08-17-2020 HRA Complete AgendaR E G U LAR H O U S IN G AN D R E D E V E LO P ME N T AU TH O R ITY ME E TIN G
V IR T U AL ME E TIN G H E L D V IA W E B E X
AU G U S T 17, 2020
7:00 P M
C all to Order
A ttendance Roll C all
Open F orum
Approval of the Minutes
A pproval of the minutes of the 1) C oncurrent C ity C ouncil and Housing and Redevelopment A uthority Work S ession of
J une 15, 2020; 2) the C oncurrent C ity C ouncil, Housing and Redevelopment A uthority and P lanning C ommission Work
S ession of July 20, 2020; and 3) the Regular Housing and Redevelopment A uthority meeting of July 20, 2020.
P R E S E N TATIO N S
1.HRA and E D A 2020 & 2021 B udget P resentation
AG E N D A APPR O VAL
2.A pproval of the A genda
R E S O L U T IO N S
3.C onsideration of resolutions approving 2021 P roposed Housing and Redevelopment A uthority B udget and Tax
L evy and 2020 Revised Housing and Redevelopment A uthority B udget.
S taff Report No. 27
H R A D IS C U S S IO N ITE MS
4.HRA D iscussion Items
E X E C U T IV E D IR E C TO R R E P O R T
5.E xecutive D irector's Report
C LAIMS
6.C laims
7.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
Concurrent City Council and Housing and
Redevelopment Authority Work Session
June 15, 2020
CALL TO ORDER
The work session was called to order by Chair Supple at 5:45 p.m. via Webex.
HRA Members Mary Supple, Chair; Maria Regan Gonzalez; Sue Sandahl;
Present: Erin Vrieze Daniels; and Pat Elliott
HRA Members
Absent: None
Council Members Maria Regan Gonzalez, Mayor; Mary Supple; Simon Trautmann, and Ben
Present Whalen.
Council Members Edwina Garcia.
Absent:
Staff Present: Katie Rodriguez, City Manager; John Stark, HRA Executive
Director/Community Development Director; Julie Urban, Housing Manager;
Melissa Poehlman, Assistant Community Development and LaTonia DuBois,
Administrative Assistant.
Others Present: Lori Boisclair, Boisclair Corporation (RF64/6501 Penn); Charlie Bird, PLH
Associates (Emi project); Mike Barnett, MB Realty (RF64/6501 Penn); Paul
Lynch, PLH Associates (Emi project) and Adam Seraphine, NHH Properties
(RF64/6501 Penn).
Item #1
REDEVELOPMENT UPDATES- THE EMI
Chair Supple inquired about speakers for the open forum. Administrative Assistant DuBois
explained there were no comments for open forum and provided instructions for submitting open
forum comments prior to meetings.
Executive Director Stark presented development projects that would be addressed at this work
session and introduced Assistant Community Director Poehlman to speak about the Emi project.
Assistant Community Director Poehlman provided information on the project location, project
delays, and conversations about adding some affordability and making modifications to the project,
Concurrent Council and HRA Work Session -2- June 15, 2020
and asked policy makers to provide general feedback, she then invited Paul Lynch (PLH Associates)
to explain his proposal.
Paul Lynch introduced Charlie Bird (PLH Associates) who he brought on to help with the
project due to having several years of experience with affordable housing and apartment complexes.
Charlie Bird explained his history with the Emi project and how the original plan was not
feasible due to increased construction costs and that they have had conversations regarding the
potential of Tax Increment Funding and the addition of affordable units. They have come up with a
couple different versions of the project that would add some affordable units and reduce commercial
space.
Commissioner Sandahl requested clarification on project location.
Charlie Bird provided project location information, and Assistant Community Director
Poehlman provided lot area.
Council member Whalen inquired about the different options for affordability.
Charlie Bird explained the options of reducing commercial space and adding some affordability
or eliminating commercial space all together and offered affordability rates.
Assistant Community Director Poehlman provided feedback received from Ehlers. The two
preliminary options meet HRA requirements, but would reduce commercial space.
Chair Supple inquired about what the concerns were from the public regarding the original
proposal.
Executive Director Stark explained some of the concerns heard from the neighborhood
regarding the original proposal.
Council member Whalen stated his support of the affordability factor and inquired about
commercial space in the general area, including the HUB shopping mall and asked staff to provide an
update on the previous conversations regarding the HUB area.
Assistant Community Director Poehlman provided feedback regarding the HUB area and
expressed thoughts of the potential value of commercial space at the Emi project.
Commissioner Vrieze Daniels stated she is in support of adding additional affordability inquired
about the commercial space being reduced or not and still adding six units and about sizes of the
units.
