mailed to the neighborhood on April 3.
If a housing development proceeds for the site, an open house will be scheduled for the
neighborhood to get more information about the builder, house plans and construction
schedule.
Timing
Mr. Endres, of Endres Custom Homes, initially contacted staff in the spring of 2018. He
has buyers interested in building new homes in Richfield, who are awaiting a decision
about this property for future construction.
Emerson Lane is scheduled for mill and overlay to be completed in 2020, so any utility
improvements necessary for development should be completed before hand to avoid
damaging the newly refurbished road.
Questions to Consider
The proposal raises the following questions for policymakers to consider:
1. Is housing the appropriate use for this HRA-owned site?
2. If housing is appropriate, what number of homes do you support for the property?
Next Steps
If policymakers support development of five housing units on the property, staff
will encourage Endres Custom Homes to submit a formal proposal and request
for development of the property. A development agreement would be brought to
the HRA, and a plat application to the Council.
If support is for one or two units, staff will encourage Endres to submit an
application for the lot(s). If he is not interested, the lots will be marketed for sale
through the Richfield Rediscovered Program.
If policymakers determine that housing is not the appropriate use for the site,
consideration of the appropriate use will be referred to the Planning Commission.
Respectfully submitted,
Katie Rodriguez
City Manager
KR:ka
Email: Department Directors
ATTACHMENT A
6812 Emerson Lane, Aerial Photo of the site
ATTACHMENT B
Site plan and house design for proposal submitted for 5 homes on Emerson Lane
Proposed House Plan and Photo of Constructed Homes submitted by Endres Custom
Homes.
Perspective
from West
Perspective
from East
Same house
design/plan, built in
2018 on 16th Avenue
double-lot
ATTACHMENT C
Summary of Development Costs - 6812 Emerson Lane
1 Home 2 Homes 3 Homes 4 Homes 5 Homes
Development Costs* $ (70,700) $ (95,000) $ (300,000) $ (300,000) $ (300,000)
Lot Value
Estimated at $60k/lot $ 60,000 $ 120,000 $ 180,000 $ 240,000 $ 300,000
TOTAL HRA (Cost)/Gain $ (10,700) $ 25,000 $ (120,000) $ (60,000) $ -
CITY TAX GAIN
Estimated at $2,050/house in
annual tax to City and HRA $ 2,050 $ 4,100 $ 6,150 $ 8,200 $ 10,250
RETURN ON
INVESTMENT (YEARS) 169.2 75.9 74.2 48.3 32.8
*Acquisition and holding costs of $335,000 not included.
ATTACHMENT D
Letter sent to HRA Commissioners from Emerson Lane neighbors, dated October 2,
2018
R 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
APR IL 15, 2019
7:00 P M
C all to Order
Approval of the Minutes
A pproval of the minutes of the: (1) Regular Housing and Redevelopment A uthority meeting of J anuary 15, 2019; (2)
S pecial concurrent C ity C ouncil, Housing and Redevelopment A uthority, and P lanning C ommission work session of
F ebruary 11, 2019; (3) Regular Housing and Redevelopment A uthority meeting of F ebruary 19, 2019; and (4) S pecial
concurrent C ity C ouncil, Housing and Redevelopment A uthority, and P lanning C ommission meeting of March 26, 2019.
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 onsider the approval of a proposed adjustment of payment standard for the S ection 8 Rent A ssistance
voucher program.
S taff Report No. 14
B .C onsider the approval of a Right of E ntry A greement with Twin C ities Habitat for Humanity for 6310 Irving
Avenue.
S taff Report No. 15
3.C onsideration of items, if any, removed from C onsent C alendar
P U B LIC H E AR IN G S
4.C ontinue a public hearing to consider the sale of 6310 Irving Avenue to Twin C ities Habitat for Humanity for the
construction of a single-family home.
S taff Report No. 16
O T H E R B U S IN E S S
5.C onsider revisions to the Inclusionary Housing P olicy with regards to Housing and Redevelopment scattered-site
programs.
S taff Report No. 17
H R A D IS C U S S IO N ITE MS
6.HRA D iscussion Items
E X E C U T IV E D IR E C TO R R E P O R T
7.E xecutive D irector's Report
C LAIMS AN D PAYR O L LS
8.C laims and P ayrolls
9.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.
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
January 15, 2019
CALL TO ORDER
The meeting was called to order by Commissioner Mary Supple at 7:00 p.m. in the Council
Chambers.
HRA Members Mary Supple, Chair; Pat Elliott; Maria Regan Gonzalez; Sue Sandahl; and
Erin Vrieze Daniels.
Staff Present: John Stark, Executive Director, Julie Urban, Housing Manager, Elizabeth
VanHoose, City Clerk; Kate Aitchison, Housing Specialist.
OATH OF OFFICE OF RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY
COMMISSIONER, PAT ELLIOTT
OATH OF OFFICE OF RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY
COMMISSIONER, MARY S UPPLE
OATH OF OFFICE OF RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY
COMMISSIONER, MARIA REGAN GONZALEZ
City Clerk VanHoose administered the oath of office to Commissioners Elliott, Supple, and
Regan Gonzalez.
CONSIDERATION OF THE ELECTION OF OFFICERS AND DESIGNATION OF ASSISTANT
TO THE SECRETARY FOR THE RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY
FOR 2019. (S.R. NO. 1)
Chair Supple opened nominations.
M/Sandahl, S/Elliott to elect Mary Supple to serve as Chairperson.
Motion carried 5-0.
M/Supple, S/Vrieze Daniels to elect Pat Elliott to serve as Vice Chairperson.
Motion carried 5-0.
M/Supple, S/Elliott to elect Erin Vrieze Daniels to serve as Secretary.
Motion carried 5-0.
HRA Meeting Minutes -2- January 15, 2019
M/Supple, S/Vrieze Daniels to elect Kate Aitchison to serve as assistant to the Secretary.
Motion carried 5-0.
