01-19-10 agenda packetAGENDA ITEM #
REPORT #
J
STAFF REPORT
6
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
.TANUARY 19, 2009
REPORT PREPARED BY: JULIE URBAN, HOUSING SPECIALIST
NAME, TITLE
REPORT PRESENTER: JOHN STARK, COMMUNITY DEVELOPMENT
DIRECTOR
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY EXECUTIVE DIRECTOR:
~+~-.~
ITEM FOR HRA CONSIDERATION:
Consideration of a proposed settlement of a Housing and Redevelopment Authority deferred
loan mortaaae.
I. RECOMMENDED ACTION:
By Motion: Approve or deny a proposal made by the owner of 6804
Morgan Avenue for settlement of a $25,000 Deferred Loan in the
amount of $1,000.
II. BACKGROUND
On February 11, 2002, the owner of 6804 Morgan Avenue received a Richfield
Deferred Loan for $25,000. The terms of the Deferred Loan require the home
owner to repay the loan in full, at no interest, upon sale of the property. If the
original owner remains in the home, the Loan is fully forgiven after 30 years.
Due to financial and personal reasons, the owner is now seeking to sell the
property to avoid foreclosure ("short sale"). The owner recently listed the property
for $89,900 and received multiple offers. The best offer received is for $102,000.
The owner is proposing to use the proceeds to settle the following debts:
011910 Deferred Loan Settlement Request.doc
Debt ~ Amount Owed Proposed Settlement Ratio
Settlement
First Mort a e TCF
..........................................................~........~.........._~........................~....................,....... $,94.,,950.....:.
,....................... _$89,508.6.3...._ .....
_. .........................................................................................._94%.....
Second Mort a e TCF
..........................................................................g........g............~........................)...........
....................$41,750.................
,........................
......................................................$.1..~.000.~.~.~.......... o
......................................................................................._2.4/0
,
Total TCF $136, 700 e
.... .............................................._$90, 508.63..._..... ............................................................................................66%.....
Deferred Loan HRA ................ ......
..............................................
.....................................................$25,000................. .................................................._$1,,.000.0.0 _.....4%.....
Pro ert Taxes
.........................P...............Y.................................................................................................. .................$1..612.48.................
,................... , ....................................................._$..1 ~.61.2.~4.8........... ....................................................................................._x..00%.....
Assessment/water bill $743.09................. .........................................................$743.09.......... ....................................................................................._x._00%.....
_
Settlement Char. es ............................................._
8
~
3
5
~
$~ ...................._$..._~._35.~_$.~.........
... ................................._......................:............................100%.....
TOTAL .................
_......_
...._
._
.
.
_
$.1..72~..1..91...~.37 .................. ......................
.
.......................................................~.1. 020.0.0........... ......................................................................................59%
The HRA's foreclosure policy (adopted by the HRA on September 17, 2007) also
addresses short sales. That policy authorizes staff to negotiate the best possible
payoffs of HRA mortgages in the event of a short sale. Based on that policy, staff
attempted to negotiate a 50 percent settlement with the seller (a payoff of $12,500).
Staff felt that the 50 percent settlement was reasonable given that the two
mortgages ahead of the HRA's (both held by TCF Bank) had apparently agreed to a
cumulative settlement at 66 percent of their remaining principal. Typically,
settlements are less for junior mortgages than for those which supersede them.
Staff was told that, given the low sales price for the property and the amount of debt
TCF is expected to forgive, TCF would not be willing to agree to more than a
nominally higher amount than $1,000.
If the HRA and the homeowner cannot reach an agreement regarding the payoff of
the HRA mortgage, this property is likely to go into foreclosure. As a lien holder,
the HRA would have the opportunity to redeem the foreclosure. To do so, however,
the HRA would either have to satisfy the outstanding mortgages or negotiate a
settlement with those lien holders (the same situation as the current homeowner).
III. BASIS OF RECOMMENDATION
A. POLICY
• The HRA acts to protect its financial interests.
• The Mortgage Foreclosure Response Program Procedural Guidelines,
states as follows: "Staff will consider short sale offers and negotiate as
high of repayment as possible. Action will be taken quickly so as to not
disrupt the short sale opportunity and cause the homeowner to enter
into foreclosure."
• The purpose of the Deferred Loan is to provide resources to low-
income homeowners to maintain and improve their homes. To qualify
for a no-interest deferred loan, applicants must earn less than 50
percent of the area median income. Deferred Loan recipients typically
do not have the financial ability to make costly home improvements on
their own.
B. CRITICAL ISSUES
• The house has two bedrooms, one bath, no garage, and is in poor
condition.
• The property has a current assessed value of $170,000.
• The listed sale price of the home was determined by the listing agent
based on comparable sales in the area. The fact that multiple offers
were received for more than the list price may indicate that the house
could sell for a higher value or may confirm that the house is not going
to sell for the current amo~rnt of debt against the property.
• Given the numbers in this situation, it is unlikely the HRA should
expect to recover the full value of the lien.
• The HRA agreed to subordinate its loan in 2003, 2004 and 2005.
• If the HRA declines to settle the loan, the homeowner could face
foreclosure.
• Neighborhoods in which there are one or more foreclosed and vacant
homes have detrimental impacts on the surrounding property values.
• No information is known about the proposed buyers' intentions for the
property.
C. FINANCIAL
• The owner has lost his job and has submitted financial information
indicating that he qualifies for a short sale under bank policy.
• The proposed settlement rate is $.04 for every $1.00.
• It is in the best interest of the HRA to not have the property foreclosed
by the lender as the lender could offer the HRA nothing. The HRA
has a subordinated position to the primary lender.
• The Deferred Loan Program is funded with Community Development
Block Grant (CDBG) money. The HRA established the requirement
that a borrower must pay back the loan prior to the 30 term. There is
no federal requirement to pay back the funds.
D. LEGAL
• Legal counsel has confirmed the HRA's authorization under a short
sale.