Charlie Bird explained the size of the units with reduced commercial space versus no reduced
commercial space and stated the affordable units would all be one bedroom, but would be larger than
one bedroom units in Minneapolis.
Commissioner Sandahl inquired about how many levels, if there were elevators and parking.
Stated that she is in support of affordable housing but she is more concerned with getting a
development that works.
Commissioner Regan Gonzalez expressed support of the full development being housing and
would like to see some two bedrooms included in the affordability aspect.
Chair Supple expressed her support of affordable housing and funding form the HRA to
include affordability.
Concurrent Council and HRA Work Session -3- June 15, 2020
Council member Trautmann offered support for affordability and expressed thoughts for
potential value of small commercial space in the area.
Commissioner Sandahl expressed support for commercial space in the area and the benefits
of having community gathering spaces.
REDEVELOPMENT UPDATES – 6501 PENN AVENUE SOUTH
Executive Director Stark provided the history of the development site gave a recap of a prior
work session and offered staff suggestions for the site.
Housing Manager Urban added that there are still a lot of details that need to be worked out,
phasing and timing that deeper affordability requires, discussed struggles to get input from the
community due to Covid-19 and the inability to have community meetings and requested feedback
from policy makers.
Executive Director Stark explained that due to higher costs, the Locus development team
would not be able to be involved in the project if it was decided that deeper affordability was involved.
Commissioner Vrieze Daniels expressed her support for 100% deeper affordability.
Commissioner Elliott expressed the importance of community feedback.
Commissioner Sandahl expressed support for 20% affordability and concerns regarding
100% affordability.
Executive Director Stark explained previous responses from the community to 100%
affordability and the struggle to gain support from the community.
Council member Whalen offered support for 100% affordability and suggested a range of
income restrictions.
Council member Trautmann offered support for a mixture of affordability throughout the
development and expressed discouragement that the Locus architect team would not be a part of the
development.
Executive Director Stark informed policy makers that staff would pursue which ever direction
policy makers decide upon.
Commissioner Regan Gonzalez agreed with deeper affordability, the importance of
community feedback and discussed language used regarding affordable housing.
Commissioner Vrieze Daniels seconded Commissioner Regan Gonzalez’s thoughts
regarding language used to explain affordable housing.
Commissioner Elliott spoke of affordability versus income restricted and thoughts he has
heard from community members. Commissioner Elliott suggested getting more community feedback
before moving forward.
Commissioner Sandahl expressed concerns with building developments that are only for
low income.
Concurrent Council and HRA Work Session -4- June 15, 2020
Chair Supple spoke in favor of a mixed income development that would include 30% – 80%
income averaging and the benefits of the amount of additional time required to get the development
funded.
Lori Boisclair (Boisclair Corporation) explained challenges and steps required to obtain
funding for affordable housing.
REDEVELOPMENT UPDATES – RF64
Housing Manager Urban provided an update on the RF64 project.
Adam Seraphine (NHH Properties) discussed setbacks due to Covid-19 and the acquisition
process, provided construction updates and the next phases in the project.
Mike Barnett (MB Realty) provided a re-cap on sales of the townhomes and impacts of
Covid-19 on sales. Informed policy makers that 64 townhomes are projected and the possibility of
increasing that number
Council member Whalen inquired about changes in unit sizes.
Adam Seraphine provided estimated unit sizes for apartments and townhomes and
explained that they are waiting for final designs from architect.
Chair Supple inquired about accessibility and affordability.
Adam Seraphine explained the affordability is in the townhomes and informed policy makers
that he would get the numbers for accessibility to John and Julie soon.
Council member Whalen spoke of the benefits of more accessible and the need for larger
units.
Lori Boisclair spoke to the number of three bedroom units and the costs for accessible units.
Executive Director Stark provided status updates on the Enclave and mentioned an
upcoming work session on that item. Provided updates on the Henley II, the Novo, Lunds apartments
and instructed anyone with questions to email him directly.
ADJOURNMENT
The work session was adjourned by unanimous consent at 6:57 p.m.
Date Approved: August 17, 2020
Mary B. Supple
HRA Chair
LaTonia DuBois John Stark
Administrative Assistant Executive Director
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Concurrent City Council, Housing and
Redevelopment Authority and Planning
Commission Work Session
July 20, 2020
CALL TO ORDER
The work session was called to order by Chair Supple at 6:00 p.m. via Webex.
HRA Members Mary Supple, Chair; Maria Regan Gonzalez; Sue Sandahl;
Present: Erin Vrieze Daniels; and Pat Elliott
HRA Members
Absent: None
Council Members Maria Regan Gonzalez, Mayor; Mary Supple; and Ben
Present Whalen.
Council Members Edwina Garcia; and Simon Trautmann.