APPROVAL OF THE MINUTES OF THE: (1) SPECIAL CONCURRE NT CITY COUNCIL,
HOUSING AND REDEVELOPMENT AUTHORITY, AND PLANNING COMMISSION WORK
SESSION OF NOVEMBER 13, 2018; AND (2) REGULAR HOUSING AND REDEVELOPMENT
AUTHORITY MEETING OF NOVEMBER 19, 2018.
M/Elliott, S/Sandahl to approve the minutes of the: (1) Special concurrent City Council,
Housing and Redevelopment Authority, and Planning Commission work session of November 13,
2018; and (2) Regular Housing and Redevelopment Authority meeting of November 19, 2018.
Motion carried 5-0.
Item #1
APPROVAL OF THE AGENDA
M/Vrieze Daniels, S/Sandahl to approve the agenda.
Motion carried 5-0.
Item #2
CONSENT CALENDAR
Executive Director Stark presented the Consent Calendar:
A. Consideration of the adoption of resolutions designating official depositories for the
Housing and Redevelopment Authority for 2019, including the approval of collateral.
(S.R. No. 2)
RESOLUTION NO. 1318
RESOLUTION DESIGNATING U.S. BANK A DEPOSITORY OF
FUNDS OF THE HRA OF RICHFIELD FOR THE YEAR 2019
RESOLUTION NO. 1319
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
RESOLUTION NO. 1320
RESOLUTION DESIGNATING CERTAIN FINANCIAL INSTITUTIONS
AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND
REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2019
B. Consideration of the approval of an amended Contract with the Center for Energy and
Environment to provide loan and remode ling advising services to Richfield homeowners
for 2019. (S.R. No. 3)
HRA Meeting Minutes -3- January 15, 2019
C. Consideration of the adoption of a resolution approving the Assignment and Assumption
of Contract between NHH Companies, LLC, CPII Development, LLC, and the Housing
and Redevelopment Authority. (S.R. No. 4)
RESOLUTION NO. 1321
RESOLUTION APPROVING ASSIGNMENT OF CONTRACT FOR
PRIVATE DEVELOPMENT
D. Consideration of the adoption of a resolution approving execution of a Right of Entry
Agreement with Cedar Point Investments, LLC, for the Ceda r Point II properties owned
by the Housing and Redevelopment Authority. (S.R. No. 5)
RESOLUTION NO. 1322
RESOLUTION APPROVING THE EXECUTION AND DELIVERY OF A
RIGHT OF ENTRY AGREEMENT WITH CEDAR POINT
INVESTMENTS LLC
E. 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.
(S.R. No. 6)
RESOLUTION NO. 1323
RESOLUTION APPROVING COLLATERAL ASSIGNMENT OF
SECONDARY DEVELOPER TIF NOTE
M/Regan Gonzalez, S/Elliott to approve the consent calendar.
Motion carried 5-0.
Item #3
CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM CONSENT CALENDAR
None.
Item #4
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.
(S.R. NO. 7)
Housing Manager Julie Urban presented Staff Report 7, and provided some background
information regarding the organization, Affordable Suburban Housing (ASH), offering the funding.
Commissioner Elliott asked about the amount of funding per unit and how the grant money
and match funds will be used. Housing Manager Urban responded. Commissioner Elliott asked
about the number of buildings that may be eligible for use of these funds and how the program will
be marketed to landlords. Housing Manager Urban estimated that there are approximately 50
buildings in the community that may be eligible and that information will be sent out to eligible
HRA Meeting Minutes -4- January 15, 2019
landlords with eligible tenants. Commissioner Elliott stated his sup port for this program and
suggested this may be something the HRA may consider continuing in the future.
Commissioner Regan Gonzalez expressed her support for the prog ram and gratitude for
the grant from ASH.
M/Sandahl, S/Vrieze Daniels to 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 and approve guidelines for the
Affordable Apartment Improvement Grant Program, with guidelines amended to reduce the
requirement for eligibility from ten years to five years tenancy, with priority given to renters who
have lived in their unit for ten years or more .
RESOLUTION NO. 1324
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
Motion carried 5-0.
Item #5
CONSIDERATION OF THE ADOPTION OF A RESOLUTION AUTHORIZING THE
PURCHASE OF 6412 BLOOMINGTON AVENUE S. FOR FUTURE DEVELOPMENT
AS A SINGLE-FAMILY HOME. (S.R. NO. 8)
Housing Specialist Kate Aitchison presented Staff Report 8.
Commissioner Elliott stated that the home’s exterior looks well-preserved, despite the age
of the structure.
Commissioner Vrieze Daniels stated that she is typically conflicted about these situations
and removing these lower-cost houses. She appreciates the answers she has received from staff
regarding this situation , and she stated that she looks forward to the conversation next month.
M/Regan Gonzalez, S/Sandahl to adopt a resolution authorizing the purchase of 6412
Bloomington Avenue S for future development as a single -family home.
RESOLUTION NO. 1325
RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY
LOCATED AT 6412 BLOOMINGTON AVENUE
Commissioner Sandahl reflected that this is a very small home and that it will be a good to
see it redeveloped.
Motion carried 5-0.
HRA Meeting Minutes -5- January 15, 2019
Item #6
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. (S.R. NO. 9)
Executive Director John Stark presented Staff Report 9.
In addition to the changes outlined in the staff report, it is also recommended that the
language around the voting of the HRA members in Section 6 Manner of Voting shall be amended
from:
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, to now read:
The voting on all questions coming before the Authority shall be by roll call made
verbally and the yeas and nays shall be entered upon the minutes of such meeting.
M/Vrieze Daniels, S/Sandahl to 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, with the amended Section 6 Manner of Voting
to state: “The voting on all questions coming before the Authority shall be made verbally and the
yeas and nays shall be entered upon the minutes of such meeting”.
RESOLUTION NO. 1326
RESOLUTION AMENDING THE BYLAWS OF THE HOUSING AND
REDEVELOPMENT AUTHORITY OF THE CITY OF RICHFIELD,
MINNESOTA
Motion carried 5-0.
Item #7
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). (S.R. NO.
10)
Executive Director John Stark presented Staff Report 10.