IV. ALTERNATIVE RECOMMENDATION(S~
• Deny the proposed settlement.
• Propose a different settlement amount.
• Authorize staff to negotiate a settlement amount within certain parameters.
V. ATTACHMENTS
• N/A
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
.REVISED
CITY OF RICHFIELD, MINNESOTA
TUESDAY, JANUARY 19, 2010 -
SPECIAL HOUSING AND REDEVELOPMENT AUTHORITY WORKSESSION
RICHFIELD CITY HALL COUNCIL CHAMBERS
6700 PORTLAND AVENUE
6:00 P.M.
Call to order -
Roll call
1. Discussion with Minnesota Life College regarding future expansion plans in Richfield
Notes:
2. Discussion with Ron Clark Construction regarding potential uses of former City
garage/HRA-owned mortuary site
Notes:
Adjournment
REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
RICHFIELD CITY HALL COUNCIL CHAMBERS
. 6700 PORTLAND AVENUE
7:00 P.M.
AGENDA
Call to order
Roll call
1. Consideration of election of HRA officers for 2010
Staff Report No. 1
Notes:
2. Approval of minutes of Regular HRA Meeting of December 21, 2009
3. HRA approval of agenda
4. Consent Calendar contains several eparate items which are acted upon by the HRA in
one motion. Once the Consent Cal ndar has been approved, the individual items and
recommended actions have also be n approved. No further HRA action is necessary.
However, any HRA Commissioner may request that an item be removed from the
Consent Calendar and placed on th~ regular agenda for HRA discussion and action. All
A. Consideration of approval of designating Community Development Director as
Acting Executive Director of HRi4 in event Executive Director is absent from City for
2010 S.R. No. 2
B. Consideration of approval of resolutions designating official depositories for HRA,
including collateral, for 2010 S. . No. 3 .
C. Consideration of approval of re olution designating Richfield Sun-Current as official
newspaper for 2010 S.R. No. 4
D. Consideration of approval of 20 0 consultant services agreement with Greater
Metropolitan Housing Corporati n S.R. No. 5
Notes:
5. Consideration of resolution authori ~ing HRA Executive Director and HRA Chair to
execute instruments necessary to urchase vacant and foreclosed properties from
Housing and Redevelopment Fund hrough December 31, 2010
Report No. 6
Notes:
6. Consideration of proposal made by
.$25,000 HRA deferred loan
Notes:
er of 6804 Morgan Avenue for settlement of
Report No. 7
7. Executive. Director report
8. Claims and payroll
Adjournment
Auxiliary aids for individuals with disab lities are available upon request. Requests must
be made at least 96 hours in advance to,the City Clerk at 612-861-9738.
J
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
December 21, 2009
CALL TO ORDER
The meeting was called to order by Chair Sandahl at 7:04 p.m.
ROLL CALL
HRA Members
Present: Sue Sandahl, Chair; Joan Helmberger; Doris Rubenstein; David Gepner;
and Steven Quam.
Staff Present: John Stark, Acting Executive Director and Theresa Schyma, Deputy City
Clerk.
Item #1 HRA APPROVAL OF MINUTES
2009.
M/Gepner, S/Quam to approve the minutes of (1) Regular HRA Meeting of November 16,
Motion carried 5-0.
Item #2 HRA APPROVAL OF AGENDA
M/Rubenstein, S/Quam to approve the agenda.
Motion carried 5-0.
HRA Meeting
-2- December 21, 2009
Item #3 CONSENT CALENDAR
A. Consideration to approve and authorize execution (subject to minor revisions by legal
counsel) of a NSP I Developer Agreement with the Greater Metropolitan Housing
Corporation for the acquisition, rehabilitation and`sale of houses through the Neighborhood
Stabilization Program S.R. No. 49
B. Consideration to approve and authorize execution of a First Look Program Acquisition
Agreement and an Access and Indemnification Agreement (subject to minor revisions by
legal counsel) with the Twin Cities Community Land Bank LLC for the acquisition of
foreclosed property S.R. No. 50
M/Rubenstein, S/Gepner to approve the Consent Calendar.
Motion carried 5-0.
Item #4 CONSIDERATION OF REQUEST FOR SUBORDINATION OF HRA
TRANSFORMATION HOME LOAN AT 201 72ND STREET WEST S.R. NO. 51
Acting Executive Director Stark presented Staff Report No. 51.
Calan Hanzel, 201 72nd Street West, was present for questions.
M/Sandahl, S/Helmberger to approve request for subordination of HRA Transformation
Home Loan at 201 72nd Street West.
Motion carried 5-0.
Item #5 CONSIDERATION OF CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN
HRA AND CHARLES ZAWISLAK FOR REDEVELOPMENT OF 6320 MORGAN
AVENUE UNDER RICHFIELD REDISCOVERED PROGRAM S.R. NO. 52
Acting Executive Director Stark presented Staff Report No. 52.
Charles Zawislak, 6320 Morgan Avenue, was present for questions.
Commissioner Rubenstein questioned whether the City's lien would remain in first position.
Acting Executive Director Stark responded that, with the Richfield Rediscovered Program,
there is only a lien on the property until the construction on the house is complete.
Jerry Mazara, Design Forum, stated that it was a challenge but enjoyed designing the
property.
Chair Sandahl encouraged residents and designers to attend the Richfield Remodeling Fair
in January.
HRA Meeting -3- December 21, 2009
M/Gepner, S/Quam to approve contract for private redevelopment between HRA and
Charles Zawislak for redevelopment of 6320 Morgan Avenue under Richfield Rediscovered
Program.
Motion carried 5-0.
Item #6 EXECUTIVE DIRECTOR REPORT
Acting Executive Director Stark announced the January HRA Meeting has been rescheduled
to Tuesday, January 19 due to the observation of Martin Luther King, Jr. Day. Also, the February
HRA Meeting has been rescheduled to Tuesday, February 16 due to the observation of President's
Day.