Absent:
PC Members
Present: Kathryn Quam, Chair; Jim Rudolph; Peter Lavin; Sean Hayford Oleary; and
Brian Pynn
PC Members
Absent: Susan Rosenberg.
Staff Present: Katie Rodriguez, City Manager; John Stark, HRA Executive
Director/Community Development Director; Julie Urban, Housing Manager;
Melissa Poehlman, Assistant Community Development and LaTonia DuBois,
Administrative Assistant.
Others Present: Brian Bochman, Enclave Development; Ryan Samsa, Enclave Development;
Aaron Roseth, Enclave Development; Christopher Willettte, ESG Architects;
Neal Reardon, ESG Architects; and Bruce Hinks, property owner.
Item #1
DISCUSSION OF A REVISED REDEVELOPMENT PROPOSAL FOR PROPERTIES
AT THE NORTHEAST CORNER OF 65TH STREET AND LYNDALE AVENUE (6439
LYNDALE AVENUE SOUTH, 6437 LYNDALE AVENUE SOUTH AND 415 – 64 ½
STREET).
Concurrent Council, HRA and Planning Commission Work Session -2- July 20, 2020
Assistant Community Development Director Poehlman provided background on the project
and concerns Policy Makers discussed at previous work session.
Brian Bochman, Enclave Development, discussed requests and questions from residents and
Policy Makers and changes proposed to parking structure, provided updated time line and status of
current business owners and plans for relocation of those business looking to relocate in Richfield.
Discussed how ESG Architects came in to help with ideas for more affordable options, how affordable
housing would be addressed and the addition of affordable units.
Planning Commissioner Lavin inquired about the exit and entry of parking and traffic on 64 ½.
Brian Bochman explained exit and entry from and to Lyndale Avenue and explained the
Lyndale Avenue exit and entry would likely be the quicker option and discussed the fire code
requirements for parking.
Planning Commissioner Lavin expressed neighborhood concerns regarding traffic.
Council Member Whalen requested clarification regarding Tax Increment Financing and
following the Inclusionary Housing Policy guidelines.
Brian Bochman explained how Natural Occurring Affordable Housing would come into play.
Council Member Whalen expressed desire for more resources to allow more affordable units
opposed to Tax Increment Financing.
Executive Director Stark mentioned applications being submitted to the Met Council to seek
additional funding. The current gap exceeds HRA’s ability to fill.
Assistant Community Developer Poehlman inquired about ways to make the project work and
about providing a smaller amount of affordable units to start the project but to seek additional funds to
fill the gap to allow for more affordable and or accessible units.
Brian Bochman discussed high development costs and the desire to look into additional
funding to allow more affordable units and the need to access financing for the project and the parking
ratio setbacks to obtain a density rate while maintaining reasonable parking ratios.
Assistant Community Development Director Poehlman explained the parking requirements are
Enclave’s parking requirements not the Cities requirements, but Enclave parking requirements fall in
line with the City requirements, Brian Bochman explained the reasoning for Enclave’s parking
requirements.
Council Member Hayford Oleary expressed thoughts that he believes this good project and
improvement to the site, and stated concerns with design and would like to see the main entrances on
Lyndale Avenue. He also stated concerns with the additional parking and funds being invested in
parking versus affordable units.
Christopher Willette, ESG Architects offered design explanation regarding primary access
points and stated willingness to look into other options. Discussed possible options if there was on
street parking and discussed the commercial terrace area and opportunities for walk up spaces.
Mayor Regan Gonzalez expressed appreciation for efforts being made by City staff and the
developers, and echoed concerns regarding the entrance into the neighborhood and amities
projecting into the neighborhood, and affordable housing desires.
Commissioner Sandahl inquired about plans for Lyndale Avenue and slowing traffic.
Concurrent Council, HRA and Planning Commission Work Session -3- July 20, 2020
Assistant Community Development Director Poehlman stated an additional roundabout is
planned for 65th and Lyndale Avenue and lanes being narrowed to slow traffic on Lyndale Avenue
north of 66th Street.
Chair Supple mentioned a chat message stating a reduction of the speed limit in the area has
been approved.
Planning Commissioner Lavin inquired about who would occupy the commercial space.
Brian Bochman expressed desired tenants, but inability to predict.
Commissioner Sandahl inquired about access for commercial business.
Brian Bochman explained there would be access to the commercial spaces from the front walk
up spaces and the rear.
Council Member Whalen echoed concerns with front and rear entry points and expressed his
desire for affordability and that he would not be interested if there was not affordable housing.
Commissioner Vrieze Daniels echoed comments about affordability and she too would not
approve without the affordable units.
Brian Bochman inquired about how other developments were able to provide affordable units.
Executive Director Stark explained the different ways other developers were able to provide
affordable units.