Commissioner Vrieze Daniels expressed her support for this action. Chair Supple
expressed her agreement for the good of the tenants.
Commissioner Regan Gonzalez asked about how voucher-holders will receive
communications. Housing Manager Urban stated that letters will go out to vo ucher-holders and
landlords in the next few days to provide an update.
M/Sandahl, S/Regan Gonzalez to 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.
Motion carried 5-0.
HRA Meeting Minutes -6- January 15, 2019
Item #8 HRA DISCUSSION ITEMS
None.
Item #9 EXECUTIVE DIRECTOR REPORT
Executive Director Stark updated the HRA on the acquisition of the property at 6501 Penn
Avenue and the next steps in the redevelopment process.
Executive Director Stark also shared the Local Government Innovation Award for the work
towards preserving apartment communities in Richfield. This includes the Apartment Remodeling
Program, the Tenant Protection Ordinance, and other policy and programmatic endeavors.
Item #10 CLAIMS AND PAYROLLS
M/Sandahl, S/Vrieze Daniels that the following claims and payroll be approved:
U.S. BANK 12/17/18
Section 8 Checks: 130288 - 130366 $161,403.42
HRA Checks: 33559 - 33569 $78,528.44
TOTAL $239,931.86
U.S. BANK 01/15/19
Section 8 Checks: 130368 - 130453 $169,419.84
HRA Checks: 33570 - 33590 $62,565.19
TOTAL $231,985.03
Motion carried 5-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:33 p.m.
Date Approved: April 15, 2019
Mary B. Supple
HRA Chair
Kate Aitchison John Stark
Housing Specialist Executive Director
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Special Concurrent City Council, Housing
and Redevelopment Authority and
Planning Commission Work Session
February 11, 2019
CALL TO ORDER
The work session was called to order by Chair Supple at 6:31 p.m. in the Bartholomew Room.
HRA Members Mary Supple, Chair; Erin Vrieze Daniels; Pat Elliott; and Maria Regan
Present: Gonzalez.
HRA Members Sue Sandahl.
Absent:
Council Members Maria Regan Gonzalez, Mayor; Edwina Garcia; Mary Supple; and Simon
Present: Trautmann.
Planning Commission Sean Hayford Oleary, Chair; James Rudolph; Kathryn Quam; Allysen Hoberg;
Members Present: and Peter Lavin.
Planning Commission Bryan Pynn; and Susan Rosenberg.
Absent:
Staff Present: Katie Rodriguez, City Manager; John Stark, Community Development
Director; Julie Urban, Housing Manager; and Jared Voto, Executive
Aide/Analyst.
Item #1
DISCUSS PROPOSED HOUSING DEVELOPMENT FOR THE CITY GARAGE
SOUTH SITE
Julie Urban, Housing Manager, introduced representatives from MWF Properties.
Chris Stokka, MWF Properties, presented the development team that includes the developer,
builder and property manager. He provided a development summary of the proposed project, with a
four story building with underground parking, a mix of 1, 2, and 3 -bedroom units. Lastly, he discussed
the proposed development schedule.
Council Member Supple asked for a definition of a “land write down”.
Community Development Director Stark stated the developer would be asking for the HRA to
sell the property for a lesser amount than it appraised for, possibly zero. This is in an established TIF
District and the City could pay itself back the difference using tax increment funds.
Special concurrent Council, HRA and Planning
Commission Work Session -2- February 11, 2019
Planning Commissioner Rudolph asked why there is a TIF District if the developer want not
looking for TIF.
Community Development Director Stark stated it is a faster pay back than the City/HRA would
receive from the city allotment of the tax revenues.
Council Member Garcia asked about staff’s review of the proposed project and if the
neighborhood has heard about this project.
Community Development Director Stark responded it has generally been reviewed by staff for
its fit in planning and zoning but specifics, like setbacks, have not b een reviewed. He also stated a
notice has not been sent out for this work session; if policymakers were interested in the proposal
then the next step would be to engage the neighbors.
Planning Commissioner Hoberg asked if there are any environmental conce rns since this was
a previous industrial site.
Mr. Stokka responded it would be something they would look into, but they have developed
sites previously used as dry cleaners.
Community Development Director Stark responded that environmental reports have been
done on the entire site and there shouldn’t be many issues on this site, other than possible soil
removal and clean fill brought in.
Commissioner Elliott commented that it is nice to see workforce housing brought back as he
thinks it is needed in Richfield. He discussed the figures shown and the City Council and HRA’s
decision to know what the buy down would be. He also asked about the size of the units and
discussed the need for affordable housing for families.
Mr. Stokka responded that about 25% a re 1-bedrooms and the rest are 2- or 3-bedrooms.
Planning Commission Chair Hayford Oleary asked about the public storage site to the south
and the possibility of redevelopment of that site.
Department Director Stark responded he did not know if there was possibility of redeveloping
that site.
Commissioner Quam commented that she was impressed that they had never sold a property
and headquartered in Richfield.
Commissioner Lavin asked about the financing and if there was a difference between standard
affordable housing and workforce housing.
Mr. Stokka responded there are a lot of different terms for housing that are financed with tax
credits and affordability levels can go from 20 -80%. Their housing is more toward the 50 -70%, which
they classify as workforce housing.
Council Member Trautmann commented about his concerns on family housing in this
particular location due to the railroad and I-494.
Community Development Director Stark responded that this is use is what is indicated in the
comprehensive plan, currently and the previous plan, so that is the direction they have taken. This
Special concurrent Council, HRA and Planning
Commission Work Session -3- February 11, 2019
proposal is similar to what was proposed in 2011 -2012. He stated it received policymaker support
initially, but had neighborhood opposition. He commented staff is committed to bring the
neighborhood and policymakers together at the same time, if there is interest in the proposal.
ADJOURNMENT
The work session was adjourned by unanimous consent at 7:01 p.m.
Date Approved: April 15, 2019
Mary B. Supple
HRA Chair
Kate Aitchison John Stark
Housing Specialist Executive Director
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
February 19, 2019
CALL TO ORDER
The meeting was called to order by Chair Mary Supple at 7:03 p.m. in the Council
Chambers.