Commissioner Rubenstein stated that she is unable to attend the January HRA Meeting.
Item #7 CLAIMS AND PAYROLL
M/Gepner, S/Quam that the following claims and payrolls be approved:
U.S. Bank 12-21-2009
Section 8 Checks: 118224 - 118362
HRA Checks: 30760 - 30796
TOTAL
Motion carried 5-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:20 p.m.
Date Approved:
$ 174, 544.11
$ 52,402.42
$227,946.53
Suzanne M.Sandahl
Chair
Theresa Schyma
Deputy City Clerk
John Stark
Acting Executive Director
AGENDA ITEM # - 1
REPORT # 1
STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 19, 2010
REPORT PREPARED BY:
CHERYL KRUMHOLZ, EXEC. COOR.
Nance, TITLE
REPORT PRESENTER: S
L. DEVICH, EXECUTIVE DIRECTOR
NAnrE,
REVIEWED BY EXECUTIVE
ITEM FOR HRA CONSIDERATION:
Consideration of the election of ofFcers for the Housing and Redevelopment Authority (HRA)
for 2010.
I. RECOMMENDED ACTION:
By Motion: Elect officers for the Richfield Housing and
Redevelopment Authority for 2010.
II. BACKGROUND
The bylaws of the Richfield Housing and Redevelopment provide that the HRA hold
an annual meeting in January. The bylaws further provide that the Chair, Vice Chair
and Secretary of the HRA be elected at this meeting.
Officers for 2009 were:
Sue Sandahl, Chair
David Gepner, Vice Chair
Joan Helmberger, Secretary
0119officers
III. BASIS OF RECOMMENDATION
A. POLICY
• The bylaws of the Richfield.HRA provide that the HRA hold an annual
.meeting in January.
• The bylaws further provide that the Chair, Vice Chair and Secretary of
the HRA be elected at thismeeting.
B. CRITICAL ISSUES
• The bylaws of the Richfield HRA require that an election of officers for
the HRA be held at the annual meeting in January.
IV. ALTERNATIVE RECOMMENDATION~S~
• Do not hold the election. However, this would be in contradiction of the HRA
bylaws.
V. PRINCIPAL~PARTIES EXPECTED AT MEETING
• None.
AGENDA ITEM # LFA
REPORT # 2
STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 19, 2010
REPORT PREPARED BY:
CHERYL KRUMHOLZ, EXEC. COOR.
~~
REPORT PRESENTER:
STEV,~i~f-L. DEVICH, EXECUTIVE DIRECTOR
NAME,
REVIEWED BY EXECUTIVE DIltECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of designating the Community Development Director as the Acting Executive
Director of the Housing and Redevelopment Authority (HRA) for 2010 in the event the
Executive Director is absent from the Cit .
I. RECOMMENDED ACTION:
By Motion: Designate the Community Development Director as
Acting Executive. Director of the HRA in the event the Executive
Director is absent from the City.
II. BACKGROUND
Since the City Manager also serves as the HRA Executive Director, it is
recommended that the Community Development Director be designated by the
HRA as the Acting Executive Director to serve in that.capacity during the absence
of the Executive Director.
The Community Development Director was designated Acting Executive Director for
2010.
III. BASIS OF RECOMMENDATION
A. ~ POLICY
0119acting
• Designation of an Acting Executive Director is a normal business
action of the HRA similar to the designation of depositories and the
official newspaper.
• The Community Development Director has been designated as the
Acting Executive Director in the past.
B. CRITICAL ISSUES
• It is necessary to designate a person to serve as the Acting Executive
Director to ensure continuation of HRA operations during an absence
of the Executive Director..
IV. ALTERNATIVE RECOMMENDATION(S~
• Defer this designation to another HRA meeting. -
V. PRINCII'AL PARTIES EXPECTED AT MEETING
• None.
AGENDA ITEM # /+$
REPORT # 3
STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 19, 2010
REPORT PREPARED BY: CHRIS- REGIS, FINANCE MANAGER
NAME, TITZE
F
REPORT PRESENTER:. STEVEN L. DEVICH, EXECUTIVE DIRECTOR
. NAME TI7ZE
DEPARTMENT DIRECTOR REVIEW: V~ ~~!(~
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of resolutions designating official depositories for the Housing and
Redevelo ment Authorit for 2010, includin the a royal of collateral.
I. RECOMMENDED ACTION:
By Motion: Adopt the attached resolutions designating official
depositories, with the understanding that the HRA could not invest in
any of the depositories beyond the level of insurance coverage of the
pledged collateral.
II. BACKGROUND
N/A
III. BASIS OF RECOMMENDATION
N/A
A. POLICY
• In 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.
0119depositories
• 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 IJ.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.. With 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 2010. These institutions,
such as investment brokerage firms, offer government securities in the
manner required by law. These financial institutions include U.S. Bank,
RBC Dain Rauscher, Wells Fargo Institutional Brokerage & Sales,
Morgan Keegan, Northland Securities and the 4M Fund.
B. CRITICAL ISSUES
• N/A
C. FINANCIAL
• N/A
D. LEGAL
• 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 attached resolutions.
E. ENVIRONMENTAL CONSIDERATIONS
• N/A
IV. ALTERNATIVE RECOMMENDATION~S~
• The HRA could solicit other financial institutions for official depositories, but
past relationships with the depositories recommended have proven
satisfactory for the City.
V. ATTACHMENTS
• .Resolution designating US Bank a depository of funds of the HRA of Richfield
for the year 2010.
• Resolution designating certain savings and loan associations, banks, and
credit unions as depositories for the investment of HRA funds in 2010.
• Resolution designating certain financial institutions as depositories for the
investment of HRA of Richfield funds in 2010.
VI. PRINCIl'AL~PARTIES EXPECTED AT MEETING
• None
~~~~I
RESOLUTION NO.