Chair Supple echoed the desire to provide assistance to relocate current businesses in
Richfield and for affordability.
Commissioner Elliott offered support to the developers and their efforts to work with Policy
makers and residents.
Planning Commissioner Lavin echoed Commissioner Elliot’s statements.
Commissioner Sandahl echoed Commissioner Elliot’s position that this would be a good
development for the City.
Executive Director Stark mentioned how other developments have adhered to the Inclusionary
Housing Policy and mentioned some constraints in obtaining affordability.
Planning Chair Quam offered her support.
Planning Commissioner Rudolph also offered his support.
Chair Supple thanked the development team.
ADJOURNMENT
The work session was adjourned by unanimous consent at 6:57
p.m. Date Approved: August 17, 2020
Concurrent Council, HRA and Planning Commission Work Session -4- July 20, 2020
Mary Supple
Chair
LaTonia DuBois John Stark
Administrative Assistant Executive Director
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
July 20, 2020
CALL TO ORDER
The meeting was called to order by Chair Supple at 7:04 p.m. via Webex.
HRA Members Mary Supple, Chair; Sue Sandahl; Maria Regan Gonzalez; Pat Elliott
Present: and Erin Vrieze Daniels.
HRA Members
Absent: None.
Staff Present: John Stark, Executive Director; Julie Urban, Housing Manager; Melissa
Poehlman, Assistant Executive Director and LaTonia DuBois, Administrative
Assistant.
Others Present: Gary Duncan, 6345 Partners, LLC; Paul Lynch, PLH & Associates
OPEN FORUM
No speakers
APPROVAL OF THE MINUTES
M/Elliott, S/Vrieze Daniels to approve the minutes of the regular Housing and
Redevelopment Authority meeting of June 15, 2020.
Motion carried 5-0
Item #1
APPROVAL OF THE AGENDA
M/Elliott, S/Sandahl to approve the agenda.
Motion carried 5-0
Item #2
APPROVAL OF THE CONSENT CALENDAR
HRA Meeting Minutes -2- July 20, 2020
Executive Director Stark presented the consent calendar and explained how Tax
Increment Financing works.
A. Consideration of the adoption of a resolution approving the issuance of, and providing
the form, term, covenants and directions for the issuance of its Tax Increment Financing
Limited Revenue Note, Series 2020 in an aggregate principal amount not to exceed
$8,492,000, related to Tax Increment Financing District 2017-1 (The Chamberlain). (S.R.
No. 22)
RESOLUTION NO. 1363
RESOLUTION APPROVING THE ISSUANCE OF, AND PROVIDING THE FORM, TERMS,
COVENANTS AND DIRECTIONS FOR THE ISSUANCE OF ITS TAX INCREMENT LIMITED
REVENUE NOTE, SERIES 2020 IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED
$8,492,000
M/Regan Gonzalez, S/Elliott to approve the consent calendar.
Motion Carried 5-0
Item #3
CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM THE CONSENT
CALENDAR
None.
Item #4
CONSIDERATION OF A RESOLUTION APPROVING A CONTRACT FOR PRIVATE
DEVELOPMENT WITH 6345 PARTNERS, LLC AND AUTHORIZING THE
ISSUANCE OF A TAX INCREMENT LIMITED REVENUE NOTE. (S.R. NO. 23)
Executive Director Stark presented the staff report No 23 and went over some of the terms
of the contract. Executive Director Stark provided an overview of resident comments submitted to
Commissioners and Staff prior to the meeting. Some of the main concerns submitted were related
to parking and traffic, the amount of multi-family units in the neighborhood and access to the park.
Commissioner Elliott inquired about parking concerns and the requirement to pay for
parking.
Executive Director Stark and explained the City parking requirements are being met.
Assistant Community Development Director Poehlman offered further explanation regarding
the parking requirements being met.
Gary Duncan, 6345 Partners, LLC (Developer) explained the efforts to maximize parking on
the lot.
Assistant Community Development Director Poehlman mentioned discussions with Public
Works regarding parking restrictions, and that there are no current plans to change any parking
restrictions and explained the process to change parking restrictions. Assistant Community
Development Director Poehlman also explained the reasoning for paid parking to reduce rent for
tenants that use other means of transportation and to not require those tenants rent to be
subsidized to cover parking costs.
HRA Meeting Minutes -3- July 20, 2020
Executive Director Stark explained the demand for parking will require further review as the
project develops and that the Developer may adjust parking rates based on usage.
Chair Supple inquired about parking restrictions and the timeline of the Lyndale Avenue
project.
Commissioner Sandahl inquired about the resident concerns regarding the entry to the
park.
Executive Director Stark explained the Crime Prevention through Environmental Design’s
vision is that the more accessible a park is the safer it is with more eyes being on the park.