HRA Members Present: Mary Supple, Chair; Maria Regan Gonzalez; and Sue Sandahl;
HRA Members Absent: Pat Elliott and Erin Vrieze Daniels.
Staff Present: John Stark, Executive Director; Melissa Poehlman, Community
Development Assistant Director; Julie Urban, Housing Manager; Kate
Aitchison, Housing Specialist.
APPROVAL OF THE MINUTES OF THE REGULAR HOUSING AND REDEVELOPMENT
AUTHORITY MEETING OF JANUARY 15, 2019.
This item has been postponed until March, 2019.
Item #1
2018 HRA/EDA YEAR IN REVIEW
Executive Director Stark John Stark explained that due to technical difficulties, the Year in
Review will take place with the overhead projector instead of via computer.
Community Development Assistant Director Melissa Poehlman, Housing Manager Julie
Urban and Housing Specialist Kate Aitchison presented the 2018 HRA/EDA Year in Review.
Commissioner Regan Gonzalez commended the presentation and staff of HRA/EDA for all
the work that has been done. She encouraged staff to market this presentation to help residents
understand all the things offered by the city.
Commissioner Sandahl agreed with Commissioner Regan Gonzalez and asked how many
staff are administering the program. Staff stated that there are eight positions covering these
programs.
Chair Supple agreed with previous statements, and stated her excitement and support for
the Apartment Remodeling loan and programs, the First Time Homebuyer program, and Home
Energy Squad Enhanced program.
HRA Meeting Minutes -2- February 19, 2019
Commissioner Regan Gonzalez asked about the timing for funds availab le for the First
Time Homebuyer. Staff responded that funds can be extended or repurposed for other CDBG -
funded programming.
Item #2
APPROVAL OF THE AGENDA
M/Regan Gonzalez, S/Sandahl to approve the agenda.
Motion carried 3-0.
Item #3
CONSENT CALENDAR
Executive Director Stark presented the Consent Calendar:
A. Consideration of the adoption of a resolution approving an Assumption Agreement that
assigns certain rights and responsibilities related to the construction of 30 for -sale
condominiums at the former Lyndale Garden Center site to Lakeside at Lyndale
Gardens LLC. (S.R. No. 11)
RESOLUTION NO. 1327
RESOLUTION APPROVING ASSUMPTION AGREEMENT WITH
LYNDALE GARDENS, LLC AND LAKESIDE AT LYNDALE GARDENS
LLC
B. Consideration of the adoption of a resolution approving an Assignment and Assumption
Agreement (Amended and Restated Contract for Private Redevelopment) to Woodlake
Centre MOB, LLC, a Delaware limited liability company and authorize the Executive
Director to execute an updated Estoppel Cert ificate. (S.R. No. 12)
RESOLUTION NO. 1328
RESOLUTION APPROVING ASSIGNMENT AND ASSUMPTION
AGREEMENT (AMENDED AND RESTATED CONTRACT FOR
PRIVATE REDEVELOPMENT)
Commissioner Sandahl asked for clarification on which building this was for. Staff
responded.
M/Sandahl, S/Regan Gonzalez, to approve the consent calendar.
Motion carried 3-0.
Item #4
CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM CONSENT CALENDAR
None.
HRA Meeting Minutes -3- February 19, 2019
Item #5
CONSIDERATION OF ALLOCATION OF THE HRA-OWNED PROPERTY AT 6412
BLOOMINGTON AVENUE S TO EITHER THE AFFORDABLE
NEW HOME PROGRAM OR THE MARKET-RATE RICHFIELD REDISCOVERED
PROGRAM. (S.R. NO. 13)
Chair Supple requested that commissioners discuss their thoughts prior to making any
motions for this item.
Executive Director Stark offered some thoughts about this topic.
Housing Specialist Kate Aitchison presented Staff Report No. 13.
Chair Supple asked for clarification about the 20% ratio for single -family scattered site
homes, versus multi-family developments. Executive Director Stark confirmed that the current
discussion is only related to scattered -site single family homes developed under the New Home or
Richfield Rediscovered programs. Commissioner Regan Gonzalez asked for clarification about the
programs included under this p olicy. Staff responded. Housing Manager Urban provided some
context for how these programs have been administered over the years, in varying housing
markets.
Commissioner Sandahl asked if we have a way to know how many Richfield residents are
waiting for opportuntieis under the Richfield Rediscovered program. Staff responded that only
anecdotal evidence is available that suggests quite a few residents are interested.
Commissioner Sandahl asked for clarification on the statistic that 96% of Richfield home s
were affordable. Executive Director Stark stated he had looked this up, and that yes, it was
affordable at 80% Area Median Income. Housing Manager Urban clarified that these were numbers
from 2013.
Commissioner Sandahl stated that she considers Richfield to be affordable compared to
similar communities, but does agree that spending significant funds for one property is probably
not responsible. She stated her support for more “move -up” housing as well. She stated her
support for allocating this p roperty for the Richfield Rediscovered program. She suggested saving
the larger conversation for a time when all the commissioners are present.
Commissioner Regan Gonzalez agreed that the property at 6412 Bloomington should be
allocated to the Richfield Rediscovered program, and stated that she believes that including
substantially rehabilitated homes meets the goals and purposes of our New Home Program and
should be included in the Inclusionary Housing Policy.
Chair Supple stated her agreement that inclu ding the substantially rehabilitated homes
would be worth including in the Inclusionary Housing Policy . She also stated her support for the
home at 6412 Bloomington for the Richfield Rediscovered program.
M/Sandahl, S/Regan Gonzalez to allocate the HRA-owned property at 6412 Bloomington
Avenue South to the Richfield Rediscovered (market rate) Program.
Commissioner Regan Gonzalez added that other opportunities will come up during the 3 -
year period that will also help make sure the 20% ratio of affordabilit y is met.
Motion carried 3-0.
HRA Meeting Minutes -4- February 19, 2019
Item #6
HRA DISCUSSION ITEMS
Commissioner Sandahl commended staff for all the hard work that was displayed during the
2019 Year in Review report.
Item #7
EXECUTIVE DIRECTOR REPORT
Executive Director Stark stated that there will be an upcoming tour of the Chamberlain
Apartment complex, which is currently under construction.