RESOLUTION DESIGNATING U.S. BANK
A DEPOSITORY OF FUNDS OF THE HRA OF RICHFIELD
FOR THE YEAR 201.0
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 anytime 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;
SUZANNE M. SANDAHL, CHAIR
STEVEN L. DEVICH, EXECUTIVE DIRECTOR
BE IT FURTHER RESOLVED, that all funds remaining in the account at the end of
each business day will be transferred from U.S. Bank to the 4M Fund where funds
deposited are invested and insured.
Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this
19th day of January, 2010.
Suzanne M. Sandahl, Chair
ATTEST:
Joan Helmberger, 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 2010
BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield,
Minnesota:
WHEREAS, pursuant to Minnesota Statutes, Sections 118A.01 - 118A.06,
municipal funds may be deposited in any Savings and Loan Association, Bank or Credit
Union which has its deposits insured by the Federal Deposit Insurance Corporation
(FDIC), or National Credit Union Administration (NCUA); and
WHEREAS, the amount of said deposits may not exceed the FDIC/NCUA
insurance covering such deposits which insurance amount is presently $250,000; and
WHEREAS, the deposit of Housing and Redevelopment Authority funds in Savings
and Loan Associations and Banks would provide greater flexibility in the Housing and
Redevelopment Authority's investment program and maximize interest income thereon.
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority of Richfield, Minnesota, as follows:
1. It is hereby found and determined that it is in the best interest of the proper
management of Housing and Redevelopment Authority funds that certain
Savings and Loan Association and Banks be designated as additional
depositories for Housing and Redevelopment Authority funds for 2010.
2. It is further found and determined that the purpose of such depository
designation is to facilitate the proper and advantageous investments of Housing
and Redevelopment Authority funds and that such designation is not exclusive
nor does it preclude the deposit of any Housing and Redevelopment Authority.
funds in other officially designated depositories of the Housing and
Redevelopment Authority.
3. The Treasurer and Finance Manager are hereby authorized to deposit Housing
and Redevelopment Authority funds in various depositories up to the amount of
$250,000, or such other amount as may be subsequently permitted by law, such
deposits to be in the form of demand accounts, payable to the Housing and
Redevelopment Authority of Richfield on the signatures of the Housing and
Redevelopment Authority Treasurer or Finance Manager. Such deposits may
be made and withdrawn~from time to time by the Treasurer or Finance Manager
as his best judgment and the interests of the Housing and Redevelopment
Authority dictates.
4. The investment of funds and the reporting thereof pursuant to this resolution
shall be conducted in accordance with established policies of the Housing and
Redevelopment Authority regarding the investment of Housing and
Redevelopment Authority funds.
Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 19~' day
of January, 2010.
Suzanne M. Sandahl, Chair
ATTEST:
Joan Helmberger, Secretary
`[ ~°~
RESOLUTION NO.
RESOLUTION DESIGNATING CERTAIN FINANCIAL
INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF
HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2010
WHEREAS, the Housing and, Redevelopment Authority of Richfield has money which
is available for investment; and
and
WHEREAS, different financial institutions offer different rates of return on investments;
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 2010.
2. The following financial institutions designated as depositories for the Housing and
Redevelopment Authority of Richfield funds:
RBC Dain Rauscher, Inc.
Morgan Keegan & Company.
Wells Fargo Institutional Brokerage & Sales
4M Fund
Northland Securities, Inc. --
3. The Treasurer and Finance Manager are hereby authorized to deposit the
Housing and Redevelopment Authority of Richfield funds in any or all of the
depositories herein designated. Such deposits may be made and withdrawn
from time to time by the Treasurer or Finance Manager's judgment and as the
interest of the Housing and Redevelopment Authority of Richfield dictates.
4. The investment of funds and the reporting thereof pursuant to this resolution
shall be conducted in accordance with established policies regarding the
investment of these funds.
Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 19th
day of January, 2010.
Suzanne M. Sandahl, Chair
ATTEST:
Joan Helmberger, Secretary
AGENDA ITEM # LEC
REPORT # 4
STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 19, 2010
REPORT PREPARED BY: NANCY GIBBS, CITY CLERK
NAME, TITLE
REPORT PRESENTER: STEVEN L. DEVICH, EXECUTIVE DIRECTOR
NAME, 77TLE
DEPARTMENT DIRECTOR REVIEW:
,SIGNATURE
REVIEWED BY EXECUTIVE DIlZECTOR: l •
ITEM FOR HRA CONSIDERATION:
Consideration of resolution designating an official newspaper for 2010.
I. RECOMMENDED ACTION:
By Motion: Approve the resolution designating the Richfield Sun=
Current as the official newspaper for the Cit of Richfield for 2010
II: BACKGROUND
The Richfield Sun-Current, published by Minnesota Sun Publications, has been the
City's official newspaper for many years.
Attached is a copy of a letter from Minnesota Sun Publications requesting that they
be designated the official newspaper for the City of Richfield for 2010. The 2010
advertising rate structure for-legal notices is as follows:
1 Column width
$14.30 per inch for first insertion
$ 7.15 per subsequent inch
There are 11 lines per inch. The 2009 rate was the same as the rate proposed for
2010.
0119newspaper
For 2010 the Minneapolis Star Tribune Newspaper could be considered as the
official newspaper. Attached is a fax of the 2010 advertising rate structure for legal
notices in the Sunday and weekday, metro and statewide issues. The rate is $3.40
per line. The 2009 rate was the same as the rate proposed for 2010. Based on the
2010 rates for 11 lines per inch, the total would be $37.40 per inch in the Star
Tribune compared to $14.30 per inch in the Sun-Current.
III. BASIS OF RECOMMENDATION -
A. POLICY
• The City of Richfield Charter requires, in Section. 13.01, that the City
Council annually designate an official newspaper for the City.
• The Sun-Current has expressed an interest in continuing to serve as
the official newspaper of the City.
• The Sun-Current has served ,well as the official paper for many years.
B. CRITICAL ISSUES
• The designation must be made at the first meeting of the new year.