Assistant Community Development Director Poehlman went over design plans for park
access.
Commissioner Sandahl offered appreciation of Garfield Park and new amenities.
Chair Supple sated having two separate access points to the park would be best.
Executive Director Stark explained this is a Housing Tax Increment Financing District and
explained how the funds would be used for this project.
Commissioner Vrieze Daniels expressed appreciation for efforts to reduce rent costs.
Chair Supple inquired about the timeline for adjusting parking rates.
Executive Director Stark explained previous communications with the Developer regarding
monitoring parking.
The Developer stated the majority of current residents are paying for parking.
Executive Director Stark spoke of how parking issues had been resolved on previous
developments and that parking will be monitored and solutions would be worked on.
Commissioner Regan Gonzalez stated her appreciation for labor laws being addressed and
included in this agreement.
M/Vrieze Daniels, S/Elliott approve a resolution approving a contract for private
development with 6345 partners, LLC and authorizing the issuance of a tax increment limited
revenue note.
Motion Carried 5-0
RESOLUTION NO. 1364
RESOLUTION APPROVING CONTRACT FOR PRIVATE
DEVELOPMENT WITH 6345 PARTNERS, LLC AND AUTHORIZING
THE ISSUANCE OF A TAX INCREMENT LIMITED REVENUE NOTE
HRA Meeting Minutes -4- July 20, 2020
Item #5
CONSIDER THE ATTACHED RESOLUTION APPROVING A PRELIMINARY
DEVEOPMENT AGREEMENT BETWEEN THE HOUSING AND REDEVELOPMENT
AUTHORITY AND PLH & ASSOCIATES – CONSTRUCTION SERVICES, LLC FOR
THE REDEVELOPMENT OF 101 66TH STREET EAST. (S.R. NO. 24)
Assistant Community Development Director Poehlman presented staff report No. 24
Commissioner Elliott inquired about commercial space on the ground floor and Council
Member Garcia’s concerns were being addressed.
Assistant Community Development Director Poehlman informed Commissioners that there
would be 1600 square feet of commercial space and the requirement for the Developer to amend
the PUD to address Council Member Garcia’s concerns.
Chair Supple inquired about the type of Tax Increment Financing (TIF) District.
Assistant Community Development Director Poehlman explained this would be a
redevelopment TIF District.
Commissioner Vrieze Daniels stated her appreciation of the project moving forward.
M/Regan Gonzalez, S/Elliott to approve the preliminary development agreement between
the HRA and PLH & Associates Construction Services, LLC for development at 101 66th Street
East and authorize execution of the agreement by the HRA Chair and Executive Director.
Motion Carried 5-0
RESOLUTION NO. 1365
RESOLUTION APPROVING PRELIMINARY DEVELOPMENT AGREEMENT
WITH PLH & ASSOCIATES – CONSTRUCTION SERVICES, LLC
Item #6
CONSIDER THE ADOPTION OF A RESOLUTION APPROVING REVISIONS TO
THE INCLUSIONARY AFFORDABLE HOUSING POLICY. (S.R. NO. 25)
Housing Manager Urban presented staff report No. 25 discussed previous work sessions
and went over some of the proposed revisions.
Due to Covid-19 restrictions obtaining community feedback regarding the Inclusionary
Housing Policy has been challenging. For this reason, Commissioners requested this item be
postponed and the need for an engagement plan. Staff will work on an engagement plan and come
back to this item.
Item postponed.
Item #7
CONSIDER A REQUEST TO PURCHASE THE PROPERTY AT 6701 17TH
AVENUE SOUTH FOR $412,000. (S.R. NO. 26)
HRA Meeting Minutes -5- July 20, 2020
Assistant Community Development Director Poehlman presented staff report No. 26.
Commissioner Regan Gonzalez inquired about possible outcomes of rejecting the offer to
purchase the property and what the next steps could be.
Executive Director Stark expressed previous offers and efforts to purchase the property,
offered explanation lack of rational for purchasing the property and requested direction from the
HRA regarding bringing any future offers to the HRA for consideration.
Commissioner Elliott stated the previous offers and efforts to purchase the property and felt
voting this down is appropriate and that it would be unnecessary for staff to reach out further.
M/Sandahl, S/Elliott to reject an offer to purchase the property at 6701 17th Avenue South
for $412,000.
Motion Carried 5-0
Item #7
HRA DISCUSSION ITEMS
Chair Supple shared appreciation of staff’s openness with suggestions from residents and
Commissioners and their work on projects.
Item #8
EXECUTIVE DIRECTOR REPORT
Executive Director Stark shared his appreciation of working with Commissioners and
residents. Executive Director Stark informed Commissioners about the Federal CARES Act
Funding that was awarded to the City that could be used for business and rent assistance
reimbursement. VEAP is also applying for Emergency Rent Assistance through the state CARES
funding and the hope would be to get as much of that funding out to the community as possible.