He also stated that on February 26, 2019 the City Council will hear the 2019 allocation of
Community Development Block Grant funds (CDBG), which overlap with the HRA.
Item #8
CLAIMS AND PAYROLLS
M/Sandahl, S/Regan Gonzalez that the following claims and payroll be approved :
U.S. BANK 02/18/19
Section 8 Checks: 130454 - 130536 $168,564.94
HRA Checks: 33591 - 33606 $47,178.58
TOTAL $215,743.52
Motion carried 3-0.
Item #9
ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:03 p.m.
Date Approved: April 15, 2019
Mary B. Supple
HRA Chair
Kate Aitchison John Stark
Housing Specialist Executive Director
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Special Concurrent City Council, Housing
and Redevelopment Authority and
Planning Commission Work Session
March 26, 2019
CALL TO ORDER
The work session was called to order by Chair Supple at 5:45 p.m. in the Bartholomew Room.
HRA Members Mary Supple, Chair; Pat Elliott; and Maria Regan Gonzalez.
Present:
HRA Members Sue Sandahl and Erin Vrieze Daniels.
Absent:
Council Members Maria Regan Gonzalez, Mayor; Mary Supple; Edwina Garcia; Simon
Present: Trautmann and Ben Whalen.
Planning Commission Sean Hayford Oleary; James Rudolph; Susan Rosenberg; Peter
Members Present: Lavin; Kathryn Quam; and Allysen Hoberg, Chair (arrived at 6:00 p.m.).
Planning Commission Bryan Pynn.
Absent:
Staff Present: Katie Rodriguez, City Manager; John Stark, Community Development
Director; Julie Urban, Housing Manager; Melissa Poehlman, Planning &
Redevelopment Manager/Assistant CD Director; and Kari Sinning, Deputy
City Clerk.
Item #1
DISCUSS PROPOSED DEVELOPMENT FOR THE CITY GARAGE SOUTH (301
77TH STREET WEST) SITE
Mayor Regan Gonzalez introduced City Manager Rodriguez who reminded the Council and
Commissioners that this meeting is not to decide what happens with the site but a discussion of the
options for the site. She thanked Community Development Director Stark and Housing Manager
Urban for their work on the presentation of which Council Member Garcia echoed.
Community Development Director Stark stated how the comprehensive plan and City policies
can influence what the site could be and how the feedback (need) from the community affects the
proposals.
Housing Manager Urban gave an overview of the site and the proposal from MWF Properties,
a 55-unit workforce housing which could provide 1 bedroom units at 30% AMI for residents. The
communities input for what will be built here is important.
Special concurrent Council, HRA and Planning
Commission Work Session -2- March 26, 2019
Community Development Director Stark spoke about the financial aspects of the site and
stated questions for the Council and Commissioners to discuss.
Planning Commissioner Lavin defined “workforce housing” as an affordable housing project.
Community Development Director Stark stated that there is no single definition of workforce housing
or affordable housing. Commissioner Hoberg gave examples of people that would be classified as
workforce housing.
HRA Commissioner Elliott stated that what we call the housing isn’t important but what we
offer the community is; the safety of children in the area is a concern. He posed a question regarding
a potential nuisance claims from LaMettry’s Auto Body if a housing unit was built there. He also
inquired if there was any commercial interest in the property (i.e. fro m Richfield Bloomington Honda).
Community Development Dire ctor Stark responded that other cities have used different tools to
address odor nuisance problems but he does not believe that this will be an issue and Richfield
Bloomington Honda has not expressed any interest in the property.
Council Member Supple read aloud a statement of support from Commissioner Vrieze Daniels
who was unable to attend.
Planning Commission Chair Hayford Oleary stated that the site is a good location for high -
density housing and provides additional housing for Richfield residents.
Council Member Garcia agreed with Planning Commission Chair Hayford Oleary and stated
that Richfield does not have area for expansion and we need affordable housing for the Residents.
The proposed amenities and the building size are very much needed to invest into our people.
Council Member Whalen thanked the staff and the developers for the opportunity to have more
30% AMI units which is needed in Richfield. He also commented on the availability of units for people
with disabilities and larger families.
Council Member Supple stated that the accessibility of the proposed plan and the support staff
for those with disabilities is a significant influence. However, there is no green space available on the
lot for children to play or families to spend time wi th one another. Overall the pros outweigh the cons;
the City of Richfield needs housing and it’s great to have a local developer.
Commissioner Quam is in favor of the company and agrees that we need housing but we need
to look at it as a whole.
Council Member Trautmann likes the developers and the financial aspects but dislikes the
location. There are structural deficits of the site.
Mayor Regan Gonzalez is in support of the idea but it’s not an ideal site. She posed a question
as to what could be done to make it more neighborhood like. Council Member Whalen stated that
there is already housing along 77th Street that already seems too ostracized from the rest of the City.
There was discussion about the wall along 77th Street.
Commissioner Rudolph posed a question of the impact on the schools which Community
Development Director Stark stated that there will be a meeting with the School Board in May.
Commissioner Rosenberg stated that she is proud of the work to provide afforda ble homes for
people and shared thoughts on how to include those already in the residential areas of 77th Street.
Special concurrent Council, HRA and Planning
Commission Work Session -3- March 26, 2019
ADJOURNMENT
The work session was adjourned by unanimous consent at 7:01 p.m.
Date Approved: April 15, 2019
Mary B. Supple
HRA Chair
Kate Aitchison John Stark
Housing Specialist Executive Director
AGENDA SECTION:Consent Calendar
AGENDA ITEM #2.A.
S TAFF REPORT NO. 14
HOUSING AND RE DEVELOPMENT AUT HORIT Y
MEET ING
4/15/2019
RE P O RT P RE PA RE D B Y: Lynnette C hambers, Multifamily Housing C oordinator
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
4/9/2019
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consider the approval of a proposed adjustment of payment standard for the Section 8 Rent
Assistance voucher program.