C. FINANCIAL
• The cost of the official publication is reasonable.
D. LEGAL
• A newspaper must be designated each year by the City for publication of
all official and legal City business.
IV. ALTERNATIVE RECOMMENDATION~S~
• Not make a designation and request the City Clerk's office to .check into using
another publication.
V. ATTACHMENTS
• Resolution
• -Letter from Minnesota Sun Publications
• Fax from Star Tribune
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None
~ c---
HRA RESOLUTION NO.
RESOLUTION DESIGNATING AN OFFICIAL NEWSPAPER FOR 2010
WHEREAS, the Charter of the City of Richfield requires in Section 13.01 thereof
that the HRA annually designate an official newspaper for the City.
NOW, THEREFORE, BE IT RESOLVED that the Richfield Sun-Current is
designated the offcial legal newspaper for the City of Richfield for 2010 for all publications
required to be published therein.
Adopted by the HRA of the City of Richfield, Minnesota this 19th day of January,
2010.
Suzanne M. Sandahl, Chair
ATTEST:
Joan Helmberger, Secretary
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~~~~ ~~r°~ Beacon
116 East River 408 E. Main St.
Monticello, MN 55362 Mekose, MN 56352
~~"~
PRESS
MEWS ~~~s»i
www:mneun.com
33 Second St. N.E. 10917 Valley View Road
Osseo, MN 55369 Eden Prairie, MN 55344
Swn Patriot ~~~~~~~~
~~ Newspapers
8 Elm Street South 1931 Curve Crest Blvd.
Waconia, MN 55387 Stillwater, MN 55082
November 2009
City of Richfield
City Council
6700 Portland Avenue
Richfield, MN 55423-2599
Dear City Council Members:
The Richfield Sun-Current would like to be considered for designation as the legal newspaper for the
City of Richfield. for the upcoming year.
All published legal notices are posted on our website (www.mnsun.com) of no additional charge.
This is an enhancement to the local news coverage already available on the Internet and will
broaden the readership of your legal notices.
One of the main benefits of publishing your legal notices with the- Sun-Current is our home delivery.
Sun Newspapers has become the primary source of community news in the suburbs. Your notices in
our paper have the best change of being seen and read.
We would like to continue working with you, therefore, we will not be making a rate change for the
coming year.
The rate structure. for legals effective the first of the year will be:
1 column width: $14.30 per inch for first insertion
$7.15 per inch for subsequent insertions
Our columns are 14 picas wide
There are 11 lines per inch
Two notarized affidavits on each of your publications will be provided with no additional charge.
The deadline for regular length notices is 2:00 p.m. the Thursday prior to publication. E-mailing the
legal notices is an efficient and accurate way of getting the notices to us. The e-mail ad-dress for the
legals department is sunleaalsC acnpapers.com. If you require more information to make your deci-
sion, please contact me or Mary Ann Carlson, our Legals Representative, at 952=392-6829.
Thank you for considering the- Sun:Current as the official newspaper for the City of Richfield for the
upcoming year. We appreciate the opportunity to serve the needs of your community.
In the Community • With the Community • For the Community
12/15/2009 18:10 FAa 612 673 4884
STAR TRIBUNE CLS. ADV.
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Phoney ba4e: 12/15/09
!ate Legal Notice Rates cc: `'
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The Star Tribune Legal Notice rate is $3.40 per line. Statewide ~ ~j
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and Online are included at no additional charge.
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If you have any ques#ions or l can be of further assistance, please do na~t`
hesitate to call.
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AGENDA ITEM # LFD
REPORT # rj
STAFF REPORT
r HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 19, 2010
REPORT PREPARED BY:
REPORT PRESENTER:
KAREN BARYON, COMMUNITY
DEVELOPMENT ASSISTANT DIRECTOR
NAME, TITLE
JOHN STARK, COMMUNITY DEVELOPMENT
DIRECTORA
NAME, TITLE
DEPARTMENT DIlZECTOR REVIEW:
REVIEWED BY EXECUTIVE
ITEM FOR HRA CONSIDERATION:
Consideration of annual Consultant Services Agreement with the Greater Metropolitan
Housin Corporation for 2010.
I. RECOMMENDED ACTION:
By Motion: Authorize the attached Consultant Services Agreement
with the Greater Metropolitan Housing Corporation for 2010.
II. BACKGROUND
The Greater Metropolitan Housing Corporation (GMHC) specializes in a variety of
housing programs and services: GMHC's partnership with the Richfield Housing
and Redevelopment Authority (HRA) began in 2004 and offers a wide variety of
housing programs and services to Richfield residents.
In 2009, GMHC provided 164 services to 121 Richfield residents through its
Southside Housing .Resource Center (HRC). In addition, three Minnesota Housing
Finance Agency loans were processed through the HRC.
Services offered in the scope of services include, but are not .limited to:
• Home buyer information, loan services (including Minnesota Housing
Finance Agency loans), construction consultations, energy assistance,
01192010 2010 GMHC Services Contract.doc
mortgage foreclosure prevention, home improvement information, and
assistance with rental and emergency housing issues.
The HRA has previously successfully partnered with GMHC for the construction of
affordable houses built under the New Home Program as well as the purchase and
rehabilitation of properties through the Neighborhood Stabilization Program.
III. BASIS OF RECOMMENDATION
A. POLICY
• A partnership between the HRA and GMHC ensures comprehensive
rehabilitation resources available to Richfield residents.
• New opportunities are available because of the partnership in the area of
new and rehabilitated homes for modest income homeowners.
B. CRITICAL ISSUES
• GMHC offers Richfield homeowners comprehensive support and a variety
of program offerings in acost-effective manner.
• GMHC offers their packages. of programs and services in 16 metro area
communities. By partnering with GMHC for these services, Richfield will
remain competitive in the metro area.
C. FINANCIAL
• .The cost of services for 2010 is $7,000; unchanged from 2009.