Item #9
CLAIMS
M/Elliott, S/Sandahl that the following claims be approved:
U.S. BANK 7/20/2020
Section 8 Checks 131940-132030 $183,961.40
HRA Checks 33857-33873 $58,050.44
Total $242,011.84
Motion carried 5-0
HRA Meeting Minutes -6- July 20, 2020
Item #10
ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:36 p.m.
Date Approved: August 17, 2020
Mary B. Supple
HRA Chair
LaTonia DuBois John Stark
Administrative Assistant Executive Director
2020-2021 HRA BUDGET
HRA Staffing
The HRA pays more than 40% of the salary of ten employees
HRA Staffing (and the percentage of their time covered by the HRA)
Executive Director, John Stark (62%)
Housing & Redevelopment Manager, Julie Urban (86.5%)
Assistant CD Director, Melissa Poehlman (40%)
Housing Specialists, Kate Aitchison & Celeste McDermott – Job Share (90%)
Accountant, Myrt Link (80.5%)
Administrative Assistant, LaTonia DuBois (74.5%)
Multifamily Housing Administrator, Lynnette Chambers (66%*)
Section 8 Tech’s, Cindy Veldey and Talisa Parson – Job share (100%*)
*primarily funded by the Federal government
HRA Budget History
2021 Proposed: $3,693,690 (4% increase over 2020 Approved)
2020 Revised: $3,746,950 (5.5% increase over Approved)
2020 Approved: $3,551,170
2019 Approved: $5,083,610 Expended: $4,895,982 (97%)
2018 Approved : $3,969,610 Expended: $4,681,228 (118%)
2017 Approved : $4,062,410 Expended: $4,374,928 (108%)
2016 Approved : $5,328,050 Expended: $3,709,231 (70%)
2015 Approved : $4,976,220 Expended: $3,353,267 (67%)
2014 Approved : $5,378,030 Expended: $2,374,136 (44%)
2013 Approved : $5,636,870 Expended: $3,202,189 (57%)
2012 Approved : $4,896,370 Expended: $5,020,195 (103%)
Community Development/HRA
The overall HRA budgets are as follows:
2020 Approved: $3,551,170
2020 Revised: $3,746,950
2021 Proposed: $3,693,690
The 2020 Revised Budget includes an $195,000 increase over the 2020 Approved Budget
This increase is due primarily to COVID-19 Rent Assistance and other COVID related expenses
Most of the HRA’s COVID costs to be reimbursed by CARE$ Act
The 2021 Proposed Budget is $53,260 less than the 2019 Revised Budget
Represents a $142,520 (4%) increase over 2020 Approved Budget due primarily to increased personnel costs
Community Development/HRA
2020/21 Budget Highlights
•COVID-19 Impacts
–HRA Employees working 25%-100% from home
–Technological deficiencies are improving
–$125,000 in special COVID-19 Rent Assistance provided through VEAP
thus far; more is being planned
–$5-7,000 in COVID Care Packages (hand sanitizer, masks & cleaning
supplies) for Section 8 and Kids@Home recipients
–Many events (such as Realtor Workshop and PennFest) cancelled
–Section 8 income qualification became more complex with changes in
employment
–Section 8 housing inspections also became a challenge
–Reduced in-person visits (e.g., Remodeling Advisor)
–Delayed new initiatives to focus on core services and impacts from
COVID (e.g., ADUs, Apartment Liaison)
2020/21 Budget Highlights
•Redevelopment Construction Progress:
–The Chamberlain: Rehabilitation of 33 units at 6720, 6730 & 6744
Cedar was completed in 2019. Three new buildings (283 new units)
opened in late 2019 and in 2020. Includes 64 units of housing
affordable to households at/below 50% of the AMI.
–The Lakeside at Lyndale condominiums (30 units of luxury ownership
housing) sold/occupied in 2020. Estimated to contribute approximately
$11,000/year to Richfield’s Housing & Redevelopment Fund.
–The Henley (66 apartments and 7 rental townhomes) became fully
occupied in 2020. Includes 7 affordable units (60%-AMI).
–RF64 Townhomes – First 8 townhomes completed, construction
underway on 16 additional units (100/115% AMI). Awarded Minnesota
Housing funds to expand affordability (80/100% AMI). Apartment
construction expected in 2021.
2020/21 Budget Highlights
•Redevelopment Plans in the Works:
–Henley II (64 th & Lyndale): HRA approved Contract and preliminary TIF
for 22 -unit rehabilitation and 82 units of new mixed income housing
(including 16 units @ 50%AMI)
–6501 Penn: HRA approved preliminary development agreement to
explore construction of mixed use project with potential for more
deeply affordable residential units.