E X E C UT IV E S UM M ARY:
The Section 8 program is administered in accordance with the Housing and Redevelopment Authority’s
(HRA) Administrative Plan (Plan). According to the Plan and the Department of Housing and Urban
Redevelopment (HUD) regulation, the Section 8 Rent Assistance voucher program provides financial
assistance based on unit bedroom size. Clients pay a minimum of 30 percent of their income towards rent.
On an annual basis HUD establishes a Fair Market Rent (FMR). The allowable FMR is expressed as a
specific percentile point within the rent distribution of standard-quality rental housing units.
I ndividual HRA’s are allowed to select a payment standard within 90% to 110% of HUD’s F MR. The selection
of the payment standard should assure that a sufficient supply of rental housing is available to program
participants. The Richfield HRA conducts a rental survey on an annual basis to help in determining an
appropriate payment standard. Currently, the survey results indicate that the Richfield HRA should adopt a
payment standard that is 92% or more of the F MR established by HUD.
The new payment standards are effective for J une 1, 2019 and annual re-certifications effective J uly 1, 2019.
The attached table clarifies the changes being proposed. The last adjustment made by the HRA was in
J anuary 1, 2018.
RE C O M M E ND E D AC T I O N:
By motion: Approve the attached adjustment of payment standard for the Section 8 Rent Assistance
voucher 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
See Executive Summary
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The HRA must approve increases in the payment standard for the Section 8 Rent Assistance
voucher program.
Section 8 participants will be able to choose from a larger selection of affordable housing units
and may receive some immediate rent relief on a case by case basis.
HUD provides sufficient federal assistance to cover these adjustments in the payment standards
and has approved the increase.
W ithout an increase in the payment standard many Section 8 participants will be unable to find
housing and keep up with changing rents.
Potential changes in Federal law impact the financial resources available to the program if the
HRA does not remain current with the FMR.
C.C R IT IC AL T IMIN G IS S U E S:
N/A
D.F IN AN C IAL IMPAC T:
An increase in the payment standard will decrease the rent burden for Section 8 participants.
HUD provides sufficient funding to cover the increase.
E.L E GAL C ON S ID E R AT ION:
The contract between the HRA and HUD provides for F MR adjustments in accordance with
federal regulations.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Do not change the payment standard at this time; however, HUD guidelines suggest an adjustment is
needed.
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
P ayment S tandard Increase B ackup Material
Attachment A
Current Payment Standard – Effective January 1, 2018
0 BDR 1 BDR 2 BDR 3 BDR 4 BDR 5 BDR
710 890 1110 1500 1755 1890
New Payment Standard – Effective June 1, 2019 (Move-Ins) July 1, 2019 (Annual Re-certification)
0 BDR 1 BDR 2 BDR 3 BDR 4 BDR 5 BDR
740 910 1130 1530 1800 1940
AGENDA SECTION:Consent Calendar
AGENDA ITEM #2.B.
S TAFF REPORT NO. 15
HOUSING AND RE DEVELOPMENT AUT HORIT Y
MEET ING
4/15/2019
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
4/9/2019
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consider the approval of a Right of Entry Agreement with Twin Cities Habitat for Humanity for 6310
Irving Avenue.
E X E C UT IV E S UM M ARY:
I n 2012, the Housing and Redevelopment Authority (HRA) purchased the substandard property at 6310 I rving
Avenue using Community Development Block Grant (C D B G) funds for the future construction of an
affordable new home.
Twin Cities Habitat for Humanity (TC HF H) approached the City looking for an opportunity to develop a single-
family home. Since that time, the TC HF H has been working on their plans to redevelop the property and is
seeking authorization to enter property owned by the HRA in order to conduct land surveys, soil borings, and
any other environmental testing necessary.
The proposed Right of Entry Agreement (Agreement) authorizes the TC HFH to enter the HRA property to
conduct these activities.
RE C O M M E ND E D AC T I O N:
By motion: Authorize execution of a Right of Entry Agreement with Twin Cities Habitat for Humanity
for 6310 Irving Avenue.
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 2012, the HRA purchased the substandard property at 6310 I rving Avenue using C D B G funds
for development of an affordable single-family home through the New Home Program.
The New Home Program allows homes to be sold to households earning up to 80 percent of
Average Median I ncome ($68,000 for a family of four).
Staff has explored a variety of development proposals for this site and are currently working with
TC HFH on a proposal for an affordable single-family home.
I n the past ten years, eleven new homes were constructed under the New Home program for
affordable purchase.
Under the New Home Program, the HRA has partnered with nonprofit developers to construct over
50 affordable homes since 1981.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The New Home Program implements the goal of the Comprehensive Plan to ensure sufficient
diversity in the housing stock to provide for a range of household sizes, income levels and needs.
The Program carries out the policies that support this goal including:
Promote the development of a balanced housing stock that is available to a range of income
levels.
Promote the development, management and maintenance of affordable housing in the City
through assistance programs, alternative funding sources, and the creation of partnerships
whose mission is to promote low to moderate income housing.
C.C R IT IC AL T IMIN G IS S U E S:
The Agreement expires December 31, 2019.
The Agreement requires the TC HF H to give the HRA three days advanced notice of any work.
Access to the property is necessary for moving forward with a Development Agreement, which is
anticipated to come before the HRA on May 20, 2019.
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 TC HFH'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
Right of E ntry A greement C ontract/A greement
1
RIGHT OF ENTRY AGREEMENT
THIS RIGHT OF ENTRY AGREEMENT (the “Agreement”) is made and entered into on April
15, 2019, by and between the HOUSING AND REDEVELOPEMENT 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 Twin Cities Habitat For Humanity, Inc., a non-profit corporation under the laws of
Minnesota or any assigns approved by the Authority (the “Developer”).
WHEREAS, the Authority is the owner in fee simple of the real estate located at the address of
6310 Irving Avenue South, 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 is investigating the possibility of purchasing the Authority Property
for the purpose of redevelopment; and
WHEREAS, the Developer wishes to have its environmental consultant conduct soil borings, dig
and sample monitoring wells and conduct other environmental studies on the Property in order to identify
whether there may be hazardous substances, pollutants or contaminants present on the Authority Property.