• Funds are allocated for these services in the 2010 HRA budget.
D. LEGAL
• The Agreement has been reviewed by legal counsel.
IV. ALTERNATNE RECOMMENDATION(S~
• The HRA can choose to direct staff to modify the scope of services or modify the
amount with GMHC.
• The HRA can choose to not approve the Agreement.
V. ATTACHMENTS
• Copy of the Consultant Services Agreement
VI. PRINCII'AL PARTIES EXPECTED AT MEETING
• N/A
~D-~I
CONSULTANT SERVICES AGREEMENT
THIS IS AN AGREEMENT entered into the day of , 200_, by and
between the Richfield Housing and Redevelopment Authority, ("HRA"), and GREATER
METROPOLITAN HOUSING CORPORATION, a Minnesota non-profit corporation
("Consultant"}.
RECITALS
A. The Consultant has a division .called The Housing .Resource Center ("HRC").
GMHC has agreed to provide certain Services through HRC (as defined below) in connection
with the HRA's housing prol,~ram.
B. The HRA desires to hire the Consultant to render this technical, professional, and
marketing assistance in connection with housing programs in the HRA for the term as set forth in
this Agreement.
C. Consultant is willing to provide such services on the terms and conditions set
forth herein.
In consideration of the foregoing recitals and following terms, conditions and mutual.
promises contained herein, the parties agree as follows:
1. Scone of Services. The. Consultant shall provide services as follows (the
"Services"):
a. Administer the following home improvement programs for residents of the City of
Richfield (the "City"): MHFA Fix Up Fund, Community Fix Up Fund and the
MHFA Rental Rehab Pro~arn (collectively the MHFA programs):
1. Providing information to residents and property owners about the
programs, upon request;
2. Assist the HRA irr marketing the programs;
3. Receipt of applications from residents;
4. Processing applications;
5. Closing loans to qualified applicants in accordance with the applicable
pro~am;
6. Overseeing the draw process for the funds, including, as necessary,
reviewing draws, reviewing the progress of the work and collecting lien
waivers and certificates of occupancy. Consultant may, for this purpose,
rely on third-party representations and certifications.
7. Provide monthly reports about the number of loans closed and the balance
in each loan program.
fb.us.3166730.04 1
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b. Assist City residents considering rehabilitation, including property visits, meet with
homeowners and potential contractors, suggest alternatives for rehabilitation to
homeowners, educate homeowners on the construction bid process, assist
homeowners to evaluate bids and work completed and construction proi~ress.
c. Provide HRC housing information to City residents, including information on
emergency assistance, housing rehabilitation, first time homebuyers and limited
rental information;
d. Assist the HRA in developing programs to purchase and rehabilitate homes;
e. Coordinate these services out of Consultant's South office; and
f. Have Consultant's staff visit residences. as determined necessary by Consultant.
2.. Term. This Al,~reement shall be in full force and effect from January 1, 2010 and
shall continue through December 31, 2010, unless otherwise terminated as set forth below.
3. Compensation. For services provided under this Agreement, the HRA shall pay
to the Consultant Seven Thousand Dollars ($7,000.00) within thirty (30) days after execution of
this Agreement.
The Consultant shall receive compensation for administering the MHFA Programs directly from
the Minnesota Housing Finance Agency and not from the HRA.
4. Termination. Notwithstanding any other provision hereof to the contrary, this
Agreement may be terminated as follows:
a. The parties, by mutual written agreement, may terminate this Agreement at any
time in which case the parties shall agree to the amount of fees payable to
Consultant.
b. HRA may terminate this Agreement upon the breach by Consultant of any of its
material covenants contained herein, where such breach shall have continued for a
period of thirty (30) days following the receipt by Consultant of a written notice
from HRA, specifying the alleged breach; provided, however, if the nature of a
non-monetary breach is such that Consultant cannot reasonably cure same in the
thirty (30) day period, Consultant shall not be deemed to be in breach if it
commences to cure within the thirty (30) day period, and diligently pursues same
to completion within ninety (90) days following receipt by Consultant of such
written notice. In the event of termination by HRA hereunder, Consultant shall be
entitled to fees due to the date the notice of breach is sent by the HRA.
c. If Consultant or HRA (as applicable) (i) files a voluntary petition in bankruptcy
(ii) files a voluntary petition for reorganization under any bankruptcy law, statute
or regulation or other similar statute or regulation, (iii) is adjudicated a bankrupt,
(iv) makes an assignment for the benefit of creditors or applies for or consents to
fb.us.3166730.04 2
~~-3
the appointment of a receiver or trustee as part of or in conjunction with a
"creditor plan" with respect to any substantial part of its assets, or (v) a receiver or
trustee is appointed, or an attachment or execution levied with respect to any
substantial part of its assets, and said appointment is not vacated, or the
attachment or execution not released, within sixty (60) days, then this Agreement
shall, effective as of such date, without notice or further action by either party,
immediately terminate.
d. Consultant may terminate this Agreement upon the breach by HRA of any of its
material covenants contained herein, where such breach shall have continued for a
period of thirty (30) days following the receipt by HRA of a written notice from
Consultant, specifying the alleged breach; provided, however, if the nature of a
non-monetary breach is such that HRA cannot reasonably cure same in the thirty
(30) day period, HRA shall not be deemed to be in breach if it commences to cure
within the thirty (30) day period, and diligently pursues same to completion
within ninety (90) days following receipt by HRA of such written notice. In the
event of termination by Consultant hereunder. Consultant shall be entitled to
retain the entire fee under this Agreement.
5. Insurance.
a. During the term of this Agreement, the Consultant shall obtain and maintain
workers compensation, comprehensive general liability, and automobile liability
insurance. Comprehensive general liability insurance shall have an aggregate
limit of Two Million Dollars ($2,000,000.00).
b. Upon request by the HRA, the Consultant shall provide a certificate or certificates
of insurance relating to the insurance required. Such insurance secured by the
'Contractor shall be issued by insurance companies licensed in Minnesota. The
insurance specified maybe in a policy or policies of insurance, primary or excess.
c. Such insurance shall be in force on the date of execution of an Agreement and
shall remain continuously in force for the duration of the Agreement.