–The Emi (66 th & Stevens): HRA approved preliminary development
agreement to explore reconfiguring of the approved mixed use project
to add affordable units and reduce commercial space.
–The Enclave (65 th & Lyndale): HRA approved preliminary development
agreement to explore construction of a mixed use project with
approximately 130 new apartments and 8,000 square feet of ground
floor commercial space.
–$40,000 for Lakes at Lyndale public improvements
2020/21 Budget Highlights
•Housing Programs
–Awarded three loans under the new Downpayment
Assistance Program. Added additional money to the Program
but saw slow -down in activity with onset of COVID and
continued rising housing prices.
–Completed two new homes with Habitat for Humanity (one
with universal design features) and one purchase/rehab with
Homes Within Reach (land trust).
–Sold Emerson Lane (purchased in 2005). New infrastructure
and five new homes constructed by builder.
–Additional funding budgeted for affordable New Home
Program in 2021 (1 new construction; 2 purchase/rehabs).
2020/21 Budget
Other Considerations
•Current & Future TIF “Pooling”
–Urban Village (2025)
–Interchange West (Best Buy) (2025)
–City Bella (2030)
–Lyndale Gardens (2039)
–May have unbudgeted expenses later this year; expenditure of pooled TIF may be warranted. These would be brought before HRA Board for approval.
•Trend to Watch
–HRA Funds with few restrictions shrinking
–Restrictive HRA Funds growing – challenge of finding permissible ways to spend
•Trying to view the levies holistically (City, HRA & EDA)
Community Development/HRA
Funding Sources from the HRA Budget
Expenditures from the HRA Budget
2020A 2020R 2021P
Taxes $ 606,520 $ 606,520 $ 618,400
Intergovernmental Rev. $ 1,915,000 $ 2,093,380 $ 1,904,340
Miscellaneous Revenues $ 245,510 $ 189,170 $ 240,020
Transfers $ 401,900 $ 772,760 $ 859,210
Total $ 3,168,930 $ 3,661,830 $ 3,621,970
2020A 2020R 2021P
Personnel $ 485,300 $ 477,450 $ 498,270
Other Services & Charges $ 1,922,600 $ 2,258,190 $ 2,239,880
Capital Outlay $ 659,800 $ 513,600 $ 581,500
Transfers $ 80,470 $ 468,560 $ 213,000
Total $ 3,148,170 $ 3,717,800 $ 3,532,650
HRA Levy History
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
$550,000
$600,000
$650,000
$700,000
$750,000
2015 2016 2017 2018 2019 2020 2021
HRA Levy
Max Levy
Questions & Discussion
Economic Development Authority
2020 Levy: $548,440
2021 Proposed Levy: $529,190 ($19,280 decrease)
Max Levy Permitted by Law: $697,326
2020 Approved 2020 Revised 2021 Proposed
Salaries & Benefits $ 64,780 $ 61,880 $ 65,910
Kids @ Home $ 135,850 $ 120,840 $ 11,150
Transformation Home Loans $ 131,000 $ 131,000 $ 131,000
Apartment Rehab Loan/Grant $ 100,000 $ *200,000 $ 100,000
Business Development $ 95,000 $ 280,000 $ 115,000
Open to Business $ 6,250 $ 6,250 $ 6,250
Professional Services $ 7,500 $ 3,500 $ 7,500
Misc. $ 1,690 $ 1,940 $ 1,440
Budgeted Expenditures $ 542,070 $ 805,410 $ 438,250
Levy Amount $ 548,440 $ 548,440 $ 559,190
Other Revenues $ 3,100 $ 2,100 $ 2,100
Budgeted Revenues $ 551,540 $ 552,640 $ 561,290
Balance $ 9,470 $ (252,710) $ 123,040
*= $100,000 in 2019 funds
EDA Budget Highlights
•Energy Efficient Business Grant program created in 2020
•High demand for Transformation Home Loan Program
continued in 2020.
•Rent assistance shifted to newly-created Housing Trust Fund
•Awarded one loan under the Apartment Remodeling Program
and one Apartment Improvement Grant.
•COVID Adjustments:
•Newly-created business loan funding shifted to COVID business
loans (35 loans totaling $132,400)
•Parent Share shifted to Zoom meetings, one-on-one check -ins
AGENDA SECTION:RESOLUTIONS
AGENDA ITEM #3.
S TAFF REPORT NO. 27
HOUSING AND RE DEVELOPMENT AUT HORIT Y
MEET ING
8/17/2020
RE P O RT P RE PA RE D B Y: C hris Regis, F inance D irector
O THE R D E PA RTM E NT RE V IE W: N/A
E X E C UTIV E D IRE C TO R RE V IE W: Melissa P oehlman, A cting E xecutive D irector
8/10/2020
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consideration of resolutions approving 2021 Proposed Housing and Redevelopment Authority Budget
and Tax Levy and 2020 Revised Housing and Redevelopment Authority Budget.