The Developer has requested that Authority grant the Developer, its employees, agents and contractors,
the right to enter the Property to conduct said environmental studies and investigate the location and
extent of any contamination; and
WHEREAS, the Developer also desires to secure the consent of Authority to enter the Authority
Property for the purpose of conducting appraisals, land surveys, and other tests or inspections of the
Authority Property. The Developer has requested that Authority grant its consent to the entry of these
additional consultants onto the Authority Property to conduct their studies; and
WHEREAS, it is understood that in executing this agreement, Authority will not be granting (a)
any permanent interest in the Authority Property to the Developer, or (b) exclusive use or possession of
the Authority Property to the Developer.; and
NOW THEREFORE, the parties agree as follows:
1. Access. The Authority grants to the Developer, its agents, employees, contractors and
invitees, and such other consultants as the Developer may elect (collectively, “Consultants”), upon the
terms and conditions stated below, on a non-exclusive basis, the permission and right to access and use
the Authority Property for the purpose of making surveys, inspections, investigations, soil borings,
drilling and sampling monitoring wells, and testing relative to the Developer’s possible purchase of the
Property.
2. Consideration. In consideration for such right of entry, the Developer agrees to:
(a) Notify Authority of the date and time that work by the Developer or its
Consultants on the Authority Property will commence under this Agreement which notice
shall be at least five (5) business days prior to doing any work on the Authority Property in
order to permit Authority’s employees or consultants retained by Authority to be present
during the time any work is being done by the Developer or its Consultants;
(b) Secure all appropriate government approvals and permits for any work that will
occur within public streets adjacent to the Authority Property;
545753v3 JAE RC125-366 2
(c) Provide a copy of all test results and reports prepared by the Developer’s
employees or Consultants (except appraisal reports) evaluating the conditions present on the
Authority Property to Authority as soon as reasonably possible following final completion
thereof.
(d) Dispose of all solid waste generated during the course of the Developer’s
sampling activities and other work on the Authority Property in accordance with applicable
federal, state and local laws, rules and regulations.
(e) Do the work in the shortest period of time reasonably necessary to complete such
activities authorized under this Agreement as the Developer, in its sole discretion, shall
elect to undertake;
(f) Use the Authority Property only for the purposes described herein and not park
or store any equipment on the Authority Property, except during the limited periods of time
when the work on the Authority Property which is contemplated by this Agreement is
actually in progress;
(g) Do no unnecessary damage to the Authority Property and restore the Authority
Property to substantially the same condition as the condition in which it was found by the
Developer at the time of the Developer’s or its Consultants’ entry upon the Property
pursuant to this Agreement. As soon after completion of its work on the Authority Property
as allowed by applicable authorities, the Developer shall properly abandon and remove any
well installed by the Developer or its Consultants, in accordance with Minnesota
Department of Health regulations;
(h) If the Developer or its Consultants remove a sample or portion of the Authority
Property for investigation, monitoring or testing or obtains any data or issues any report, it
must give Authority an equal amount of the sample or portion and a copy of any data or
report, and must permit the Authority to perform an independent investigation, monitoring,
or testing of the sample or portion.
(i) Protect all monitoring wells with lockable caps and at least three protected posts.
3. Term. The term of this Agreement (the “Term of this Agreement”) shall commence on
the day that this Agreement is executed and will expire on December 31, 2019.
4. Safety and Maintenance. The Developer agrees that if there is damage or changes to the
Authority Property as a result of the activity, the Developer will 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 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.
545753v3 JAE RC125-366 3
5. 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.
6. 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.
7. 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.
8. 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.
9. 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.
10. 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.
11. 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.
12. 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.
545753v3 JAE RC125-366 4
13. 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: Twin Cities Habitat For Humanity
3001 4th Street SE
Minneapolis, Minnesota 55414
Attn: Chad Dipman
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.
14. Execution in Counterpart. This Agreement is executed in any number of counterparts, each
of which shall constitute one and the same instrument.
15. Amendment. This Agreement may be amended only by a written amendment signed by
both parties.
16. 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.
17. 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.
18. 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.
19. 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.
545753v3 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
545753v3 JAE RC125-366 S-2
Execution page of the Developer to the Right of Entry Agreement dated as of the date first written above.
TWIN CITIES HABITAT FOR HUMANITY, INC.
By:
Its: __________________________________________
545753v3 JAE RC125-366 B-1
EXHIBIT A
LEGAL DESCRIPTION OF THE AUTHORITY PROPERTY
Lot 4, Block 6, Rays Lynnhurst Addition, Hennepin County, Minnesota
AGENDA SECTION:PUBLIC HEARINGS
AGENDA ITEM #4.
S TAFF REPORT NO. 16
HOUSING AND RE DEVELOPMENT AUT HORIT Y
MEET ING
4/15/2019
RE P O RT P RE PA RE D B Y: K ate A itchison, Housing S pecialist
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
4/8/2019
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Continue a public hearing to consider the sale of 6310 Irving Avenue to Twin Cities Habitat for
Humanity for the construction of a single-family home.
E X E C UT IV E S UM M ARY:
Twin Cities Habitat for Humanity is working with staff to develop a proposal for a newly constructed home to
be located at 6310 I rving Avenue. This is a Housing and Redevelopment Authority (HRA) owned property that
has been designated for affordable new construction under the New Home Program. Due to detailed
requirements of federal funding sources, staff is requesting more time to finalize the Contract for Private
Development.
RE C O M M E ND E D AC T I O N:
By motion: Continue the public hearing for the sale of 6310 Irving Avenue to Twin Cities Habitat for
Humanity to May 20, 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
None
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
None
C.C R IT IC AL T IMIN G IS S U E S:
None
D.F IN AN C IAL IMPAC T:
None
E.L E GAL C ON S ID E R AT ION:
Notice of this public hearing was published in the Sun Current Newspaper. A mailed notice will be
sent to nearby properties prior to the May meeting.