6. Indemnification.
a. Notwithstanding anything to the contrary in this Agreement, the HRA, its officers,
agents, and employees shall not be liable or responsible in any manner to the
Consultant, the Consultant's successors or assigns, the Consultant's subcontractors,
or to any other person or persons for any third party claim, demand, damage, or
cause of action of any kind, nature, or character, including intentional acts, arising
out of or by reason of the performance of this Agreement by Consultant. The
Consultant, and the Consultant's successors or assigns, agree to protect, defend and
save the HRA, and its officers, agents, and employees, harmless from all third party
claims, demands, damages, and causes of action, to the extent caused by the
negligence or wrongful acts of Consultant,. and the costs, disbursements, and
fb.us.3166730.04 3
`i ~' `7
expenses of defending the same, including but not limited to, attorneys fees,
consulting services, and other technical, administrative or professional assistance.
b. Nothing in this Agreement shall constitute a waiver or limitation of any immunity or
limitation of any immunity or limitation on liability to which the HRA is entitled
under Minnesota Statutes, Chapter 466, or otherwise.
7. Assignment. This Agreement shall not be assigned, sublet, or transferred, in
whole or in part without the prior written approval of the HRA.
8. Conflict of Interest. The Independent Contractor shall use best efforts to meet
all professional obligations to avoid conflicts of interest and appearances of impropriety in
representation of the HRA. In the event of a conflict, the Independent Contractor, with the prior
written consent of the HRA, shall arrange for suitable alternative services.
9. Compliance with Laws. The Consultant shall comply with all applicable
Federal, State, and local laws, rules, ordinances, and regulations at all times and in the
performance of the services pursuant to this Agreement.
10. Notices. Any notices permitted or required by this Agreement shall be deemed
given when personally delivered or upon deposit in the United States mail, postage fully prepaid,
certified, return receipt requested, addressed to:
Consultant: Greater Metropolitan Housing Corporation
15 South 5~' Street, Suite 710
Minneapolis, MN 55402
ATTN: Suzanne Snyder
HRA: Richfield Housing and Redevelopment Authority
6700 Portland Avenue
Richfield, MN 55423
Or such other address as either party may provide to the other by notice given in accordance with
this provision.
11. Entire Agreement. This Agreement, any attached exhibits and any addenda or
amendments signed by the parties shall constitute the entire agreement between the HRA and the
Consultant, and supersedes any other written or oral agreements between the HRA and the
Consultant. This Agreement can only be modified in writing signed by the HRA and the
Consultant.
12. Third Party Rights. The parties to this Agreement do not intend to confer on
any third party any rights under this Agreement.
13. Counterparts. This Agreement may be signed in one or more counterparts but
all of which taken together shall constitute one instrument.
tb.us.3166730.04 4
`f~"~~
14. Choice of Law and. Venue.. This Agreement. shall be governed by and construed
in accordance with the laws of the state of Minnesota. Any disputes, controversies, or claims
arising out of this Agreement shall be heard in the state or federal courts of Minnesota, and all
parties to this Agreement waive any objection to the jurisdiction of these courts, whether based
on convenience or otherwise.
15. Agreement Not Exclusive. The HRA retains the right to hire other housing
program consultants, in the HRA's sole discretion.
16. Data Practices Act Compliance. Data provided to the Consultant or created by
the Consultant under this Agreement shall be administered in accordance with the Minnesota
Government Data Practices Act, Minnesota Statutes, Chapter 13, as amended.
jSignature Page FolZowsJ
tb.us.3166730.04 5
~~~
IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by
their duly authorized officials, this Agreement on the respective dates indicated below.
HRA:
RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY
By:
Its: Chairperson
Date: , 2UU_.
CONSULTANT:
GREATER METROPOLITAN HOUSING CORPORATION
By:
Its: President
Date: , 200_
fb.us.3166730.04 6
AGENDA ITEM # rj
REPORT # 6
STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 19, 2010
REPORT PREPARED BY:
REPORT PRESENTER:
MICHELLE LEWIS/JtrLIE URBAN, HOUSING
SPECIALISTS
NAME, TITLE
JOHN STARK, COMMUNITY DEVELOPMENT
DIRECTOR
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY EXECUTIVE
ITEM FOR HRA CONSIDERATION:
Consideration of a resolution authorizing the Executive Director and Housing and
Redevelopment Authority Chair to execute instruments to purchase vacant and foreclosed
properties usin the Housing and Redevelopment Fund.
I. RECOMMENDED ACTION:
By Motion: Approve a resolution authorizing the Executive Director
and Housing and Redevelopment Authority Chair to execute
instruments necessary to purchase up to five vacant and foreclosed
houses using up to $494,350 from the Housing and Redevelopment
Fund through December 31, 2010.
II. BACKGROUND
On August 17, 2009 the Housing and Redevelopment Authority (HRA) authorized
the Executive Director and HRA Chair to execute instruments necessary to
purchase up to seven vacant and foreclosed houses for demolition using up to
$842,896 from the Housing and Redevelopment Fund. That authorization was
good through December 31, 2009. Under that authorization, the HRA purchased
one property and made an offer on one other property.
01192010 Foreclosure Purchase Authority Hsg Trust
The HRA budgeted funds to purchase properties to further the Richfield
Rediscovered and New Home Programs by removing small, substandard, obsolete,
or dilapidated homes and then replacing them with new homes. The supply of
vacant and foreclosed houses throughout the City offers an opportunity to further
these programs and to help stabilize neighborhoods.
Currently vacant and foreclosed properties are moving very quickly from the market.
Under the normal acquisition process, staff negotiates the purchase of a property
and brings it to the HRA for consideration. In order to work with bank-owned
properties to secure the homes, there is a need to be able to act more quickly.