E X E C UT IV E S UM M ARY:
The bylaws of the Richfield Housing and Redevelopment Authority (HRA) require that an annual budget be
submitted to the HRA Commissioners for approval. Accordingly, the 2021 Proposed Budget and Tax Levy and
2020 Revised Budget are presented for approval.
I n addition, Minnesota State Statutes require adoption of a preliminary tax levy from each taxing authority.
The proposed tax levy must be certified to the Hennepin County Auditor by September 30, 2020. Any
amendments to the proposed budget, which would increase the property tax levy, must be made prior to
September 30, 2020. No increases in the tax levy are permissible after that date, only reductions. Final
certification of the HRA tax levy is part of the City’s budget process.
The tax levy as proposed represents a 3.00% increase from the previous year ’s levy.
RE C O M M E ND E D AC T I O N:
By Motion: Adopt the attached resolutions approving the 2021 Proposed Housing and Redevelopment
Authority Budget and Tax Levy and 2020 Revised Housing and Redevelopment Authority Budget.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
N/A
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
Minnesota Statutes require adoption of a preliminary levy from each taxing authority.
The budget and accompanying proposed levy for 2021 are ready for consideration.
Even though a public hearing for the HRA tax levy is not required by State Statute, this does not
preclude the HRA from opening this item up for public discussion if the HRA desires to do so.
C.C R IT IC AL T IMIN G IS S U E S:
As required by State Statutes, each taxing authority must certify its proposed tax levy for the payable
year 2021 to the County Auditor on or before September 30, 2020.
D.F IN AN C IAL IMPAC T:
The Proposed 2021 HRA levy represents a 3.00% increase from the previous year ’s levy. This equates
to an $18,380 increase.
The levy is approximately $80,527 less than the maximum HRA levy established by law of the .0185% of
the City’s total estimated taxable market value.
E.L E GAL C ON S ID E R AT ION:
N/A
ALTE R N AT IV E R E C O MME N D ATIO N(S):
The HRA could adopt a preliminary levy less than the one proposed herein. However, that would not provide
for programs that are recommended in the 2021 Proposed/2020 Revised budget.
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
2021 HRA B udget Tax L evy Resolution Resolution L etter
2020 HRA Revised B udget Resolution Resolution L etter
HRA RESOLUTION NO.
RESOLUTION APPROVING PROPOSED 2021 HOUSING AND REDEVELOPMENT
AUTHORITY BUDGET AND CERTIFYING THE 2021 TAX LEVY
BE IT RESOLVED by the Housing and Redevelopment Authority of the City of
Richfield, Minnesota as follows:
Section 1. The budget for the Housing and Redevelopment Authority
General Fund of Richfield for the year 2021 in the amount of
$560,850 is hereby ratified.
Section 2. The estimated gross revenue of the Housing and Redevelopment
Authority General Fund of Richfield from all sources, including
general ad valorem tax levies as hereinafter set forth for the year
2021, and as the same are more fully detailed in the Executive
Director’s official copy of the budget for the year 2021, in the
amount of $630,720 is hereby approved.
Section 3. There is hereby levied upon all taxable property in the City of
Richfield an ad valorem tax in 2020, payable in 2021 for the
following purposes:
Housing and Redevelopment Authority $631,030
Section 4. A certified copy of this resolution shall be transmitted to the County
Auditor.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 17th day of August, 2020.
Mary Supple, Chair
ATTEST:
Maria Regan Gonzalez, Secretary
RESOLUTION NO.
RESOLUTION AUTHORIZING REVISION OF THE 2020 BUDGET OF THE
HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD
WHEREAS, Resolution No. 1338 appropriated funds for personal services and
other expenses and capital outlay for the Housing and Redevelopment Authority for the
year 2020, and
WHEREAS, The Executive Director has requested a revision of the 2020 budget as
detailed in the 2021 budget document.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority of Richfield, Minnesota as follows:
Section 1. That the 2020 appropriation for the Housing and Redevelopment
Authority General Fund is revised as follows:
$84,150 increase
Section 2. Estimated 2020 gross revenue of the Housing and Redevelopment
Authority General Fund from all sources, as the same is more fully
detailed in the Executive Director’s official copy of the 2021 budget
document, are hereby revised as follows:
$11,800 decrease
Section 3. That the Executive Director bring into effect the provisions of this
resolution.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 17th day of August, 2020.
Mary Supple, Chair
ATTEST:
Maria Regan Gonzalez, Secretary