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:
None
AGENDA SECTION:OTHER BUSINESS
AGENDA ITEM #5.
S TAFF REPORT NO. 17
HOUSING AND RE DEVELOPMENT AUT HORIT Y
MEET ING
4/15/2019
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
4/9/2019
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consider revisions to the Inclusionary Housing Policy with regards to Housing and Redevelopment
scattered-site programs.
E X E C UT IV E S UM M ARY:
I n February, the Housing and Redevelopment Authority (HRA) discussed the application of the I nclusionary
Hosing policy to its scattered-site housing programs. Commissioners determined that developments involving
rehabilitation and long-term affordability meet the intent of the policy. I n the case of this policy, long-term
affordability would need to be demonstrated through a land-trust deed, a mortgage restriction or other
enforceable document requiring affordability.
The revised policy has been attached for HRA consideration (with the only changes being to subdivision 4). I f
approved, the revision would be brought before the City Council and Economic Development Authority for
their consideration.
RE C O M M E ND E D AC T I O N:
By motion: Adopt a revised Inclusionary Housing Policy, clarifying language relating to the Housing
and Redevelopment Authority's scattered-site housing programs.
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 February, the HRA discussed the application of the I nclusionary Housing Program to its
scattered-site housing programs. Historically, the HRA's New Home Program has involved both
new construction and rehabilitation of existing housing. The focus on one or the other has been
flexible, depending on market conditions.
The HRA determined that it was appropriate to clarify the I nclusionary Housing policy to include
those housing units that are rehabilitated and for which long-term affordability is ensured.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The HRA adopted the I nclusionary Housing Policy on October 15, 2018, to ensure that projects
that receive HRA funding include a mix of affordable as well as market-rate housing. W ith regards
to the HRA's scattered-site programs, the policy requires that at least 20 percent of the units
constructed in any three-year period must meet the proscribed affordability requirements.
C.C R IT IC AL T IMIN G IS S U E S:
The policy update would be considered by the City Council on April 23, 2019 and by the
Economic Development Authority at their next meeting.
D.F IN AN C IAL IMPAC T:
I n the current housing market, the per unit subsidies for constructing new and rehabilitating
existing housing is substantial. The HRA has historically adapted the New Home Program to
respond to changing market conditions and provide the greatest impact with the limited financial
resources available. Updating the I nclusionary Housing Policy would be consistent with this
practice.
E.L E GAL C ON S ID E R AT ION:
NA
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Decide not to revise the I nclusionary Housing Policy.
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
Inclusionary Housing P olicy update B ackup Material
City of Richfield
Richfield Housing and Redevelopment Authority
Richfield Economic Development Authority
Inclusionary Affordable Housing Policy
The City of Richfield, Richfield Housing and Redevelopment Authority, and Richfield Economic
Development Authority are committed to building a community that is welcoming and affordable to
a diverse population of individuals and families at all stages of their lives. As such, we hereby
establish the following policy for the inclusion of affordable housing in development proposals.
Requirements
1. Housing Development Projects containing the construction of at least 5 new units which receive
Financial Assistance from HRA, EDA or City:
a. Must contain at least 20% affordable units
i. At least 20% of rental housing units must be made affordable to tenant
households earning no more than 60% of the Area Median Income over a period
of ten years or the duration of the subsidy (whichever is longer);
ii. At least 20% of owner-occupied housing units must be made affordable to, and
initially sold to, households earning no more than 115% of the Area Median
Income;
iii. At least 20% of the grand total of housing units in a mixed rental/ownership
development must be affordable at the affordability levels established in 1.a)i
and 1.a)ii,
or;
b. Must contribute to the Richfield Housing and Redevelopment Fund
i. 15% of the “net present value” of Tax Increment generated by the project (or
15% of the net present value of other types of assistance) must be pledged to
the Richfield Housing and Redevelopment Fund over a period of ten years or the
duration of the subsidy (whichever is longer), or;
ii. A pro-rata combination of the above (i.e. 10% affordable units and a 7.5%
contribution) may be considered, and;
c. Must agree to provide 90 days’ advance notice to the public body providing funding of
any sale of the property,
and;
d. Must agree to not discriminate against households utilizing Housing Choice Vouchers
(Section 8) or other forms of rental assistance.
2. Non-Housing Development Projects that receive Financial Assistance from HRA, EDA or City and
which result in the loss of affordable housing:
a. Affordable housing units eliminated by the project must be replaced on-site or at
another location in Richfield by the developer at similar affordability levels, or;
b. 5-15% (depending on the magnitude of the loss of affordable housing) of the “net
present value” of the Financial Assistance provided must be pledged to the Richfield
Housing and Redevelopment Fund over a period of ten years or the duration of the
subsidy (whichever is longer).
Incentives
3. Housing Development Projects which include affordable units (as outlined in 1a above) are
eligible to apply to the City for the following considerations regardless of whether or not they
receive Public Financial Assistance:
i. Building Permit Fee Reductions (10% reduction for rehabilitation and/or 5%
reduction for new construction);
ii. 4d Property Tax Reduction (rental projects);
iii. Consideration of code flexibility (e.g., smaller setbacks, excessive impervious
surface, etc.) in planned unit developments;
iv. A housing unit density bonus of 5-15% (e.g., a project in an area that allows 8-24
units/acre could add an additional 1-4 units/acre and remain in compliance).
Exceptions
4. With regards to “scattered-site single family housing development,” at least 20% of the units
newly constructed or rehabilitated and converted to long-term affordability in any three-year
period must meet the proscribed affordability requirements.
5. The City Council or Board of Commissioners of the Housing and Redevelopment Authority or
Economic Development Authority may vary the application of this policy as circumstances
warrant with the adoption of findings of the reasons for doing so.
Adopted:
This 23rd day of October, 2018 by the Richfield City Council.
______________________ _______________________
Mayor City Manager
This 15th day of October, 2018 by the Richfield Housing and Redevelopment Authority.
______________________ _______________________
Chair Secretary
This 15th day of October, 2018 by the Richfield Economic Development Authority.
______________________ _______________________
President Secretary