As a result, staff is proposing .that the Executive Director and HRA Chair be given
the authority to acquire foreclosed properties meeting the following parameters
without obtaining HRA approval for each property:
• the property is foreclosed,
• the property is vacant,
• the property is blighted (as defined and required by the regulations governing
the Housing and Redevelopment Fund),
• prior to acquisition, staff establish an appropriate sale price based on recent
sales activity and/or assessed value and housing condition; and
• Expenditures for-all seven properties do not exceed a total of $494,350.
Staff will continue to report back to the HRA each month with a status report of
acquisition activity.
III. BASIS OF RECOMMENDATION
A. POLICY
• It is in the best interest of the City to ensure neighborhood stability and
reduce blight.
Through the City's Richfield Rediscovered program, the HRA
purchases and removes substandard and functionally obsolete
housing and replaces it with newer, higher valued homes.
• Through the City's New Home program, the HRA purchases and
removes substandard and functionally obsolete housing and replaces
it with new, affordable homes.
• The 2008-2018 Richfield Comprehensive Plan states as policy:
o Encourage the creation of "move-up" housing through
new construction and home remodeling.
o Promote the development of a balanced housing stock
that is available to a range of income levels.
B. CRITICAL ISSUES
• Richfield has suffered a high number of foreclosures over the past two
years and is expected to have more over the next several years.
• Neighborhoods in which there are one or more foreclosed and vacant
homes have detrimental impacts on the surrounding property values.
• The market of vacant and foreclosed properties is moving rapidly and
-staff needs flexibility to respond quickly to opportunities to purchase
vacant and foreclosed properties.
• Staff uses two "first look" programs that offer cities and non-profits the
chance to purchase properties before they are available on the open
market; however, they both require a response to purchase within
days.
• In addition to being in poor condition, some foreclosed properties have
function, layout, size and other issues that make them candidates for
the Richfield Rediscovered and New Home programs.
• The Richfield Rediscovered and New Home program funds can be
used to purchase vacant and foreclosed properties to accomplish
HRA goals throughout the City of Richfield.
• Authorization to utilize these two HRA programs would be limited to
purchasing vacant and foreclosed properties only. If other purchasing
opportunities arise staff would seek an approved Purchase Agreement
by the HRA before moving forward with purchasing activities:
C. FINANCIAL
• The HRA budgeted $331,500 under the Richfield Rediscovered
program and $162,850 under the New Home program for a total of
$494,350 for property acquisition for fiscal year 2010.
• Funding for these programs is allocated through the HRA Housing and
Redevelopment Fund.
• Total acquisition expenditures will not exceed the budgeted amount of
$494, 350.
D. LEGAL
• Legal counsel reviewed the resolution.
IV. ALTERNATIVE RECOMMENDATION(S~
• Do not extend the authorization for the Executive Director and HRA Chair to
execute agreements to purchase foreclosed homes.
V. ATTACHMENTS
• Resolution
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
~1
RESOLUTION NO.
RESOLUTION AUTHORIZING THE HOUSING AND REDEVELOPMENT AUTHORITY
STAFF TO ACQUIRE CERTAIN FORECLOSED HOMES WITHIN THE CITY AND TO
EXECUTE ALL INSTRUMENTS AND CONTRACTS RELATED THERETO
WHEREAS, pursuant to Minnesota Statutes, Sections 469.001 to 469.047 (the
"HRA Act") the City Council of the City of Richfield, Minnesota (the "City") has created the
City of Richfield Housing and Redevelopment Authority (the "HRA") and provided it with
the powers and duties of the HRA Act; and
WHEREAS, the HRA Act authorizes the HRA to acquire, improve, own, hold, sell,
lease, exchange, transfer, assign, pledge or dispose of any real or personal property; and
WHEREAS, the HRA has undertaken amulti-faceted response to the impact of the
foreclosure crisis on the community involving the use of the Housing and Redevelopment
Fund to acquire and demolish substandard, vacant, foreclosed single family homes; and
WHEREAS, in order to expand the effectiveness of the Program the HRA wishes
to directly purchase certain foreclosed properties to demolish and hold the lots for future
development; and
WHEREAS, it is the desire of the HRA Board of Commissioners to establish
certain parameters for such acquisitions and to authorize its Executive Director and HRA
Chair to proceed therewith without specific Board approval of each transaction.
NOW, THEREFORE, BE IT RESOLVED by the City of Richfield Housing and
Redevelopment Authority:
1. That the Executive Director and HRA Chair, with the assistance of HRA legal
counsel, is hereby authorized to enter into purchase agreements and acquire in the
name of the Authority up to five (5) single family, vacant, foreclosed homes (the
"Properties") on the conditions that:
(a) The Properties are each acquired with the Housing and Redevelopment
Fund;
(c) Each Property is a foreclosed property acquired from a lender or a lender's
designee;
(d) The Properties have been vacant for at least 90 days prior to entering into a
Purchase Agreement;
(e) The Property is determined to be blighted as required by Housing and
Redevelopment Fund regulations;
(f) Prior to each acquisition staff establish an appropriate sale price based on
reasonable conditions;
(g) The total expenditures on all five properties does not exceed $494,350; and
~~~
(h) Prior to the acquisition of each property staff conducts appropriate due,
diligence to protect the HRA's interest.
2. That the Executive Director and HRA Chair are authorized to execute such
documents as shall be required in order to carry out the delegation provided in
paragraph 1 hereof.
3. That the Executive Director shall report the acquisition of any Property pursuant to
this Resolution at the next regular HRA meeting.
4. That disposition of acquired Properties shall be only by action of this Board.
5. That the authority granted hereby shall expire on December 31, 2010.
Adopted by the Richfield Housing and Redevelopment Authority of the City of
Richfield, Minnesota this 19th day of January, 2010.
Suzanne M. Sandahl, Chair
ATTEST:
Joan Helmberger, Secretary